Chicken and pork: Lower purchasing power of domestic consumers and lower exports cause prices to fall in January

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Pressure, according to researchers from Cepea-Esalq in Piracicaba (SP), came from the increase in domestic availability resulting from the drop in exports and weakened domestic demand, with extra expenses from the population and school recess. Chicken Production Reproduction The drop in exports, lower consumer purchasing power and weakened domestic demand caused the prices of chicken and pork meat to fall in January 2024, according to a survey by the Center for Advanced Studies in Applied Economics (Cepea) of campus of the University of São Paulo (USP) in Piracicaba (SP). Compared to December last year, chicken prices registered drops of up to R$2.6%. – 👇Read in detail below. 📲 Receive news from the Piracicaba region on WhatsApp The downward movement in chicken prices occurs, according to the research, due to the increase in supply in the Brazilian market, caused by the decrease in demand for the food by the domestic consumer who, at this time of year , usually has planned tax expenses. Domestic demand also declines during school breaks. “The pressure, according to researchers from this Center, came from the increase in domestic availability resulting from the drop in exports and weakened domestic demand, [principalmente por] extra expenses for the population and school recess”, he highlights. Wholesale At the wholesale level in Greater São Paulo, the average price for whole chilled chicken was R$ 7.03 per kilo in January this year, a drop of 2.6% compared to Dec/23. For the frozen product, the drop was 2.5%, reaching R$ 7.04 per kilo of bird. “Live chicken was sustained during the period, reflecting the sector’s strategy of adjusting poultry housing of meat with internal demand”, points out Cepea. The average price of the animal in the state of São Paulo was R$ 5.11/kg, practically stable (-0.2%) in relation to the previous month. It is worth remembering that , in June 2023, live prices had been at the lowest since February 2021, at R$ 4.44/kg. Contrast The scenario contrasts with the end-of-year festive period. Chicken prices registered an increase between October and November 2023, according to Cepea. In December, the fourth consecutive month of food with an increase in prices, according to Cepea research, driven by the lower supply of chicken meat in the domestic market. According to Cepea’s assessment, with the November holidays, there was a decrease in the number of working days of the month for slaughter in agribusinesses. The average value per kilo of frozen chicken wholesale in the regions of Greater São Paulo, São José do Rio Preto (SP) and Descalvado (SP) on October 1st was R$7.19. On the same date in November, it was R$ 7.34, according to a quote from Cepea with employees in the sector. Prices of live pigs and meat from the animal also fell in January 2024 Pig Disclosure and weakened domestic demand. In the first 19 working days of January, the daily average of pork shipped was 3.7 thousand tons, a significant 22.7% below the performance presented in Dec/23 – data from Secex. In the domestic market, weak sales were linked to the population’s lower purchasing power at the end of the month, the school recess and the high supply of pigs. In comparison with December 2023, the live pig indicator closed at all lower levels in all states monitored by Cepea in January 2024. In Minas Gerais, the price of the animal was $ 6.87. In Paraná, at R$ 6.15. In Rio Grande do Sul and Santa Catarina, which had the lowest prices, the price closed at R$6.08 and in São Paulo, at R$6.55. Live Cattle Indicator published by Cepea ends January 2024 with an accumulated drop of 2.9%, closing at RR 245. Agência Pará via BBC Boi Gordo After starting January above R$ 252 per at, the Live Cattle Indicator published by Cepea ends January 2024 with an accumulated drop of 2.9%, closing on the last day of the month, this Wednesday (31), at R$ 245. According to Cepea researchers, the relatively long slaughter scales have put pressure on arroba prices , especially for animals intended to supply the domestic market. “In general, the prices offered by slaughterhouses have not pleased producers and generate some discouragement for replacement. Without much possibility of holding the animals in the pasture or in the trough, given that it increases costs, traditional livestock farmers and feedlots are testing their individual viability limits, trying to regulate supply”, notes Cepea. VIDEOS: everything about Piracicaba and the region See more news from the region on g1 Piracicaba

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