Falling pork prices in Brazil reflect increased supply and shrinking meatpacking plants

The Brazilian pork market is experiencing a decrease in prices for both live weight and wholesale cuts, due to a slowdown in negotiations by meatpackers and an increase in supply. Despite this, expectations for final consumption remain positive due to household capitalization and the high price of beef. The average price per kilo of live pig in Brazil has fallen by 6.60%, and wholesale prices are expected to continue falling. However, logistical difficulties at the end of the year may complicate the situation. Despite these challenges, Brazilian exports of "in natura" pork are showing international competitiveness, with over 50,000 tons exported in the first ten business days of December 2024.

The Brazilian pork market saw a decline in prices for both live weight and wholesale cuts over the past week. According to Allan Maia, an analyst at Safras & Mercado, the slowdown in negotiations by meatpackers and the increase in supply were key factors in the pressure on prices. “Wholesale prices are falling, a situation that should persist in the short term, since retailers have stocks to meet holiday demands, requiring only occasional adjustments,” said Maia. He also highlighted that the logistical difficulties that are typical of the end of the year complicate the scenario even further. Despite the sharp drop in prices, which is compromising producers’ margins, expectations for final consumption remain positive. The context includes household capitalization at the end of the year and the high price of beef, which is stimulating the search for more affordable options, such as pork cuts. According to a survey by Safras & Mercado, the average price per kilo of live pig in Brazil ...