Pig prices remain weak in Brazil

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Porto Alegre, September 8, 2021 – Live pig prices and the main wholesale cuts remain weak in the country, which keeps pig farmers worried, as the cost of production remains at a high level despite the recent low in corn. The sale of pork cuts has evolved below expectations, even with the recent gain in attractiveness compared to beef and chicken. Rumors of delay in the certification by the Federal Inspection System is a point that could affect the level of slaughtering and the flow of exports in the short term, which could lead meat-packers to act in a withdrawn manner in negotiations involving animals for slaughter and hinder the recovery of live pig prices.

The spread between pork carcass and frozen chicken reaches historic lows, and the price of live pigs is close to that of chicken, as is the case in São Paulo, where a kilogram of pork is trading on average at BRL 6.13 against BRL 6.00 per kilogram of chicken. One point that helps to explain this situation is the economic uncertainty and deterioration of income of Brazilian households, with advancing inflation, leading to a more intense migration from beef to chicken and eggs. It is worth noting that despite the advance in pork consumption in the country over the last few years, it remains behind its competitors in terms of predilection.

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