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The State of Mato Grosso do Sul Decided to Import 50 Thousand Heads of Cattle from Paraguay to Maintain Price and Increase Supply of Beef in the Region
To maintain the price and increase the supply of beef in Mato Grosso do Sul, the state decided to import 50 thousand heads of cattle from Paraguay. The week started with good news for the state, 7 thousand job vacancies with the installation of the pulp mill in MS announced by Suzano.
The rise in beef prices is due to Chinese appetite and, mainly, the lack of cattle supply in the domestic market, due to drought in recent months.
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Brazil is the world’s largest exporter of beef and has profited from the higher demand from China for the product. However, the pressure for slaughterhouses to make record offers for cattle on farms has had repercussions for butcher shops.
The government of Mato Grosso do Sul is awaiting authorization from the Ministry of Agriculture, Livestock and Supply (Mapa) to finalize the purchase of 50 thousand cattle from Paraguay.
Jaime Verruck, Secretary of the Environment, Economic Development, Production and Family Agriculture, stated during a press conference yesterday, 16, “There is currently a request for 50 thousand animals to be purchased from Paraguay and slaughtered here. The purchase has not yet occurred because it depends on the Ministry of Agriculture’s authorization. But the price of meat will not return to the previous level; it’s a cycle; down the line it might change, but for now, I think we will still have price pressure, and consumers will continue to pay high prices for beef.”
The Secretary claims that “This issue of the sudden increase is literally a concept of supply and demand. For years, we have not increased salaries or income, so it is understood that the demand for beef is the same as it was a year ago. Therefore, the increase can only have arisen from external demand – not internal – and, at the same time, from a production period that could not meet this external demand. What happened with exports to China? The price paid for a ton of meat for export to China allowed this slaughterhouse to offer more. Internally, we have no evolution in demand.”
Even with the reduction in the price of cattle, which exceeded R$ 207 at the end of November, the price of meat has not yet yielded in butcher shops in Campo Grande.
Verruck states that the price of poultry meat has also increased, “I wager that we will find turkey, chester, and holiday birds at chicken prices because they were bought in October. So what was produced will be made available. Another issue is pork; only a few states export. I cannot take the pig from Mato Grosso do Sul and export it because I am not accredited.”
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