Good environment for cattle farmers
Cattle prices and supply will still be reasonable for slaughterhouses in 2014. However, the first signs of a reversal in the cattle cycle have begun to appear, benefiting farmers.
In the past two years, the market has been favorable for slaughterhouses. This means there is a better supply of cattle ready for slaughter. When things turn in favor of farmers, calf prices fall and cattle fattening is not so attractive. This increases the number of cows sent to be slaughtered.
The slaughter of cows contributed to the figures in the second quarter. According to the IBGE, Brazil slaughtered 8.5 million head of cattle in the period, 11.7% up on the same period in 2012. This is the highest-ever level of slaughter.