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Beef packers cautious and prices vary little

The cattle market in Brazil remains sluggish, with buyers cautious about acquiring new lots of animals because of difficulties in wholesale trade. In São Paulo, between May 25 and June 1, the ESALQ / BM&FBovespa cattle indicator registered slight fluctuations, but rose by 0.7%, closing at R$ 156.43 on Wednesday, June 1. Asia's economic development in recent years may favor the Brazilian cattle market. Brazil is already exporting good volumes to these countries and even greater increases in shipments may occur through increased productivity. Agri Benchmark says the main challenge for the Brazilian cattle industry is productivity. Brazil has one of the worst performers in terms of productivity but still produces cheaper meat than other competitors such as the United States and Australia. Better management in the field could result in sharp increases in productivity.

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