In 2023, cattle slaughter in Brazil increased by 11.4%

At the beginning of February, the cost of feeding cattle exceeded BRL 300 per arroba (15 kg). However, at the end of August the rate was trading below 200 Brazilian reais per arroba. At the end of 2023, the index returned to the level of 250 Brazilian reals.

Considering the monthly series of the CEPEA/B3 index, the average for September was BRL 214.67, the lowest since August 2012 (when it was BRL 206.80).

An atypical case of bovine spongiform encephalopathy (BSE) in February has had a major impact on the market this year, according to Cepea researchers. This led to the suspension of beef supplies to CHINA . However, in 2023, the country was the main destination for Brazilian products.

In 2023, beef exports to all destinations developed at a good pace, which contributed to the increase in supplies in the country. The number of animals slaughtered increased quarter after quarter. From January to September this year, 24.64 million animals were slaughtered, up 11.4% from the same period in 2022 and the highest since 2014, according to IBGE.

Calf and cattle prices declined in 2023, following the trend seen in feeder cattle. However, feedlot owners say the fall in corn prices since the second quarter of this year has not been enough to encourage expansion of this feedlot system.

As for the domestic beef market, in the first half of the year, when prices were high, demand was low. However, prices rose in August, compensating for the fall in prices.