Porto\nAlegre, December 4, 2020 – The\nmeat sector coped with inflated animal feeding costs in the second\nhalf of 2020. Corn and soymeal prices set historical records and\nended up putting pressure on the margins of the chicken industry.\nFortunately, for confinement and swine and dairy products, final\nprices have also surged, mitigating the effects of rising costs.<\/p>\n\n\n\n
However,\nfrom November, changes in this pattern of costs have become clear,\nwith soymeal and corn prices decreasing. The consequence was also\nfelt in peripheral products, with flours of animal origin, citrus\npulp, and other inputs also retreating in the Brazilian market.<\/p>\n\n\n\n
For\nthe first semester, there is a factor that needs to be considered in\nthe structure of animal feeding costs: the retraction in the corn\nsupply in the domestic market. With a summer crop in 2021 17% lower\nthan in the current year, there will be a great difficulty in the\nbuilding of stocks. Therefore, the supply in the first semester will\nbe very difficult, with a smaller summer acreage, added to inevitable\ncrop losses in Rio Grande do Sul and Santa Catarina. There are two\noptions for consumers: corn imports or even reduction in their\ndemand. The trend is that supply is normalized only in July, with the\narrival of the corn second crop. In other words, this is a long\nperiod based on the restriction of supply. Moreover, logistics will\nbe focused on the transportation of soybeans, resulting in higher\nfreight costs.<\/p>\n\n\n\n
For\nthe pig industry, the estimate of growth of the herd of matrices next\nyear is an important variable for the market dynamics. The sector\nmust expand the herd of matrices by at least 5%, in response to the\nsharp rise in prices in 2020. The housing of breeder chicks should\nalso remain at a high level. That is, there is a great need for the\nconsumption of corn and soymeal.<\/p>\n\n\n\n
For\nchicken farming, the great advantage is that it is possible to\ncorrect the route more easily, since its cycle is relatively short.\nFor pig farming and confinement, this kind of change usually takes\nyears, given the characteristics of each activity. It remains to be\nseen whether there will be the capacity to pass on this additional\ncost along the production chain. The economic recovery in 2021 will\nplay an important role in this movement.<\/p>\n\n\n\n
SAFRAS\nLatam<\/p>\n","protected":false},"excerpt":{"rendered":"
Porto Alegre, December 4, 2020 – The meat sector coped with inflated animal feeding costs in the second half of 2020. Corn and soymeal prices set historical records and ended up putting pressure on the margins of the chicken industry. Fortunately, for confinement and swine and dairy products, final prices have also surged, mitigating the […]<\/p>\n","protected":false},"author":16,"featured_media":9138,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[95],"tags":[],"commodity":[],"class_list":["post-21970","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-highlights-en"],"acf":[],"yoast_head":"\n