A devaluation of the fat cattle arroba in the third quarter of this year contributed to reducing cattle confinement intentions in Mato Grosso, according to a survey carried out in October by the Matogrossense Institute of Agricultural Economics (Imea).
Of the 115 livestock farmers interviewed by the institute last month, 75.6% stated that they will confine this year, compared to 78.85% in July. With this, the The forecast is that the total volume of confined cattle will reach 555.18 thousand cattle heads, a drop of 10.22% compared to the previous survey and 21.17% compared to the same period last year.
“Although the average cost of the confined daily rate, of R$14.48/cab/day, is R$1.57/cab/day lower than in the same period in 2022. What led to this movement, of a smaller volume of confined animals, was mainly the drop in the prices of live cattlewhich narrowed the margin of activity in relation to previous years”, points out the survey.
The price of cattle was highlighted as the main concern of 51.8% of livestock farmers interviewed by Imea in October, followed by low profitability (15.4%) and economics and politics, each mentioned by 9.62% of producers. ears. Between the second and third quarter, the price of arroba in the State went from R$226.39 to R$194.92, according to Imea.
“The price of live cattle directly influences the “spirit” of feedlots, as it is the sales value of their product. Therefore, understanding the behavior of cattle prices over the period explains the level of concern among those interviewed in the surveys carried out”, explains the Matogrossense Institute.