In October, the live hog and pork market in Brazil showed remarkably different price movements, with increases in the first half of the month followed by drops in the second half of the month. Researchers from the Center for Advanced Studies in Applied Economics (Cepea) conducted a detailed analysis of trends and identified regional factors that contributed to these significant variations.
According to Cepea, the beginning of October saw an increase in prices due to a lower supply of pigs at the ideal slaughter weight and an increase in demand. This combination resulted in higher values for both live hogs and pork in many regions of the country.
However, the second half of the month brought with it a decrease in market liquidity, leading to a reversal in prices. Pork and beef prices declined, mainly due to a reduction in domestic demand.
A regional analysis shows that while in some areas of the country, the initial price increase in the first half of the month managed to raise the October average compared to September, in other regions, the more pronounced devaluation in the second half of the month resulted in a lower monthly average. low.
In the case of Rio Grande do Sul, the limited supply of pigs maintained or increased values in October. State employees claim that the situation is a reflection of the withdrawal of small and medium-sized independent producers from pig farming, due to the prolonged period of negative margins caused by high production costs.