Price of Brazilian land for livestock increases since 2003

The price of land in Brazil for the rearing of livestock has been rising strongly over the past years, according to Cepea, a research center from the University of São Paulo.

Considering regions surveyed by Cepea in association with CNA (Agriculture and Livestock Confederation of Brazil), between 2003 and 2012, an actual increase was 714% in the Santana do Araguaia region, Pará State. In the Minas Gerais State, from 2005 to 2012, the increase was 46% in the Uberlândia and Uberaba regions, and 62% in Montes Claros.

In Paraná State, from 2003 to 2013, the actual land valuation in the Paranavaí region reached 255%. In Sao Paulo, between 2007 and 2013, the increase in the price land was 260% in the Andradina region and 460% in the Tupã region.

With the high land valuation, agents from cattle market try to increase the yield. Some producers are also integrating agricultural production with cattle production.

Considering the fed cattle livestock market, trades are moving at slow pace in Brazil. On June 13, the ESALQ/BM&FBovespa Index (São Paulo) of fed cattle closed at US$54.83, increasing 1.17% in relation to May 30.

The poultry market, which registers its lowest level in nine months during late May, has seen broiler values increased in June. According to agents surveyed by Cepea, slaughterhouses are increasing broiler prices, due to high liquidity in the wholesale market of Greater São Paulo. On farm, chicken prices continue to fall in some regions surveyed by Cepea. Nevertheless, the producer's purchasing power in relation to corn increased this month.

In the first fortnight of June, pork prices in the wholesale market of Greater São Paulo are registering lesser increases than beef and broiler values. In this scenario, pork gained competitiveness in relation to beef and broiler. Despite the competitiveness of pork, sales in the wholesale market are weak. Agents are expecting an increase in the demand, due to the World Cup in Brazil. However, the demand did not come as aniticipated.