Meat prices in Brazil could be impacted by war in Eastern Europe


Any 10% spike in cereal prices could be translated into a 2% rise in meat prices, says corporate investment bank Itaú BBA.

Posted on Mar 03 ,14:26

Meat prices in Brazil could be impacted by war in Eastern Europe

Meat prices in Brazl will not remain unchanged this year, as the war between Russia and Ukraine will impact the global food market. Brazil is a net exporter of corn and, as Ukraine provides 35% of the corn supply for China as of 2021, any disruption to this supply could have significant implications for cereal prices in Brazil, the bank said.
According to its analysis, every 10% increase in corn prices results in a 2% rise in unit cost of production for food processor BRF, which would spill over into Marfrig, which currently has a 33% stake in the company.
Ukraine and Russia are both net exporters of chicken meat, and any disruptions could also shift this demand to Brazil. BRF would reportedly benefit from a subsequent rise in product prices.
However, the bank reports that beef should remain stable and that companies such as JBS will see pressure in the chicken and pork segments but will be less affected in beef, as that sector sees less fluctuation in the US and Brazil with changing grain prices. Minerva would also suffer limited impacts, Itaú BBA reports, and that high global demand for beef means that meatpackers will be able to easily redirect sales to other markets if the situation in Eastern Europe continues or worsens.

 NEWSLETTER - Stay informed with the latest news!


Similar articles


Fragedo, the best ranked brand in the food industry in Brand Finance Romania

This outstanding performance reflects the vision and relentless efforts of Romania's largest poul...

Read more Read more

China imported more than a million tons of beef in four months

Between January and April, China purchased 190,000 tons more than last year in the same period, a...

Read more Read more

Lamb sales soar as shoppers seek a traditional Easter

Roasting joints spearheaded a bumper year-on-year growth, with a remarkable 24 per cent volume in...

Read more Read more
Websolutions by Angular Software and SpiderClass