Priciest Cows Ever Squeeze Meatpackers in Brazil Beef Boom
- Margins on domestic sales have turned negative, says Itau BBA
- JBS describes outlook for Brazil operations as ‘challenging’
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Brazil’s beef boom has already peaked, at least in terms of profitability.
Exports are surging, led by China, as a weakening currency boosts the appeal of Brazilian shipments. But partly as a result, cattle supplies have shrunk, pushing up prices that meatpackers pay by 50% this year to record highs. The industry is struggling to pass on those higher costs to Brazilian consumers, eroding margins.