“Brazil has the cheapest beef in the world, based on the weighted average among the leading global exporters, and it imports only 0.8% of what it consumes…”
Lygia Pimentel is CEO and founder of AgriFatto, a commodities market consultant with extensive practical experience in agribusiness and derivatives. Pimentel holds degrees in veterinary medicine from the University of Marília and in economics from the University of Northern Paraná.
AgriBrasilis – Why has the price of beef risen so much?
Pimentel – The primary reason was exuberant demand, driven by the combination of an explosive dollar, municipal elections, and increased economic activity spurred by higher government spending. This resulted in demand exceeding supply. It is worth noting that beef production reached a historic record in 2024, reinforcing the notion that what occurred was a demand shock rather than a supply shock.
AgriBrasilis – Will beef continue to pressure the Brazilian inflation?
Pimentel – Yes. We are nearing the end of the downturn phase of the cattle cycle. In other words, between 2022 and 2024, livestock prices weakened, thereby eroding farmers’ margins. Discouraged by poor economic returns, farmers liquidated their herds to maintain cash flow. This reduces the future capacity for calf production, an effect that is expected to be felt soon through a contraction in production.
AgriBrasilis – Is a zero-tariff policy on beef imports a good solution?
Pimentel – No. Brazil has the cheapest beef in the world, based on the weighted average among the principal global exporters, and it imports only 0.8% of its consumption. Of this less than 1% imported, 96% originates from within Mercosur, sourced from Paraguay, Uruguay, and Argentina, driven by high-income consumers seeking gourmet dining experiences. Nearly 4% comes from Australia, and a mere 0.02% from Japan. On average, imported beef in Brazil is 65% more expensive than the beef Brazil exports and 136% more expensive than the beef sold in the domestic wholesale market. Moreover, since Brazil is part of Mercosur, this beef enters the country tax-exempt. While the exemption is welcome, for it to be effective it should apply to products that are indeed subject to tariffs and hold significant weight in domestic consumption. It makes no sense to import goods that we already excel in producing.
AgriBrasilis – How is the Mercosur-EU agreement expected to impact the market?
Pimentel – It is expected to increase the level of regulatory requirements for Brazilian products.
AgriBrasilis – Will Brazil be able to comply with the EU’s new anti-deforestation laws?
Pimentel – Yes, particularly since European demand is very small—they purchase only 4% of the beef we export. This means that many producers will be able to meet European requirements.
AgriBrasilis – Following China’s recent suspensions of Brazilian beef imports, what is the future of exports to that country?
Pimentel – Brazil has the land, technology, climate, and aptitude for agricultural production, as well as the volume and competitive pricing that have made it a giant in nearly all commodities. It is expected to remain so—becoming increasingly efficient, productive, and sustainable. It remains for Brazil to continue working to maintain this status, while the rest of the world must come to better understand our production from within and recognize the significant impact of an industry that is, for the most part, large-scale, efficient, and sustainable.
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