The drop in Brazilian beef exports to China is causing a reduction in domestic prices for these products. The Supermarket Price Index (IPS), prepared by the São Paulo Supermarket Association (APAS) in partnership with the Foundation for Economic Research (FIPE), shows that between January and July of this year, acém recorded the biggest drop among beef cuts, with a decline of 3.90%, followed by alcatra, whose price fell 2.77%.
Other beef cuts also showed reductions during the period. Top sirloin dropped 2.45%, striploin fell 1.76%, eye of round decreased 1.39%, and tenderloin recorded a drop of 1.30%. The price reduction, however, was not limited to beef — pork also showed an accumulated drop of 8.11% for the year.
Among pork cuts, bone-in pork leg had the biggest drop, with a reduction of 13.52%, while bone-in loin saw its price reduced by 10.16%. APAS chief economist Felipe Queiroz stated that this drop represents important relief for Brazilian consumers' wallets, especially in cuts that are part of everyday life, such as acém and alcatra.
The market's response to the drop in exports to China is pointed out as the main responsible for this movement of reduction in domestic prices. The article indicates that the response comes from China, suggesting that the decrease in Chinese purchases of Brazilian meat is impacting domestic supply and, consequently, consumer prices.
