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The demand for chicken meat in Brazil usually has a cyclic behavior. There is an increase in the months before the holidays in the end of the year and a decrease in January and February, when the population has tighter budgets, reflex of the schools returns, tax payments and others.
With the decrease in the demand, the offer pressure reduces the average prices in this period of the year. However, the scenario is different in the beginning of 2019.
The main cuts prices have been increasing significantly. The skinless boneless breast, for example, which was being negotiated at R$7,60/kg in the last week of February, has already increased to R$ 7,90/kg, a growth of 3,9%.
“Good part of this price maintenance is reflex of the producer’s strategy, adopted in 2018, to adjust the volumes accordingly to the local market demand. Besides this, the meat prices are influenced by the increase registered in the production costs”, says KIT International Trade Marketing supervisor, Giordano Fiorentin.