As explained by the chief economist of Ativa Investimentos, in China (along with Honk Kong), is paying a high price for the foreign price of Brazilian beef. According to a recent comparison, the price of beef in the domestic market was $ 195, not foreign to $ 280, and paid in China $ 318.
With this goodwill payment practice, China increasingly absorbed beef exports in Brazil. By mid-2016, 20% of Brazil's beef exports are to China. Today, a proportion is almost 55%.
In the internal market
The wholesale beef kilogram has risen 23% since July (until yesterday), from $ 10.40 to $ 12.80. But, according to the economist, the price of the arroba (15Kg) in the futures market already implies a wholesale price of R $ 13.70. Considering an approximate 50% pass-through to retail, the end-of-year increase for consumers would be 15%, corresponding to a 0.4 percentage point (pp) impact on this year's IPCA. |
