Logistics
Brazil’s Truck Obsession Keeps Rising as Railway Investments Fail
The share of railways in soybean transportation from farms to ports declined from 47% in 2010 to 33% in 2023, a study shows
International
Outlook
Record Harvest, Weak Real Poised to Drive Agribusiness Recovery
If the harvest proceeds as expected, farmers are likely to be in a better position to meet payment obligations in April and May
Commodities
Brazil Coffee Traders' Turmoil May Be Far From Over
Montesanto Tavares' protection request has highlighted the crisis faced by coffee trading companies, a working capital issue caused by an unprecedent price rally
The End of Submission Diplomacy: Brazillian Meatpackers Assert Their Power
Carrefour CEO apologized for a statement questoning the quality of Brazilian beef after meatpackers halted deliveries to the retail chain
Inputs
Boa Safra Cancels Orders Amid Payment Concerns
Boa Safra, Brazil’s largest soybean seed producer, has canceled orders from some distributors unable to provide sufficient payment guarantees. This decision affects major clients such as Agrogalaxy (AGXY3), controlled by Aqua Capital. In the third quarter, large retailers represented just 20% of Boa Safra’s portfolio, down from 40% last year. The company’s net revenue dropped 26% […]
Results
Marfrig to Distribute $434 Million in Dividends
Marfrig announced 2.5 billion reais ($434 million) in dividends, following a strong cash flow and record results from its subsidiary, the chicken giant BRF. Additionally, the 5.7 billion reais ($990 million) payment made by Minerva to Marfrig for the acquisition of 13 slaughterhouses in October will enable meatpacker to reward shareholders while reducing leverage from […]
Earnings
JBS Hits Record Margin in Brazil's Chicken Unit
In the U.S., Pilgrim’s Pride, another JBS subsidiary, also reported its best margin in seven years
Beef
Cattle Prices Surge in Brazil, Squeezing Meatpackers’ Margins
Since September, the cost of livestock has skyrocketed by 50%, with no clear consensus among experts on whether prices have peaked
Freight
Trading Firms, Rumo in Tough Negotiations Over Take-or-Pay Contracts
Grain trading houses have taken a tougher stance in negotiations with railway operator Rumo regarding next year’s grain transport contracts, especially under the take-or-pay clause. Still, Rumo CEO Pedro Palma expressed confidence in the pace of contract signings in the coming months, stating that they will close at the prices desired by the company as […]
Food inflation
Strong Beef Demand to Offset Rising Cattle Prices, Minerva Says
Strong demand for Brazilian beef, especially from the U.S. and China, is expected to offset rising cattle prices in the medium term, preserving beefpackers’ margins, according to executives at Minerva, South America’s major beef exporter. Cattle prices in Brazil have risen by about 50% in less than two months, raising analysts’ concerns on profit margins in the industry. In […]