In a recent market report from Cepea, it has been revealed that the Brazilian livestock sector is expected to continue investments in 2025, albeit at a slower pace compared to the previous year. The report indicates that there will be increases in the supply of ready-to-slaughter animals and beef, as well as in demand, but these are anticipated to be lower than what was seen in 2024.

One of the key factors contributing to this slowdown in investment is the projection of a tighter purchase power among consumers in the Brazilian economy. This, coupled with the potential opening of new markets for exports, suggests that the upward trend in exports may also be slower in the coming year. Additionally, the impact of the exchange rate on production costs is expected to increase further, adding to the challenges faced by the sector.

The influence of the soaring dollar at the end of 2024 has already started to impact costs in the first months of the new year. As a result, the population, facing tighter budgets, is likely to opt for cheaper meat options, affecting the demand for higher-priced beef products.

In terms of international trade, China is expected to continue being a major buyer of Brazilian meat, with the United States, United Arab Emirates, and Chile also being significant markets for Brazilian beef. The recovery of the livestock sector in the US may lead to sustained high levels of purchases, while expansions in the Middle East and Chile are also anticipated.

Looking specifically at livestock farms in Brazil, production is expected to remain steady, albeit possibly advancing at a slower rate than in 2024. Data from IBGE up to September showed a 19% increase in the number of animals slaughtered, indicating a strong performance in the sector.

Overall, the outlook for the Brazilian livestock sector in 2025 suggests a mixed picture of opportunities and challenges. While investments are expected to continue, the pace of growth may be slower than in the previous year due to various internal and external factors influencing the market. Adapting to these changing conditions and exploring new avenues for growth will be crucial for stakeholders in the sector to navigate the uncertainties and capitalize on emerging opportunities.