Source:  Andre Sulluchuco, MEATINGPLACE.COM, 5/2/11

In contrast to the American consumer’s experience, beef prices are returning to earth in Brazil after seeing a sudden increase in 2010, the Brazilian media reports.

Rump roast, for example, has dropped 10 percent from previous highs. Geographically, according a recent study by the Department of Statistics and Socioeconomic Studies (DIESSE), beef prices have fallen in 14 of 17 state capitals between January and February of this year, including Natal (6.91 percent), Rio de Janeiro (5.32 percent), Fortaleza (4.31 percent) and São Paulo (3.49 percent).

Not everything is dropping in price. Lesser cuts, such as ribs and oxtail, have seen small price increases this year. Also, beef prices are up in the state capital cities of Aracaju (3.43 percent), Porto Alegre (3.17 percent) and Curitiba (2.78 percent).

While U.S. processors are seeing prices driven by higher feed costs and tight supplies, Brazilian beef is in greater supply this year as pasture-land has recovered from last year’s drought conditions and the country’s primarily grass-fed cattle are healthier.

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