Current record levels in finished male prices are improving the business equation for backgrounders, even with calf prices on the rise. So far in April, the replacement ratio has reached its best level in 12 months, according to Cepea data.
The CEPEA/ESALQ indicator for finished male in São Paulo averages R$ 363.8, up 13% from January and 14% year-on-year in real terms. The value is just below the historical record set in November 2011.
At the same time, calf prices (8 to 12 months, in Mato Grosso do Sul) average R$ 3,316.7 in April, up 7.4% from January and 19.5% year-on-year, although still below the real peak recorded in 2021. With these values, producers need 9.12 arrobas to purchase a calf, the lowest ratio in a year, reflecting improved purchasing power for grass finishers.
