Relationship between the price of beef and the price of animals sold in Cuiabá, MT

The production cycles of the beef supply chain are influenced by several factors that affect the prices paid by the slaughterhouse to the producer and the retail prices of beef. The aim of this study was to verify the behavior and determine the relationship between the price per kg of the main cuts of beef and the price per arroba (a Brazilian unit of weight) traded in the Cuiabá region, in the state of Mato Grosso. The variables studied were the price per arroba of fat steers and fat cows in the Cuiabá region, and of the cuts: sirloin, rump, top round, chuck, shank, and brisket, in the state of Mato Grosso. A descriptive analysis was performed, determining the correlation coefficients and regression analysis, using data available in weekly bulletins from the Mato Grosso Institute of Agricultural Economics, from November 2013 to October 2016. High and significant correlation coefficients were obtained between the prices of the cuts and the price per arroba of steers and cows. The regression equations generated showed high coefficients of determination. The behavior of cut prices varies over time, as prices are affected by the price per arroba of finished cattle and finished cows. These, in turn, have their prices influenced mainly by the supply of breeding stock for slaughter, the climate, and economic factors. The prices of the studied beef cuts are strongly and positively related to the prices per arroba of finished cattle and finished cows, allowing their estimation from empirical models.