Greater purchasing power for soybean meal in over 20 years benefits Brazilian pig farming.

Pig farming in Brazil is experiencing a favorable moment, with the purchasing power of soybean meal reaching its highest level in the last 20 years. Data from Cepea indicates that, in September, each kilogram of live pig sold allowed the purchase of 5.57 kilograms of soybean meal – a level higher than the historical average of 3.62 kilograms. This value represents the highest purchasing power since December 2004, when the exchange rate reached 6.49 kilograms.

Photo: Claudio Neves

The scenario is a result of the combination of firm live pig prices and a sharp decline in soybean meal. In September, the price per ton of soybean meal was R$ 1,660.53 in the Campinas region, 25.2% below that recorded in the same period last year and at the lowest nominal levels since 2020.

The surplus of soybean meal is linked to the intense soybean crushing in the country, stimulated by the high demand for oil for biodiesel, both in Brazil and in the United States. National soybean meal production for the 2025/26 crop year was estimated at a record volume of 45.93 million tons by Conab and 44.77 million by the USDA, with 20 million tons destined for domestic consumption and 24.8 million tons for exports. The ending stock is projected at 6.59 million tons, above the 5.46 million tons of the previous crop year.

With greater access to the main input for the activity, Brazilian producers strengthen their profit margin and increase the sector's competitiveness, even in the face of other historically high costs.