Brazil cattle margins rise sharply despite higher costs Tight supply and strong exports boost farmer returns7 July 2025 7 July 2025 1 minute read 1 minute read By: By: Global Ag Media South AmericaCattle production margins in Brazil surged over the past year, outpacing rising operational costs, according to a recent report from Cepea. In the calf stage, margins per arroba produced rose 81.6% in the 12-month period ending in May. Between May 2024 and May 2025, the Effective Operational Cost (EOC) rose 11.8% for the calf stage and 33.1% for backgrounding and fattening, based on national averages. Despite these cost increases, strong price gains for both fed cattle and calves—especially between October and January—helped drive higher profitability. Cepea attributed the price gains to a limited supply of slaughter-ready animals and growing beef exports.