BRAZIL · BUSINESS
SLC Agrícola, a Brazilian farmland operator planting 860,766 hectares this season and listed on the São Paulo stock exchange (B3), said on Wednesday 11 November 2026 that it expects to sell 112,500 cattle in 2027. That is about 48% more than the 76,000 it expects to sell in 2026.
For US investors, who can trade the company through its ADRs (US-listed receipts) under the ticker SLCJY, it shows a soybean and cotton grower leaning harder into beef. The catch is that cattle earned thinner margins this year.
Key Facts
- Plan SLC Agrícola expects to sell 112,500 cattle in 2027, up from 76,000 in 2026.
- Margin Cattle gross margin (profit after direct costs) fell to 10.9% in the third quarter, from 18.7%.
- Share Cattle made 7.8% of third-quarter net revenue, or about US$25 million.
- Next SLC expects to keep its unit gross margin this year.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 74.2 points (November 2026 edition).
More: Brazil news in English, every day from The Rio Times.
What SLC Agrícola Announced
In its third-quarter results release, published in Porto Alegre on 11 November 2026, the company said it expects to sell 76,000 head in 2026 and 112,500 in 2027. It gave no revenue target for cattle in that document.
The business is small for now. Cattle brought in R$296.5 million (Brazilian reais, about US$53 million at PTAX, the central bank’s official daily rate, of R$5.5606 per US dollar on 11 November 2026) in the first nine months of 2026, or 4.7% of the group’s net revenue of R$6.26 billion (about US$1.13 billion).
In the third quarter alone, cattle revenue was R$140.9 million (about US$25 million), up 18.0% from a year earlier. The company sold 19,761 head in the quarter, 1.6% fewer than a year before.
Why Margins Are Thinner
Cattle prices are high, and the company sold each animal for R$7,105 (about US$1,278) in the third quarter, up 16.3%. But the young animals it buys to fatten also cost more, so its cost per head rose 27.3% to R$6,328 (about US$1,138).
Gross profit per head fell 31.8% to R$777 (about US$140), and gross margin dropped to 10.9% from 18.7%. The company says part of the gain from dearer cattle was absorbed by the higher cost of raising the animals.
Over nine months, cattle gross profit was R$33.0 million (about US$5.9 million), down 14.7%, at a margin of 11.1%. The company projects that its unit gross margin, the margin per animal sold, will hold for the year.
All conversions here use that rate. The Central Bank of Brazil publishes PTAX every business day.
A Farmer Moves Into Beef
The company’s planting plan for the 2026/27 crop year lists 8,920 hectares for cattle, out of a total of 860,766 hectares. The rest is mostly soybeans, cotton and corn.
Going from 76,000 to 112,500 head would make the cattle herd sold almost half larger in a single year. At the third-quarter price, 112,500 head would mean roughly R$799 million (about US$144 million), our own simple arithmetic and not a company forecast.
Our earlier report covers the quarter’s profit rebound: SLC Agrícola’s third-quarter results. Cattle add a second, slower earner beside the crops.
What It Means for You
Investors holding SLCJY get a company whose crop earnings swing with weather and commodity prices, now adding an animal business with its own price cycle. At this company, high cattle prices were outpaced by higher costs for young animals.
What Is Not Known
The company’s release does not state how it will reach 112,500 head, whether through new farms, more feedlots or more purchased animals. It also gives no 2027 revenue target.
Cattle prices and the cost of young animals will decide whether more head means more profit. The release calls the 2027 figure an expectation.
Frequently Asked Questions
How Many Cattle Does SLC Agrícola Plan to Sell?
The company expects to sell 76,000 head in 2026 and 112,500 in 2027. Its release calls the 2027 figure an expectation.
Is Cattle Profitable for SLC Agrícola?
Yes, but less than a year ago. Gross margin on cattle was 10.9% in the third quarter of 2026, against 18.7% in the same quarter of 2025.
Does SLC Agrícola Still Mainly Grow Crops?
Yes. Cotton, soybeans and corn drive most of its revenue, and cattle made 4.7% of net revenue in the first nine months of 2026.
Sources: SLC Agrícola, 3Q26 earnings release, 11 November 2026 (https://ri.slcagricola.com.br); Central Bank of Brazil, PTAX dollar rate, 11 November 2026 (https://www.bcb.gov.br).
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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