The structural changes through which sheep production sectorhas been through in the last decades has had a direct effect in the prices of its the products. There was periods of decline and recent period of recovering. In this study we analyse the tendency of prices paid to the farmer in the state of Rio Grande do Sul for the main sheep products: sheep meat, lamb meat and wool, from 1973 to 2005, with emphasis on tendency, seasonal and price cycle characteristics. Based on primary data collected by EMATER-RS, it could be perceived that adjusted prices presented a tendency to decline between 1973 and 1994. However, the economic stabilization brought by the "Plano Real" and its consequences on the internal market made meat become the main sheep product, presenting considerable price increase from 1995 to 2005. It was also observed that this last period is characterised by a reduction in the intensity of inter annual and seasonal price variation. Thus, it can be said that after 1995 sheep production underwent adjustedprice recovering and market stabilisation, which increases profitability and reduces the risks of carrying out this activity.
Sheep production; farming prices; time series
