World Crisis Putting a Brake on Brazil’s Cattle Industry

Brazil Feedlot The plans in Brazil are to increase the number of cattle in feedlots by 4.6%. which would be equivalent to a total of 1.673.500 heads, according to Beef Point, a Brazilian portal linked to the meat industry.

The number is the result of a survey among the top 50 Brazilian companies involved in feedlots and which last year fattened 1.599.465 cattle, which represented a leap of 27% over 2007 but below the 34.5% of 2006.

The survey showed some companies are not planning to increase the number of cattle in feedlots while others are thinking in reducing them.

Goiás in central Brazil is the state which leads in feedlots, followed by São Paulo, Mato Grosso, Minas Gerais and Paraná. Most of the production of feedlots is delivered to abattoirs between August and December.

The crisis suffered by the Brazilian meat packing industry, as a direct consequence of the world recession has triggered big changes and consolidation in the industry, while livestock companies and ranchers are looking for ways to cut risks when the moment of sale comes.

Feedlots became quite popular in 2004 when the boom of beef exports, (Brazil is the world's leading meat exporter), and livestock prices began increasing. Something similar happened in neighboring Argentina, but costs have become tighter and so have profit margins.

In related news. Chile has again opened its borders to Brazilian beef. The announcement was done by Brazilian Agriculture Defense Secretary Inácio Kroetz and Brazilian Beef Exporters Association Otávio Cançado following a visit to Chile.

In 2007 because of the foot and mouth disease outbreaks in Brazil, Chile banned beef imports from that country. Brazil since 2004 had become Chile's main supplier of beef totaling US$ 220 million annually, equivalent to almost 80% of the market.



  • Show Comments (4)

  • Mr Ismail Abdullah

    From Mr Ismail Abdullah
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  • DU 48

    Animals are not commodities
    Production systems that treat animals inhumanely threatens public health, chc.

    For somebody who constantly remind us of filthy, smelly Brazil, etc, perhaps you might
    want to consider the problems connected with factory farming- manure runoff, and uncontrolled use of antibiotics and hormones, for example. This is already a serious problem, not just in Brazil, though I’m sure you would be the first to criticise Brazil, wouldn’t you?( Assuming you don’t work for one of your country’s drug industries, of course).

    My point is that the treatment of farm animals reflects the industrial systems’s attitude towards farmers, consumers and the environment.
    Even in your mountainous domain, chc, consumers favour good animal husbandry, sustainable and humane practices.
    May I suggest you look at the Bio-Dynamic farming methods associated with the Anthroposophical movement, based in Dornach!

  • ch.c.

    The cow has finally become a unit of industrial production !
    But what should it be…in your view !
    Even milk is an industrial production, Chicken too, eggs too, goats too, cheeses too !

    And guess what…even grains became an industrial production :
    A) as a basic commodity
    B) and then transformed to many thousands of differents products for humans and animals feeding.
    Better yet, soyabean oil is used massively to produce…INKS !

    Where did you go to University ? SP ?
    No doubt, you too got a licence with mention “excellent”.
    But….but…but….in reality your licence was found in a detergent pack.
    You proved it…with your comments.

  • DU 48

    Slightly irritated or Mad… Cows facing a grim future of confinement and feedlots.
    The national certification and beef inspection for export (Sisbov) is going to be substituted by electronic tagging, according to Washington Novaes -Estado on line, Friday 10 July.
    While this export guarantee norm is required by the EU, Brazil appears to be going back on its word to safeguard quality standards. 17 million head of cattle will now be satellite controlled, but 19 million are still slaughtered without any kind of sanitary and environmental controls.
    One of the consequences of Margaret Thatcher’s deregulation of the meat processing industry, which included the reduction of hygiene inspectors in abattoirs in favour of ‘self -regulation’, was the outbreak of BSE in cows and its human equivalent Creutzfeldt-Jacob disease.
    Brazilian authorities seem to be ready to sacrifice food safety in the interest of industrial farming methods.
    The cow has finally become a unit of industrial production.

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