Brazilian Cattle Ranchers Losing Money Despite Growing Exports

Brazilian beef exports totaled US$ 295.8 million in June, 33% more than in June, 2003. Nevertheless, the situation of cattle ranchers has deteriorated.

According to a study released by the National Confederation of Agriculture and Livestock (CNA) and the University of São Paulo’s Center of Advanced Studies in Applied Economics (Cepea/USP), the prices ranchers are paid for fattened stock fell 11.3% between January and May, while their costs rose 4.29%.


The president of the CNA’s Permanent National Beef Cattle Forum, Antenor Nogueira, informed that, in reaction to the loss of income, ranchers spend less on inputs, which jeopardizes productivity and the sector’s market share.


“With the reduction in investments comes the deterioration of ranches and a decrease in the calving rate,” he explained.


The downward trend in the income of the sector has been evident since the second half of 2003.


“Brazil’s annual per capita beef consumption was 42 kilograms (93 lbs), and now it’s around 37 kilograms (82 lbs). The space we lost has been occupied by other types of meat,” Nogueira affirmed.


ABr

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