Rabobank projects substantial growth in Brazil feedlot sector


Where’s the beef? According to a new report from Rabobank, meeting growing global demand for protein in the future means more of the world’s beef supply will come from Brazil.

The following article is from Drovers CattleNetwork:

by Mary Soukup, Editor

Already the world’s second-largest beef producer and largest exporter, Brazil’s beef industry remains “relatively inefficient by global standards, with below-average productivity and yield parameters” the report says. However as the country’s grain production continues to increase in the future, Rabobank expects a shift to a more intensified beef production chain and overall growth in the beef sector.

“Increased availability of feed grain will allow the beef industry to gradually improve both productivity and quality, thereby improving cost-efficiency and gradually achieving higher volumes, better quality, more consistent products delivered from Brazilian feedlots,” the report states.  

Why Brazil? The report says the country has an “unmatched position” with regard to expansion of corn and soybean production. However, infrastructure to deliver grain to export ports has not kept pace, making it prohibitive to export grain, especially corn, for many inland farmers. Instead, it is more cost-effective to use more of the inland-produced corn in domestic feed rations for the country’s cattle, hogs and chickens.

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Source:  Drovers CattleNetwork
Posted by Jami Howell

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