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Stronger Competition For Cattle In Northern Brazil

03 December 2009
Meat & Livestock Australia

BRAZIL - Booming live cattle exports from the north of Brazil have been pushing up cattle prices by an estimated 10 per cent in the region (according to local industry sources), resulting in stronger competition for slaughter cattle typically purchased by processors.

In recent years, an increasing number of meatpackers have relocated operations to the northern region of Brazil (including the state of Pará) where extensive farming and lower land prices translate into lower cattle prices when compared to the south and east of Brazil (where more intensive farming and populated centres are located), according to analysts at Meat and Livestock Australia.

However, the higher live export turnover has been eroding the competitiveness of the region and tightening cattle supplies.

Total Brazilian live cattle exports have surged in recent years, increasing 19 per cent to 421,632 head during the first 10 months of 2009, when compared with the same period in 2008.

Out of the total, 95 per cent of live cattle exports have been shipped form Pará. Major markets for this state during 2009 were neighbouring Venezuela (74 per cent), Lebanon (25 per cent) and Egypt (1 per cent).

Live exports are the state’s fourth largest export income source.

TheCattleSite News Desk


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