In response to rising global beef demand, Brazil is set to step up the rapid intensification of its beef production sector over the next ten years, enabling the industry to expand into higher-value export markets. According to its latest report “Beefing up in Brazil: Feedlots to Drive Industry Growth,” the Rabobank Food & Agribusiness Research (FAR) and Advisory group expects Brazil’s feedlot capacity to more than double to 4.5 million head, turning out over 9 million head of fed cattle annually, and increasing fed beef production by approximately 2.5 million tons per year by 2023.
“The opportunities for Brazilian beef producers, feeders, processors and exporters appear very bright,” explained Rabobank Analyst Adolfo Fontes. “Expected improvements in productivity and quality in the beef industry will help Brazil increase its presence in high-value export markets such as Europe, Japan and Korea.”
Brazil is already the world’s second-largest beef producer and the largest exporter. However, the industry remains relatively inefficient by global standards, with below-average sector productivity and yield parameters, suggesting significant opportunities exist for improvement.
“Brazil is uniquely positioned to fulfil this need, due to the country’s unmatched potential for expanding corn and soybean production—the two most universally-used ingredients for animal rations,” explained Rabobank Analyst Renato Rasmussen.