February 10, 2015

As the rebounding and expansion of the U.S. cattle herd stalls and global demand for beef increases, Brazil is responding by intensifying its beef production industry over the next decade. Brazil’s feedlot capacity is on pace to more than double to 4.5 million head in that time period, enabling the country to produce more than 9 million head of fed cattle per year according to the Rabobank report, Beefing Up in Brazil: Feedlots to Drive Industry Growth. Brail is already prominent in the global beef market, being the world’s second largest producer and its number one beef exporter, but inefficiencies in its production systems are hampering output. In order for Brazil to use its vast potential for corn and soybean production to drive growth in its beef industry, Rabobank warns that major improvements are needed in transportation, nutrition, and breeding at a cost of investment upwards of $500 million.

Just as the last 15 years saw Brazil emerge as a major soybean competitor to the U.S, the next 15 will likely see Brazil do the same on the beef market. To read more about what issues Brazil needs to address in order for its beef industry to reach its full expansion, and advances that are already occurring in areas such as breeding:

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