March 15, 2012

Brazil expects 3% rise in cattle herd this year

Brazil is expected to see a 3% rise in cattle inventories in 2012, aided by government financial support for cattle herd rebuilding, genetic improvement, pasture improvement, and sustained cattle prices.

According to the USDA's Brazil Livestock and Products Semi-annual 2012, by the end of this year, cattle inventories are expected to reach nearly 204 million head.

This year's cattle exports have been forecast to rise, with increased shipments expected to Venezuela and Suriname due to competitive prices. Despite of a drop in cattle exports in 2011, the Brazilian Meat Packing Industry officially submitted a request for a 30% export tax on live cattle exports to the federal government on January.

Beef production has been forecast to rise by 2%. Increased exports, continued growth in domestic demand and higher consumer purchasing power are expected to factor the growth in beef production.