Brazil cattle slaughter drops 7 percent in 2008

Brazil's cattle slaughter fell 7 percent to 29.9 million head in 2008, defying the increasing trend witnessed over the past 11 years, according to the Brazilian Institute of Geography and Statistics (IBGE).

The drop was mainly due to tight supplies and high steer prices, which increased 39 percent in Brazilian real terms during 2008 in Sao Paulo.

Cow slaughter decreased 10 percent last year to 9.5 million head, the largest decrease after the 50-percent fall in calf slaughter, reflecting Brazil's herd rebuilding efforts.

The cow slaughter accounted for 33.2 percent of adult cattle slaughter, down from a record 37.1 percent in 2006.

Cow and calf retention is also reflected in the price increases seen in 2008. Calf prices surged 49 percent in 2008, while cow prices reduced its gap from steer prices from a historic discount of 10 percent to 7 percent.

Total cattle slaughter in Brazil in 2008 is estimated at 38.9 million head, down 8 percent from the previous year, according to AgraFNP.