Brazil cattle on feed on decline

A survey among the top 50 Brazilian companies in feedlot business showed that the original plan is to increase the number of cattle in feedlots by 4.6 percent, but the companies have now backed out of the plan.

The 4.6-percent increase would be equivalent to a total of 1.67 million head of cattle. Some surveyed companies, however, have now decided not to increase the number of cattle on feed while others plan to decrease them.

Last year, the companies fattened 1.6 million head of cattle, up 27 percent over 2007 but below the 34.5 percent of 2006.

The world recession has triggered big changes and consolidation in the Brazilian meatpacking industry, while livestock companies and ranchers are looking for ways to reduce risks during sales.