July 18, 2012

Brazil's confined cattle to rise 13% in 2012

According to Brazil's National Association of Confiners (Assocon), the country's confined cattle numbers is expected to rise 13% for 2012, to about 3.9 million head, from 3.46 million head in 2011.

The main driver for the growth of Brazil's confined cattle herd is recent advancements in development of degraded pastureland, which presently totals more than 100 million hectares, and is expected to increase the nation's secondary corn harvest, which could reach 35.7 million tonnes this year, reports Brazilian magazine, Dinheiro Rural.

Mato Grosso should register the largest growth among cattle confinement states this year, increasing production by as much as 39%, to 499,000 head in 2012, according to Assocon. The Goias state remains the largest in Brazil for confined cattle production.

Despite the growth potential of confined cattle in Brazil, some in the industry remain cautious about potential traps from input costs. Confinement must be treated as a different and riskier business than traditional pasture-raised cattle because of the heavy influence grain costs can play, said Luciano Vacari, superintendent of the Breeders Association of Mato Grosso (Acrimat).