October 3, 2007

Brazil beef production cost lowest among 14 countries

Brazil has the lowest beef production costs among 14 countries included in the Agri Benchmark network, a global network of farm economists, the Brazilian-based National Agriculture Confederation, or CNA, reported on Tuesday (October 2).

According to a monthly CNA study in conjunction with the Centre for Advanced Applied Economic Studies, or Cepea/Esalq, Brazilian beef prices are more competitive on the global market because Brazilian cattle farmers have lower costs than European countries in general.

The study shows that cattle ranchers in Brazil spend at most US$180 to produce 100 kilograms of beef. On the other end of the spectrum, cattle ranchers in Austria shell out US$970 per 100 kilograms produced, the highest cost producers in the study.

Production costs in one of Brazil's main rivals of late, the UK are quoted around US$843 per 100 kilograms, according to the CNA study.

Brazil also produces sufficient volume of bovine beef to supply the domestic and export markets, said CNA. Brazil is the world's leading beef exporter.

Beef production costs in Brazil have risen roughly 7.5 percent so far this year, said the study, while cattle ranchers' revenues climbed 8.73 percent.

CNA said that local beef prices per 15 kilograms have risen 16.3 percent so far in 2007. Current prices are around 61.44 Brazilian reals (US$61.44) per 15 kilograms.