October 7, 2010

Brazilian cattle slaughter recovery fuelled by beef demand

Brazilian cattle slaughter during the 2009-10 fiscal year rose 8% to 29.34 million head year-on-year, due to the increase in domestic and international beef demand, according to recent data from the Brazilian Geography and Statistics Institute (IBGE).

The rise in slaughter and production (up 10% to 7.035 million tonnes cwt during the period) comes despite continued tight cattle supplies following the low profitability-driven liquidation (especially of females) between 2004 and 2008. The high turnoff was also influenced by rising international demand.

Although female slaughter rates have eased from the high levels between 2004 and 2008 as producers retain breeding animals in response to high young cattle prices and steer prices, the herd continues to shift north. Meanwhile the southern productive lands are increasingly used for cropping and other more profitable agricultural enterprises.