Massive exports boost cattle competition in northern Brazil

Cattle prices in northern Brazil have increased about 10 percent due to booming live cattle exports, resulting in stronger competition for slaughter cattle.

An increasing number of meatpackers have relocated operations to northern Brazil in recent years, as extensive farming and lower land prices there translate to lower cattle prices when compared to the south and east of Brazil.

But the higher live export turnover has eroded the competitiveness of the region and tightened cattle supplies.

Total Brazilian live cattle exports increased 19 percent on-year to 421,632 head during the first 10 months of 2009.

Out of the total, 95 percent of live cattle exports have been shipped from the northern state of Para. Major markets for Para during this year were neighbouring Venezuela at 74 percent, Lebanon at 25 percent and Egypt at one percent.