April 6, 2022

Brazil adds more feedlots to meet importing requirements from China

Industry sources in Brazil said the growth in use of feedlots in Brazilian beef production increased to about a fourth of the country's overall slaughtered cattle due to rising demand from China, Reuters reported.

Cattle exported to China is sold for BRL 20 (~US$4.29; BRL 1 = US$0.21) to BRL 30 (~US$6.43) more per 15kg compared to regular cattle. China accounts for 50% of Brazilian beef exports.

The industry sources said increased demand from China has resulted in the more feedlots compared to grass-fed cows living on large estates.

Hugo Cunha, manager at Dutch nutrition company DSM, said China only purchases cattle that are 30 months old, and they can only do that by completing the cycle in confinement or on a semi-intensive system, adding that most confined cattle are directed to exporting slaughterhouses.

Brazil slaughtered 27.54 million head of cattle lats year, based on government statistics bureau IBGE data.  The DSM Confinement Census showed 6.5 million animals were finished in confinement in 2021, corresponding to 23.7% of cattle slaughtered from feedlots.

IBGE data showed Brazil slaughtered 29.7 million cattle in 2016. DSM data for 2016 showed with 3.75 million animals were raised in confinement.

More confinement facilities were added in 2019 after 22 Brazilian beef plants were approved for export to China in that year. There are 37 beef plants in Brazil approved for export to China based on industry and government data.

Brazil is the biggest beef supplier in the world.

-      Reuters