August 13, 2008

Brazil to strengthen position as world's top beef exporter

Brazil will continue to take the lead as beef exporter over the next decade despite a significant loss of pastureland, reported the Agra FNP, Brazil's leading agribusiness consultancy and commodities analyst.

Agra FNP technical director Jose Vicente Ferraz said Brazil's beef shipments should rise 32 percent by 2017 to 2.9 million tonnes, while rival producers such as Australia, the US and Argentina have little room for expansion.

"The outlook (for exports) for Brazil is subject to market conditions. The number could be even higher if there are supply problems on the international market and if Brazil gains access to new markets," Ferraz said during the launch of Agra FNP's newly released Anualpec 2008 yearbook on Brazilian meat and livestock.

The export rise will be ushered in by higher Brazilian beef production, despite fierce competition for farmland from other agricultural activities.

Agra FNP forecasts that cattle numbers will rise from 169.7 million head in 2008 to 183 million by 2017. Over the same time period, pastureland area is expected to fall by 17 million hectares from the 190 million hectares now in use.

Pastureland expansion into the North and Northeast of the country will not be enough to compensate for losses in the South, Southeast and Centre West as the potential expansion area is subject to competition from other crops.

So the trend is for these new areas to be taken over by other agricultural activities, said Ferraz.

Brazil has the most potential for production growth, but growth will have to come from productivity gains, he added.