September 26, 2008

The Brazilian Feedlotters Association has revised down the growth of cattle on feed in Brazilian feedlots for 2008 from 20 percent earlier this year to less than 6 percent as compared to the previous year.

Despite the slower growth this year, it is expected that feedlot output will increase as a percentage of total slaughter in 2008. Total feedlot numbers reached 3 million in 2007, out of the 44 million head slaughtered and this year's total slaughter is expected to reach less than 40 million head.

In the long term, feedlot numbers are expected to increase as the quantity of agricultural sub products used as feed increases and the industry focuses on higher productivity due to increased land competition from crops.

The revision comes as a result of lower feeder cattle supplies and rising input costs and is expected to recover in 2011.