October 19, 2020

Brazil cattle herd grows first time in three years in 2019

IBGE, the Brazilian government's bureau of statistics said Brazil's cattle herd size grew in 2019 for the first time in three years, Reuters reported.

Brazil, the world's biggest exporter of beef, has a total of 214.7 million head of cattle in 2019, up 0.4% from 2018 as farmers retain female cows for breeding. Mato Grosso state saw a 5.1% growth of cattle herd, according to IBGE. Herd size declined in 2018 and 2017.

Mato Grosso accounts for 15% of the country's cattle herd. The state is where most of Brazil's livestock and grains are produced.

Mariana Oliveira, IBGE's livestock research supervisor, said last year there were less female cows sent for slaughter, which could mean a transition towards a high cattle cycle as producers retain females thanks to good market prices.

She said 2019 saw record beef exports particularly to China.

It remains to be seen if rains will benefit pastures in Brazil's centre-west regions. These areas account for 40% of Brazil's cattle production, according to the United States Department of Agriculture (USDA).

Rains are important to Brazil's cattle production as many are grass-fed. A drought this year delayed soybean planting at the beginning of the crop season. According to agribusiness consultancy AgRural, the current crop season was at its slowest pace in 10 years.

Beef exports from Brazil are projected to reach record highs in 2021 for a third consecutive year, thanks to high demand from China and demand recovery from other markets, said the USDA on October 9.

IBGE data also showed Brazil's poultry herd remained stable at 1.5 billion head last year, while pork herds dropped to 40.6 million head, a 1.6% drop.

-      Reuters