Brazil’s shortage to have global effect
Information from the National Association of Feedlots of Brazil indicates that cattle in feedlots will be down 5.3% from
October to December, compared to the same period in 2006.
“The trend for a decrease in slaughtered animals towards the end of the year is very clear. We are experiencing a shortage, and animals in feedlots will be less,” said Jose Vicente Ferraz, director of Agra FNP, a consulting firm in Brazil. He said farmers slaughtered heifers in the last three years, and the consequences are showing up now. Also, domestic beef prices were increasing, which would be reflected in export prices.
Analysts expect the price of export-quality Brazilian beef (already at record levels of about €1,625 per tonne) to continue to rise.
If the Brazilian shortage continues, it could push global beef prices higher, because Brazil accounts for 33% of the global export market.
