Transcript Brazilian Beef - Food Animal BioSciences

Group 2: Balazs, Bilal, Diana, Gao, Karla
Largest South American
country
 5th largest population worldwide (191million
people)
 Area: 8.5millionkm2 (Consisting of 47% of
area of the continent)
 9th largest economy in world





12% of fresh water in the planet
23% of population work in agri-business
Relatively low prices of land and labor
No extreme weather, no deserts
Largest commercial beef
herd worldwide
 2nd largest producer of the beef globally,
producing 9.7 million tones Carcass Weigh
Equivalent
 Exports beef to 180 different countries,
without any subsidies from government




In the international meat trade market, for
each 10kg of beef trade, 3kg come from
Brazil
Biggest beef consumer globally
Low cost of beef production, 60% lower than
Australia, 50% lower than USA





Roughly 150 million animals used for beef
production
Uses 140 million hectares of land
6.8 million direct or indirect employees
Pasture system is used for feeding animals
No. of beef processing plants and abattoirs
are 750
Two imported components:

Zebu Cattle
◦ Originated from the Indian Subcontinent

Tropical grasses
◦ Originated from Africa


1.8 million farms
Small size farms produce:
◦ < 500 heads/year

Medium size farms produce:
◦ >1000 heads/year
Commercial Farms
produce:

◦ >4000 heads/year


Crossing Breeding used in all regions of the
country
European breeds used for cross breeding:
◦
◦
◦
◦
◦
◦
◦
Angus
Red Angus
Simmental
Charolais
Polled Hereford
Limousin
Braunvieh
POPULAR BEEF BREEDS
Herd
208 millions of cattle heads
Import live animals
5.262
Carcase mean
weight: 233 Kg
Carcase yield
(Nelore) 51-55%
Grazing area: 172 millions Ha
Density: 1.2 animals/Ha
Offtake rate: 18.9%
Export of live animals
404 853
Export 16.5%
1.5 millions T.
Culling/year
39.5 millions
Meat Production
9.1 millions T.
In Natura
1.1 million T
71%
87 countries
Finished animals
in Feedlots
3.4 millions
(8.6% of culling)
Internal market (83.5%)
7.6 millions T.
40 Kg./year per capita
Russia 28%
Iran 16%
Egypt 12%
Others 44%
Industrialised
260 000 T
17%
108 countries
EU 27: 53%
USA: 12%
Others: 35%
Offal/others
173000 T
11%
62 countries
Hong Kong: 66%
Russia: 5%
Others: 29%




20% world’s beef export.
2006: Europe banned the use of antibiotics in
animal production  Brazilian packing plants
regulated their use (ionophores used as
growth promoters)
Implants or beta-agonists are forbidden
27 Brazilian states: only 16 are considered
foot-mouth disease-free areas, and 15 of
them are only free with vaccination
53 Million heads
Mostly european breeds - Criollo
Exports: average 20% (Currently 7%)
Production systems:
 Cow-calf operations: extensive grazing
systems
 Finishing: 90 days feedlots or semi intensive
on pasture with supplementary feeding.
CO2 and N2O Amazon deforestation…



In the last 20 years Brazil showed the greatest
growth rates in annual methane emission
estimates (2.12%/year)
Brazil showed the greatest growth rate of
beef production (4.01%/year).
Brazil: (−1.82%/year) of net increase in rate of
methane emissions per unit of product
(kilograms of methane/kilogram of beef)


Brazilian beef operations are mostly based on
perennial tropical grass graying systems.
The production cycle conducted exclusively
on grazing systems with only mineral
supplementation during the dry season leads
to older animals at market. This productions
cycle from birth to market averages 36
months.



Grazing combined with stocker phase
(concentrate supplementation) or feedlot
operations during the dry season (winter) in
the recent decade.
Birth: end of winter / beginning of spring
Weaning: beginning of fall, calfs are avg. of 7
month old.

1970
 78.6 million cattle
 124.4 million ha pasture /NATURAL/
anim/ha
 29.7 million ha pasture /CULTIVATED/

0.51
2006
 171.6 million cattle
 57.3 million ha pasture /NATURAL/
anim/ha
 101.4 million ha pasture /CULTIVATED/
 - 67.1 m ha natural pasture
 + 71.7 m ha cultivated pasture
1.08
INCREASED PASTURE
EFFICENCY
Millen 2011, Current outlook and future perspectives of beef production in
Brazil



1. Maintaining/Increasing
Production on reduced pastureland.
The recently overhauled “Forest Act”
(2012)
-force farmers to replant trees on
illegally cleared areas (80% of rural
properties in the Amazon should be
covered by forests).
-Farmers will be limited from
expansion
Expansion of cashcrop production
(soybean)
- has increased land prices
- forced cattle production to move to
the North



- While there is potential for further
increase in productivity, the industry is
heterogenous, uncoordinated and
strategically not well-defined.
Overcoming lack of infrastructure
- roads railways, processing plants to
comply with international standards
Manage public perception about of
deforesting the Amazon to create
grazing for cattle; GGE
Controlling greenhouse gas emissions

Delivering a traceable product
-requires huge investment.
-Control systems susceptible to bribery. It is possible for tags to be removed and cattle to
move without documentation.
-Address potential for abuse in biosecurity and disease control.

Manage the dynamic, aggressive global market
-Competition for market share will increase from Argentina, Australia with similar production
systems.

Overvaluation of the Brazilian Real, (1,7:1) with US Dollar –
- This has directly reduced the competitiveness of Brazil's low value commodity exports.

Managing breeding programmes
- Increased resistance from producers to changes in herd
genetics causing ''backyard'' deals.


Improving quality of product
-Currently producing lower value, slower growing and poor muscle grass- fed
beef cattle.
-Brazil is a top producer in terms of quantity , not quality
YET;
''The future portends market segmentation of meat demand based on quality
attributes.''


Future is uncertain: continuous government intervention in order to provide for domestic
market and control inflation.
Global share of exports will not increase in the short term because of government's objective
to control inflation.
CHALLENGES
- Gaining market access - Their image as a reliable supplier has been damaged.
-Increasing cow- calf herd which was reduced in the past years.
- Beef cattle production on less land- More land is being used for grain and oilseed
production.


Increasing investment especially to expand capacity to take advantage of the current
economic environment.
High export taxes – Government has removed rebates on exports.
A PERSPECTIVE FOR BEEF PRODUCTION IN ARGENTINA
A PERSPECTIVE FOR BRAZIL BEEF INDUSTRY








Herd sizes will increase – low production costs.
Intensifed farming will increase as a response to land pressure- produce relatively
cheap feed .
Brazil will benefit from trade liberalisation and removal of farm support schemes;
Will be able to deal with fluctuations in input costs
Intensifed farming will increase as a response to land pressure- produce relatively
cheap feed .
Diet will be more grain-based
Although feedlot numbers (currently 4%) will increase, they will continue to push
the ''natural product'' as a marketing initiative. (Thompson, 2008)
Increases of production will be offset by consumption as income increases; Net
surplus will decrease
Reduced pastureland
• Intensification
Maintain current growth
• Modernization
Keep leading and expand
market access
• Globalization
Feeding
Breeding
Perennial tropical grass
Grazing system or feedlot
INCREASED PASTURE EFFICENCY
Zebu cattle
Cross breeding
Large beef herd size




Management
Family holdings
Low cost of beef production
ABIEC(Brazilian Beef
Processors and Exporters
Association)
Economic sustainability
Environmental sustainability
Large domestic consumption
World’s leading exporter
2nd LARGEST PRODUCER
Challenges of land use and deforestation
GHG emission
Beef quality
Antibiotics
Implants or beta-agonists
BSE/FMD

Feeding:
•
Development in Center-West region;
Pasture subdivision;
Recovery and maintenance of soil fertilization;
Feed supplementation for critical periods

Breeding :
•
•
•
•
Animal genetic improvement
Develop specialized pedigree herds

Management:
•
•
•
•
Sanitary control;
Adjustment of the genotype-environment
Keep traceability

Quality
Achieve good feeding, breeding and management
•

•
Economic sustainability
Domestic:
•
•
International:
•
•
•

•
•
•
develop infrastructure and publication
Governmental subsidy and organizations’ investment
Build well traceability
Extend new market(Iran, Egypt)
Environmental sustainability
Produce more with less land
Utilize by-products: use the waste beef fat to make biodiesel
Develop regulations to control GHG and deforestation