… Calf crop production in 2020 is expected to increase by about 2%... The pig herd in 2020 is expected to grow by 3.5%...



Brazil: Low feed prices could expand feedlot cattle production


By Aerin Einstein-Curtis, Feed Navigator



Increasing global and domestic demand is expected to boost Brazil’s production of pork and beef, while low and stable feed prices may support the growth of feed use in cattle production.


The US Department of Agriculture (USDA) released details regarding livestock production in Brazil and the potential expansion in the numbers of cattle raised on feed in an agricultural specialist’s report​​.


Overall, the anticipation is that beef production in Brazil will increase 3% to about 10.5m metric tons in 2020, the specialist said. The growth is driven by exports – predominantly to China and Hong Kong – along with increased domestic demand.


There is an anticipation that meat production in a feedlot system could double in the next five years, he said. Confinement feeding has already grown by about 12%.


“Feedlot operations are projected to increase by over 5% in 2020 from 5.5m to nearly 6m head,”​ he said. “The increase is mostly attributed to higher cattle prices and lower feed costs. Most of the increase in feedlots are in the Center-West region, which is close to higher supplies of silage.”​


Pork production is expected to reach a record high of 4.1m metric tons based on stable feed prices, the strength of the export market to China and growing domestic demand, he said.


“Production factors for both beef and pork, such as stable feed costs due to a projected bumper soybean and corn crops, and increased carcass weights, are fueling optimism for both industries next year.”​


“The expected growth of the Brazilian economy in 2020 by over 2%, with declining inflation and unemployment rates, and higher consumer purchasing power, supports optimism in the animal protein sector in Brazil,” ​the specialist said. “However, the trade dispute between the United States and China and exchange rate fluctuations remain uncertainties for the industry.”​


Beef production ​


Calf crop production in 2020 is expected to increase by about 2%...


Swine stats​


The pig herd in 2020 is expected to grow by 3.5%...