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Brazil’s cattle farming becomes more competitive in international markets
According to data released by the Brazilian Ministry of Agriculture, since January 2024, Brazil’s exports of grains, soybeans, meat, forest products and sugar products have increased. Especially in September, when the export volume of the above products hit a record high. (From World Food Network)
The Ministry of Agriculture pointed out that Brazil’s agricultural and livestock industry has achieved such remarkable trading results mainly due to its competitive advantages in the international market. Brazil has a stable political environment, numerous ports and rich products, which makes it popular in the international market, especially in Asian countries.
The significant growth in demand for Brazilian meat and soybeans in Asian countries has directly improved the competitiveness of Brazilian products. A spokesman for the Brazilian Trade Association said that with the changes in the international political and economic environment. Brazil’s export trade volume is expected to increase further.
Basic situation of the development of Brazil’s domestic beef cattle industry
The beef cattle industry is the pillar industry of Brazil’s animal husbandry, and the beef cattle industry is also one of Brazil’s main industries. According to data from the U.S. Department of Agriculture. Brazil’s beef cattle inventory in 2023 will be 194.37 million heads, a year-on-year increase of 0.30%. Brazil’s beef cattle output in 2023 will be 48 million heads, a year-on-year increase of 0.34%.
Cost Analysis of Beef Cattle Farming in Brazil
First, let’s look at the feeding model of Brazilian beef cattle. About 90% of Brazilian beef cattle are fattened by grass feeding on tropical and temperate grasslands, about 6% are fattened by high grains about 120 days before slaughter, and 4% are fattened by grazing with a small amount of supplementary feeding. Under this market model, the market age of beef cattle is concentrated at around 18-24 months, and the market weight remains at around 550 kg.
Except for the last 4 months of concentrated fattening, the rest of the time is spent on the pasture. Fattening farms generally purchase calves that are 6-8 months old, usually weighing 180-220 kg, and the selling price is 9-12 reais/kg. During the concentrated fattening period, each cow consumes 10-15 kg of complete feed per day. During the 6-12 months of pasture life, only in the dry season or when the grass quality is poor, each cow is supplemented with 1-2 kg of concentrated feed per day, and almost nothing at other times. That is to say, the main cost of fattening beef cattle under this model comes from the purchase cost of calves in the early stage and the feed cost of concentrated fattening in the last 4 months.
Secondly, Brazil has excellent geographical and natural conditions. Whether it is corn or soybean meal, the market price is generally low, and the cost of complete feed is also significantly low. Depending on the formula, the cost of complete feed in Brazil is 1.5-2.5 reais/kg, equivalent to US$0.27-0.45/kg. Calculated based on a fattening cycle of 120 days, the total feed cost is less than US$570/head.
China’s feed processing machinery exports to Brazil continue to grow
Family farming plays an important role in Brazilian agriculture, producing 70% of the food consumed on Brazilian tables. At present, the mechanization level of Brazilian family farming is about 12%. And family farming is a large contributor to the entire agricultural production. There is an urgent need for agricultural mechanization. Representatives of the Northeastern Alliance of Brazil introduced the agricultural and agricultural mechanization situation in the northeastern region of Brazil. The planting area in the northeastern region of Brazil is very large, accounting for about 55% of all family farmers in Brazil. But the current level of agricultural machinery is generally low, and only 0.2% of farmers use advanced agricultural machinery equipment.
From 2020 to 2024, the average annual export value of China’s agricultural machinery products is 8.7 billion US dollars. And the feed pellet machine manufactured by my company(Zhengzhou Songbai Machinery Co., Ltd) is an important type of product. We are willing to strengthen cooperation and exchanges with relevant parties in Brazil and make common progress.
