MLA says major processors with strong export businesses are driving genetic improvement by paying premium prices for quality animals, and using carcass grading as part of a reward system. Is the country really the threat to U.S. cattle producers that many believe? At the same time, Australia’s dominance in the formal beef trade is being challenged by new entrants, especially Brazil. Is the country really the threat to U.S. cattle producers that many believe? Augusto Semmelroth says there won’t be a huge wave of Brazilian beef hitting the US in the near future because of this limiting factor. And there, corn will always be fed first to the better “converters” — people, poultry and pigs. According to studies by the Brazilian Agricultural Research Corporation, at least half of Brazil’s pasture lands currently suffer from some level of degradation. Shipments to China have been on the rise since Brazil was granted market access to the country early in 2015, after a three-year embargo. “I wanted to learn from the best – not only in terms of production, but also markets and industry framework,” he says. A 9% increase in export volume, combined with an average US exchange rate of 69.5 cents enabled Australia’s beef export value to expand by 17% on 2018. While its herd is 8.5 times larger than Australia’s, it produces less than four times the amount of beef. Female age at conception is 24-30 months. For what's asked of them, Nelore cows are as good as any in the world. It is one of the most popular products because it contains more meat chunks that are rich in taste and full of spicy aroma. “We are at near-record price levels for cattle in Brazil, but if you look in US terms they are still much cheaper,” Semmelroth says. “There isn’t a tight and united industry like Australia and the US, with engaged producers and good industry bodies like Meat and Livestock Australia.”. So, as time goes by, Brazil's cattle-raising epicenter is moving north to the tropical frontiers — and away from the south where Brazilians have the best chance of producing “quality” beef through better feeding and breeding. “But there has been some talk that because the Brazilian currency has depreciated against the US dollar so much in the past 12 months, some exporters will still be keen to export beef above the quota, which incurs a tariff.”. The operation employs about 30 people, with up to 80 per cent of the beef produced sold domestically. This means that Australia is typically one of the three largest beef exporters alongside America and Brazil. The overall stocking density is 1.25head/ha. According to ABIEC, Hong Kong was Brazil’s biggest market in 2014, taking 26 per cent of its beef exports, with Russia the second largest at 20 per cent. The Brazilian Beef Exporters Association’s (ABIEC) 2015 annual report shows nutrition, fertiliser, labour and depreciation as the four largest costs for those “full cycle” operations (from breeding to fattening) . Most breeds familiar to Americans are available to increase the productivity of the Nelore cow. A NOTE ABOUT RELEVANT ADVERTISING: We collect information about the content (including ads) you use across this site and use it to make both advertising and content more relevant to you on our network and other sites. Do you prefer chicken or beef in your burger? Saudia Arabia also lifted its ban on Brazilian beef in November of 2015, and the Brazilian Agriculture Ministry predicts it will ship about 50,000 tonnes of beef there a year. The US recently approved fresh beef imports from Brazil after more than 15 years of negotiations, with individual Brazilian processing plants now undergoing US evaluation for sanitation and safety issues. And, average slaughter age is 36 months at about 1,100 lbs. “In my view it is a naive idea from Brazilians that it will unfold quite quickly – all these trade barriers take a long time to get listed … it won’t happen in the short term,” he says. If I were an Australian cattleman, I'd be shaking in my boots. However, while Australia sits behind Brazil in terms of volume exported, it betters its larger rival when comparing the total value of beef exports. In contrast, Australia produced 2.465 million tonnes in 2015, but drought is expected to decrease that by 10 per cent this year, to 2.185 million tonnes. Combine the lower productivity with the “quality” factors Americans prefer in our beef, and you can begin to see why Brazil won't put you out of business anytime soon. JBS S.A. is a Brazilian company that is the largest (by sales) meat processing company in the world, producing factory processed beef, chicken and pork, and also selling by-products from the processing of these meats. Brazil is now officially beef’s global bogeyman, on track to produce the most beef from the world’s biggest herd within the next decade. open market access for Brazilian beef are concentrated in Thailand and Taiwan. On a pound-for-pound basis Brazil can produce beef for 30-50% less cost than U.S. producers — and 85-90% less than Australian producers. Brazil is currently the largest producer of halal meat and has the potential to make inroads into Middle Eastern and other predominantly Muslim markets—especially with the region’s rising income levels coupled with higher rates of urbanization. We are an unforgettable dining experience. Australia has a competitive advantage over Brazil through its ability to capture demand and price peaks because of wide market access and free-trade agreements. Some producers are trying to mimic U.S.-style “fattening” systems and getting by. Brazil's advantage is its ability to produce beef at a low cost. It is headquartered in São Paulo. Start shaving those productivity factors off 190 million head and beef production/animal/year shrinks considerably. Australia/New Zealand Beef Price is at a current level of 4.402, up from 4.396 last month and down from 5.564 one year ago. Register, Join the conversation, you are commenting as Logout. . However in 2017, after 1.9 million pounds of Brazilian beef products were cited by USDA inspectors as “public health concerns,” the United States suspended importation of Brazilian beef. •DecisionAg is Australia’s definitive source of agribusiness news, views and analysis. Download the latest issue from the App Store now. Our group of burger-loving editors tasted them plain, served on a Martin's potato bun. Will Brazil be the competitive beef giant many believe? Bring up the subject of global beef trade, and inevitably the talk turns to Brazil. “Export is a good alternative for forequarter (lean) meat and the US processing industry is a large consumer of lean beef (for hamburgers).”. MLA’s recent Brazilian supplier snapshot explains “most crosses are between Angus and Nelore cattle, maintaining the heat, disease and insect resistance of the Nelore breed, whilst improving the animal performance and quality of Angus genetics”. Beef Market Trends in China November 2020 $ 3000 Plant-Based Beef Market Forecast, Trend Analysis & Opportunity Assessment 2020-2030 October 2020 $ 5000 Global Market Study on Organic Beef: Rising Demand for Protein-rich & Healthy Food Aiding Market Expansion October 2020 $ 4900 To join the conversation, please log in. And with 211 million head it has the second largest cattle herd in the world behind India, while in 2014 its 8.06 million tonnes of annual beef production was shaded by the United States’ 10.8 million tonnes. “But it is a long-term process, and we are unlikely to see the Brazilian cattle industry reaching the same efficiencies as the US and Australia in the next 10–15 years, in my view,” he says. So they will turn to a US-style feeder system with heavier cattle, or look to maintain their low-cost pasture based system.”. “Brazil has historically ranged from 15–25 per cent,” says Brazilian beef expert Augusto Semmelroth. While the operation is large for Brazil, Semmelroth says in terms of financial results, it is average. Cattle are something from the heart, it is a generational love and the area I have most of the interest and expertise on, so if I can leverage that on the rest of the operation, I can hopefully make a difference.”. Australian Rabobank analyst Angus Gidley-Baird says markets will dictate which production system dominates the Brazilian industry. The amount of information available to Australian farmers is a major difference between the countries. Now, 99 per cent of the Brazilian cattle herd is FMD-free, with the Government aiming to have the entire country FMD-free by May. Poll: Do you support human consumption of kangaroo? It is the elephant in the room when it comes to Brazilian beef. After five years in Australia it was time to return to the cattle business his family has been in since the late 1800s, with operations in Brazil and Paraguay. Rabobank predicts Brazil will add an extra one million tonnes of beef to international markets by 2024, giving it a 25 per cent share of the global beef trade. “Brazil had that as a competitive edge up until five years ago, but it is not really there anymore – if you keep farming the way you have for the past 40 years you will go out of business.”. “I am headed home to change the landscape of the Brazilian cattle industry – an ambitious proposition knowing how things operate,” he says. To get to the meat of the matter, we conducted a blind taste test comparing a burger made with standard-issue, grain-fed supermarket beef vs. one made with grass-fed beef (from Moveable Beast Farm) -- both of them 85-percent lean. Still, less than 2% of Brazilian slaughter falls into the “fed” category. “Having industry and private benchmarks to compare your business outcomes with others in the industry is so powerful, and it is still in its infancy in Brazil, it is not developed like it is in Australia,” he says. Sampaio says this is a good opportunity for both countries. “By not having full access to the US, Japan, Korea and some other areas, this restricts Brazil from about 50 per cent of where the main beef demand is,” he says. Coulotte/Culotte. Consistent availability is possible with production facilities strategically located throughout the U.S. and Canada. JBS is one of the leading processors of Certified Angus Beef® . The U.S. boasts about 97 million head. Tariffs on Australian beef into China will jump from less than 5 per cent to 12 per cent for six months, with increases also expected on whole milk powder as preferential tariffs are withdrawn. For example, Brazil once imported a large share of beef into the US under this rule. here. Answer: Brazil is crossbreeding, and with success, especially in the more moderate southern climates. You can find out more about our policy and your choices, including how to opt-out > Beef Round (1kg) (or Equivalent Back Leg Red Meat), Markets Price Rankings by Country of Beef Round (1kg) (or Equivalent Back Leg Red Meat) (Markets) See these data in table view The most recent foot and mouth disease case in Brazil was in 2006. “Brazil is still cheaper than Australia, and definitely cheaper than the US, but that gap has been narrowing a lot, because the cost of everything is going up,” Semmelroth says. Copyright © 2021. The picanha (also know as the coulotte or coulotte steak) is a hard-to-find cut of beef that’s well worth the search. Brazil's advantage is its ability to produce. A lot of the grass-fed beef sold in the U.S. now comes from Australia because it's cheaper and available year-round. Meat consumption will continue to grow in the region.”. After several trips south, it appears U.S. cattlemen have less to fear from Brazil today than most think. . MLA reports the growth of Angus genetics, with better carcass qualities, has grown considerably in Brazil, with artificial insemination playing a big part. Semmelroth says the Brazilian beef industry is following a similar trend to the local grains sector, which experienced impressive production gains through efficiency advancements about 15 years ago to become the world’s second largest producer. Australia has been able to send 30–35 per cent of its beef herd for slaughter annually since the 1980s, while the US has sat at 35–40 per cent during that period. “They are gradually improving the quality of beef, with crossbreeding and British blood, but they will never be producing the purebred type of herd that Australia has. The ability for the Australian industry to leverage strengths and mitigate weaknesses was also an eye-opener for Semmelroth. Rabobank’s recent Beefing up in Brazil report, written by Fontes, predicts by 2023 there will be nine million Brazilian cattle on feed, with fierce competition for agricultural land area coming from the ever-growing grains industry. “The intensification of Brazilian beef production is likely to become a serious endeavour due to the expected supply of corn and by-products, which will be plentiful,” he says. In 2015, Brazilian beef production amounted 9.56t million carcass-weight equivalent (CWE). Workers on farms supplying world’s biggest meat firms allegedly paid £8 a day and housed in shacks with no toilets or running water . Ox & Palm Corned Beef is made in Australia. • Direct beef imports comprised around 9% of the beef consumed in China in 2015. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. The corporation predicts this will cause significant efficiency and growth constraints for pasture-based beef production in Brazil, despite improving genetics and management efforts across the industry. Let’s talk China. However, these figures mask Brazil’s Achilles heel. “Not having access to those markets really hinders the opportunity for Brazilian exporters to maximise the money made from exports.”. In moving north, Brazilian cattlemen are also moving into a twilight zone of inadequate infrastructure, property rights puzzles and pervasive corruption. Cap, Top Butt Cap, Rump Cap, Top Butt Cap, Top Butt Cap Picanha. Tonnes overseas in 2014, Brazilian beef expert Augusto Semmelroth has headed home to run family! Inevitably the talk turns to Brazil Australia because it changes the product, and resistance. The better “ converters ” — people, poultry and pigs elephant in market. They expertly carve slices directly from the App Store now herded these cattle, but it is of! 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