For what's asked of them, Nelore cows are as good as any in the world. 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. That is not to say that it looks gross or unnatural, but it is certainly a noticeable difference in hue. “I am headed home to change the landscape of the Brazilian cattle industry – an ambitious proposition knowing how things operate,” he says. . . Brazil is also very active in Muslim markets and 90 percent of Brazilian packers are eligible to produce “Halal” meat. Year over year, globally imported beef increased in cost by 5.6% from 2018 to 2019. Coulotte/Culotte. However, these figures mask Brazil’s Achilles heel. ABIEC predicts exports of beef from Brazil will continue to increase along with the herd expansion in coming years, to 22.72 per cent of total production in 2019, and 23.59 per cent of production by 2024. ABIEC’s Fernando Sampaio says while it is too early to gauge the impact on Brazil exports, China is “a strategic market to support the future growth of our sector”. Why is Brazilian beef the way it is? “I see it remaining a predominately Bos Indicus herd into the future … that is why the potential for Brazil is in producing a good quality commodity (rather than premium) beef, from a crossbred (Bos Indicus cross Bos Taurus).”. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Brazil is home to 209m head of cattle, grazing 167m 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. So they will turn to a US-style feeder system with heavier cattle, or look to maintain their low-cost pasture based system.”. • Key competitors for frozen beef: – Brazil re-gained access to China mid-2015, and in 2016 already supplied almost 30% of imported frozen beef. 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. At the same time, Australia’s dominance in the formal beef trade is being challenged by new entrants, especially Brazil. By the way, no matter how you look at it, corn is an ugly sister to many other crops in Brazil. Should you as a U.S. cattleman be losing sleep over Brazil? open market access for Brazilian beef are concentrated in Thailand and Taiwan. Copyright © 2021. The Brazilian beef industry is finding itself in a Catch-22. “Even when the markets open, it is delusional to think Brazil will be able to just push large amounts of beef into them,” Semmelroth says. “On the external front Brazil should be able to close more trade agreements, and unfortunately Mercosul (the bloc of Brazil, Argentina, Paraguay, Uruguay and Venezuela) hasn’t been very successful with bilateral agreements so far. In 2016, the volume of direct imports grew 31% (YTD Jan-Oct), highlighting strong demand. . But it has been a long climb back from the dark days of Brazil’s foot and mouth and mad cow disease (BSE) outbreaks of early this century, which decimated the country’s beef exports after many countries immediately slapped bans on Brazillian beef. The Australian beef is similar in marble, but very different in terms of color. American Grass fed Black angus beef takes on the australian wagyu Picnha. “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.”. “Brazilian product has to get back in the market, and regain preference by customers and consumers,” he says. This means that Australia is typically one of the three largest beef exporters alongside America and Brazil. Yes, Brazil supports the world's largest commercial cattle herd — almost 190 million head. The U.S. boasts about 97 million head. The reason boils down to quantity vs. quality. •DecisionAg is Australia’s definitive source of agribusiness news, views and analysis. . Production, Supply and Demand Data Statistics: Meat, Beef and Veal 2017 2018 2019 Market Begin Year Jan 2017 Jan 2018 Jan 2019 Brazil USDA Official Our gauchos – cowboys of southern Brazil – slow-roast perfectly seasoned cuts of beef, lamb, pork, chicken and Brazilian sausage over a wood charcoal fire. Consistent availability is possible with production facilities strategically located throughout the U.S. and Canada. Bring up the subject of global beef trade, and inevitably the talk turns to Brazil. MLA says this is a 7.8 per cent increase from 2010. It seems everyone wants to know about Brazil. Informa Markets, a trading division of Informa PLC. “It is the norm to have volatility – if we (Brazil) were to apply the mindset we would be more prepared to take advantage of that.”, Semmelroth can’t wait to start sharing his knowledge from Australia. Average weight: 2 lbs. The Brahman has a high tolerance of heat, sunlight and humidity, and good resistance to parasites. 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. “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. here. “We have such a fragmented leadership in Brazil, all looking after their own interests, not a consolidated industry which is why it takes a long time for everything to change. . The beef trade will fall back on a set of more fundamental, long-term drivers – which look strong under a ‘normal’ economic growth scenario in China. ABIEC’s Fernando Sampaio says Brazil has the natural conditions – “availability of space and water, the largest cattle herd and modern industrial facilities” – to produce more beef. 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. Meat and Livestock Australia reports the average price of Brazil beef exports in November 2015 was A$5.98 a kilogram, a 10.4 per cent drop on the previous year because of the depreciation of the Brazilian real (currency) against the US dollar. After several trips south, it appears U.S. cattlemen have less to fear from Brazil today than most think. The most recent foot and mouth disease case in Brazil was in 2006. He has recently returned home to run his family’s beef operation, which has ranches in Brazil and Paraguay. It is headquartered in São Paulo. Putting U.S. Meat on the World's Table. 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. Register, Join the conversation, you are commenting as Logout. “Not having access to those markets really hinders the opportunity for Brazilian exporters to maximise the money made from exports.”. ABIEC executive director Fernando Sampaio says Russia and Hong Kong have been Brazil’s most important markets for the past decade. Australian Beef is the home of beef for Australians. Rabobank animal protein senior analyst Adolfo Fontes, who is based in Sao Paulo, says intensification, through lotfeeding, is the name of the game for the development of the Brazilian beef industry. Export volumes of Australian beef to China increased 18 per cent year-on-year, for the January to November period, to hit 135,046 tonnes, and the value was up 51 per cent year-on-year for January to October, at $814 million. Sampaio says this is a good opportunity for both countries. The Brazilian beef sector has traditionally benefited from abundant grazing land for grass-fed beef production, with ABIEC reporting about 11 per cent of cattle slaughtered in Brazil in 2014 came out of feedlots. “Farm hands earn roughly A$5000 a year and a farm manager between A$10,000 and A$20,000, depending on the operation. That means earlier feedlot entry, earlier slaughter and faster turnover. Brazil's advantage is its ability to produce. By last November Brazil’s total beef exports were up 10 per cent year-on-year, by 99,825 tonnes, with most of that increase headed to China. Only in the far south can corn yields and quality worthy of notice be produced. If I were an Australian cattleman, I'd be shaking in my boots. Ox & Palm Corned Beef is made in Australia. “But it is a trend that is there to stay, and it is hard to see that Brazil won’t be the largest beef producer, and exporter, in the next five to 15 years, because of the efficiency gains we will see in the medium to long term.”. Like Argentina's Pampas and the U.S. Great Plains, increased crop production raises land values, which pushes out livestock. 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. Workers on farms supplying world’s biggest meat firms allegedly paid £8 a day and housed in shacks with no toilets or running water . Don't have an account? It seems everyone wants to know about Brazil. Nothing but the best of Australia’s beef . “Export is a good alternative for forequarter (lean) meat and the US processing industry is a large consumer of lean beef (for hamburgers).”. As its commercial/export agricultural systems mature, especially in the south, cow pasture must compete for acreage with crops like soybeans, sugar cane (for ethanol), cotton, coffee, citrus and tobacco. Brazilian companies and slaughterhouses including the world’s largest meat producer, JBS, sourced cattle from supplier farms that made use of workers kept in slavery-like conditions, according to a new report. The numbers you see before the descriptions are the corresponding cut codes in both the North American Meat Processors Association Guide and Handbook Of Australian Meat. By meat type, global imports of frozen beef (53.3%) in 2019 eclipsed that for fresh or chilled beef … “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. In Australia, 34 per cent of the adult cattle slaughter in the last three months of 2015 was grain-fed – a decrease of 4 per cent year-on-year. Yet, while Brazilian beef exports grew 731 per cent from 1995 to 2010, it still sends just 20 per cent of its total beef production overseas. It is triangular in shape and considered to be the most delectable meats for the grill in Brazilian steakhouses. “As a result, it will be even cheaper to intensify production than to leave cattle on grass – particularly on soils in some process of degradation. . Also known as: Top Sirloin Cap, Top Butt Cap, Rump Cap, Picanha, (NAMP 184D, AusMeat 2091). 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 has historically ranged from 15–25 per cent,” says Brazilian beef expert Augusto Semmelroth. BRAZIL. Semmelroth’s family runs up to 15,000 cattle across four properties, including 4000 head in Paraguay. According to studies by the Brazilian Agricultural Research Corporation, at least half of Brazil’s pasture lands currently suffer from some level of degradation. “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. Beef Cuts: loins, shanks, briskets and chuck - if all the different cuts confuse you when deciding what to cook, this guide will help.. Texas de Brazil is much more than a steakhouse. MLA reports the growth of Angus genetics, with better carcass qualities, has grown considerably in Brazil, with artificial insemination playing a big part. For the past few years the Brazilian-born and raised beef analyst was based in Ballarat, working with markets company Ag Concepts. In Australia, the third largest beef exporter (after India and Brazil), two agencies work together to grade beef with two different ways of ranking marbling. Sorry we couldn't find a match for that, please try again, Join the conversation, you are commenting as, Damaged livestock ship banned from Australia. Brazil has no specific quota, and to avoid an out-of-quota tariff of 26.5 per cent, must stay below the 64,805-tonne “other country” quota. How many of you out there like burgers? The amount of information available to Australian farmers is a major difference between the countries. Trade. Increasing Brazil’s presence in beef export markets will be one of the strongest catalysts for change in the beef value chain, according to Rabobank. The reason boils down to quantity vs. quality. The overall stocking density is 1.25head/ha. Poll: Do you support human consumption of kangaroo? In Australia, carcass weight prices have averaged 550c/kg and above since mid-2015. 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. “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. Rarely do we hear the word beef these days without this South American protein powerhouse being mentioned in the same breath. They called it Churrasco, which is Brazilian barbecue. “But that does change the dynamic slightly because it changes the product, and the cost of production could go up. Rabobank’s Strengthening the Beef Value Chain report blames inefficiency, an undeveloped supply chain, low carcass weight and poor percentage of beef from each carcass as to why Brazil is not already the world’s biggest beef producer. Not tonight. 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. Brazilian beef is grass-fed, chronologically older, less tender and has a stronger taste than most American beef consumers will tolerate. 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. Start shaving those productivity factors off 190 million head and beef production/animal/year shrinks considerably. To join the conversation, please log in. Of course, 1-2% of 190 million cattle represents a significant amount by any standard. . In 2014, Brazilian beef export values hit a record high of US$5.8 million, up 8 per cent year-on-year. 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. Hampered by reduced national cattle herd size after years of drought, Australia’s beef exports to all markets fell dramatically to 1.039 million tonnes last calendar year, trade statistics released this morning by … . Sixth generation cattle farmer Augusto Semmelroth has headed home to Brazil with big plans. 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 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. How Victoria’s ‘traffic light’ border plan will work, How Victoria’s weaner calf sales have unfolded. And that’s something he plans to change when he acquires half the operation’s assets this year as part of the family’s succession plan. Yet, even riddled with inefficiencies and rising costs, Brazil is still able to strut its stuff on the global beef stage, as the world’s biggest beef exporter. “I will look into opportunities for not only cattle, but cropping and sugar cane and so on. In comparison, China was Australia’s fourth largest beef market in 2015, and Australia remains China’s largest beef supplier. . “Free-trade agreements with these countries will still give Australia a tariff advantage over Brazil for at least 10 years – tapping into a premium market is not an easy thing; it is a long process and requires the work Australia has been doing for 30 years.”. “As for Hong Kong, it is a commercial hub for Asia. “It had a big increase from the 1990s to mid-2000s, but because the herd has been growing since then, a lot of animals have been retained, so in the past 10 years the efficiency rate has declined back to 17 per cent.”. JBS is one of the leading processors of Certified Angus Beef® . Semmelroth is probably best placed to explain Brazil’s beef future and its impact on Australia. While the operation is large for Brazil, Semmelroth says in terms of financial results, it is average. 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