Brazil's cattle confinement expected to rise

Brazil's cattle confinement expected to rise

Brazil's 50 largest feedlots placed almost 10% less cattle under intensive fattening in 2010 compared to the year prior, but the industry should boost its number of confined cattle by 33% in 2011, according to a recent survey.

The country's top feedlots had 1.198 mill. cattle under intensive fattening last year, 9.4% less than the 1.322 mill. confined cattle in 2009, according to the research organization's new survey. Cattle farms expect to increase their number of confined cattle this year by 32.6% to 1.588 mill. head, despite the rising costs of inputs.

JBS SA led the way in 2010 in total cattle confinement with 168,772 animals, according to the survey. The company moved up from third in BeefPoint's cattle confinement rankings from 2009.

BRF Brasil Foods, which ranked ninth in cattle confinement among the top 50 sector businesses in 2009, moved up to sixth in 2010. Marfrig did not participate in the survey.
The rising cost of grain prices in 2010 deterred many industrial cattle farms from focusing more animals in confinement situations. But BeefPoint said that in 2011, higher prices for the end product will help convince industrial farmers to confine more cattle.

BeefPoint's survey showed that 28% of Brazil's cattle feedlots are in Goias state, 26% in Sao Paulo, 22% in Mato Grosso, 14% in Mato Grosso do Sul, 8% in Minas Gerais and 2% in Parana. Within those feedlots, 37% of the cattle are confined in Goais state, 26% in Sao Paulo, 18% in Mato Grosso, 12% in Mato Grosso do Sul, 6% in Minas Gerais and 1% in Parana.

The survey showed for feedlot managers that the peak time of year for slaughter and sale of cattle in 2010 was in October. BeefPoint forecasts that October should again be the focal month this year, but by confining more cattle producers hope to move more of their sales volume into September, escaping the peak of supply when their sales price can be knocked down.
Source: Brazil's BeefPoint de Confinamentos