Brazil Beef insights

Biogénesis Bagó was chosen to provide the new national bank with antigens and vaccines against foot-and-mouth disease for Brazil, a country that is a global leader in beef production, through an alliance with the Technological Institute of Paraná.

According to reports from Brazil's "EXAME" magazine and "Folha de S.Paulo," this will be the first time since the 1960s that Brazil has topped the USDA's statistical rankings, with the United States previously holding the top spot. According to USDA statistics, Brazil's beef production in 2024 is 11.85 million tons. This news came as a surprise to the Brazilian market. Previously, it was expected that Brazilian beef production would take two more years to surpass that of the United States. The increase in production efficiency and the growth in domestic and international demand have supported this growth. Additionally, it is expected that Brazil's cattle slaughter will also reach a historic high, reaching 41 million head. The leap in beef production is due to increased production efficiency. According to data from the Brazilian Institute of Geography and Statistics (IBGE), in 2020, the average weight of cattle carcasses was 262 kilograms per head. Data from the consulting firm Athenagro shows that in September, the average weight of cattle carcasses first reached 303 kilograms, with monthly beef production exceeding 1 million tons. However, the main driver of Brazil's meat production growth comes from external markets. As urbanization and income levels rise in many countries, the demand for protein is growing rapidly, and Brazil has become more active in entering the international market. During this period, especially starting in 2017, major producers and consumers began facing severe animal disease problems, which did not occur in Brazil, thereby enhancing Brazil's position in the international market. According to the Brazilian Meat Export Industry Association (Abiec), Brazilian beef exports are expected to break the 4 million ton carcass weight equivalent (CWE) record set in 2024, with an increase of 12%. Abiec reports that from January to November of this year, Brazilian beef exports reached 3.15 million tons, an increase of 18.3% over the same period in 2024. Export revenue reached $16.18 billion, an increase of 37.5% year-on-year. In the first 11 months of this year, Mainland China ranked first in imports of Brazilian beef, with 1.52 million tons imported, amounting to $8.08 billion, accounting for 48.3% of Brazil's total exports and 49.9% of total export value. The United States ranked second, with imports of 244,500 tons and $1.46 billion. Following were the European Union, Chile, Mexico, Russia, Egypt, Hong Kong (China), the Philippines, and Saudi Arabia. According to Abiec, compared to 2024, the purchasing volume in many markets has increased, with particularly notable increases in Indonesia (+579%), Palestine (+66%), Canada (+96%), the Philippines (+35%), Egypt (+56%), Mexico (+105%), Mainland China (+43%), Russia (+306%), Chile (+38%), and the European Union (+52%).

Rosario Livestock Market (Rosgan) analyzed global production and trade forecasts prepared by Rabobank, an organization considered the global benchmark in this field. According to Rosgan's report, based on data from the international organization, both Brazil and Argentina may be entering a cycle of declining beef production, although this does not necessarily mean a decline in