How Brazil Became the World’s Biggest Beef Exporter
Brazil is the world’s largest beef exporter, accounting for about 20% of the global market share in 2020. The country has a long history of cattle ranching and a favorable climate for raising grass-fed animals. Brazil also has a large domestic market for beef consumption, which drives the demand for quality and variety. In this article, we will explore how Brazil achieved this position and what are the challenges and opportunities for its beef industry.
Modernizing Its Cattle Ranching Sector
Brazil’s beef industry has evolved over time, from a subsistence activity to a modern and competitive sector. The first cattle were brought to Brazil by the Portuguese colonizers in the 16th century, and they adapted well to the natural pastures of the country. Cattle ranching expanded across the vast territory, especially in the central-western region, where land was abundant and cheap. By the 19th century, Brazil was already a major beef producer and exporter, mainly to Europe.
However, until the mid-20th century, Brazil’s beef industry was mostly based on extensive and low-productivity systems, with little investment in technology, genetics, health, or quality. The sector was also fragmented and poorly organized, facing sanitary barriers and low prices in the international market. The situation changed in the 1970s, when the government launched a series of policies and programs to modernize and incentivize the beef industry, such as credit subsidies, tax exemptions, infrastructure development, research support, and export promotion.
Diversifying Its Export Markets
These measures stimulated the adoption of improved breeds, artificial insemination, vaccination, feedlots, slaughterhouses, cold storage, and quality control. As a result, Brazil’s beef production increased significantly, from 3.7 million tons in 1970 to 10.5 million tons in 2020. The productivity of the sector also improved, from 57 kg of beef per hectare in 1970 to 144 kg in 2020. Moreover, Brazil diversified its export markets, reaching more than 150 countries in 2020, with China being the main destination.
Challenges And Opportunities
Brazil’s beef industry faces several challenges and opportunities for its future development. On one hand, the sector has to deal with environmental issues, such as deforestation, greenhouse gas emissions, water pollution, and biodiversity loss. The industry also has to comply with increasing social and ethical demands from consumers and civil society, such as animal welfare, labor rights, traceability, and certification. On the other hand, the sector has potential to increase its production and exports by investing in innovation, sustainability, quality differentiation, and value addition.
Brazil’s beef industry is a remarkable example of how a traditional activity can transform into a dynamic and competitive sector. Brazil has become the world’s biggest beef exporter by exploiting its natural advantages and adopting technological and institutional innovations. However, the sector also faces important challenges that require continuous improvement and adaptation to meet the expectations of a changing world.
World’s Biggest Beef Exporter: Brazil
Brazil was the largest beef exporter in the world in 2020, followed by Australia, the United States, India and Argentina. Brazil exported 2.6 million metric tons of beef and veal in 2020, accounting for 20 percent of the global beef exports. Brazil’s main destinations for beef exports were China, Hong Kong, Egypt and Chile.
Global Demand for Beef: Increasing
The global demand for beef is increasing, especially in emerging markets like China, India and Southeast Asia. According to USDA, the global beef consumption is projected to grow by 1.4 percent annually from 2020 to 2029, reaching 72.5 million metric tons by 2029. The main drivers of this growth are rising incomes, population growth, urbanization and changing dietary preferences.
Challenges and Opportunities for the Beef Industry: Environmental and Health Concerns
The beef industry faces several challenges and opportunities in the coming years, as environmental and health concerns become more prominent among consumers and policymakers. On one hand, the beef industry has to deal with issues such as greenhouse gas emissions, deforestation, water scarcity and animal welfare. On the other hand, the beef industry can also benefit from innovations such as alternative proteins, traceability systems, carbon sequestration and improved genetics. The beef industry will have to adapt to these changing market conditions and consumer preferences, while maintaining its competitiveness and profitability.
References:
https://www.etymonline.com/?term=beef
http://www.nydailynews.com/new-york/queens/guts-argentinian-chinchulini-intestine-delicacy-article-1.117306
https://beef2live.com/story-world-beef-production-country-0-106880
https://www.nationalbeefwire.com/world-beef-exports-ranking-of-countries
http://www.sciencenews.org/articles/20030531/food.asp
https://beef2live.com/story-world-beef-exports-ranking-countries-0-106903
https://www.ers.usda.gov/amber-waves/2019/july/brazil-once-again-becomes-the-world-s-largest-beef-exporter/
https://www.usda.gov/oce/commodity/projections/USDA_Agricultural_Projections_to_2029.pdf
Essential Topics You Should Be Familiar With:
