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Despite Record Beef Exports Brazilian Cattle Ranchers Can’t Make a Profit

For the third consecutive year, Brazilian cattle ranchers had a loss of revenue, in spite of record beef exports, reports the president of the Cattle Forum (Fórum Nacional Permanente da Pecuária de Corte), Antenor Nogueira.

The math is simple, says Nogueira. Operational costs rose 10.1% in 2004 and 6.41% in 2005 while the price of beef dropped around 12% during the same period. And in 2005 the appearance of foot and mouth disease made things worse.

Nogueira emphasizes that foot and mouth disease must be eradicated from all of South America as soon as possible if the region is to continue being an important player on the international beef market.

Nogueira says that Brazilian cattle ranchers, faced with falling income, are sending more cows to the slaughterhouse and that will have consequences.

He reports that in 2005, 40% of all the cattle slaughtered in Brazil were cows and that can only mean fewer calves in the near future.

Nogueira concluded by saying that the export sector outlook remains bright. Beef export revenue was up 22.4%, going from US$ 2.57 billion in 2004, to US$ 3.15 billion last year. And 2006 may be even better, said Nogueira.

Agência Brasil

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  • Show Comments (2)

  • Guest

    stupid projects
    if you know its wrong but you have to do a project about why its good what do you do?

  • Guest

    BUT….BUT……
    …read again how Lula and his Agriculture Minister are proud of their export performances ! Reading them….and everything is beautiful in Brazil !

    Well, well, just in reading what they say….not in the factual reality !

    And things will even get worse in 2006, in view of the continued appreciation of the Reais currency against ALL world currencies !!!!

    But Lula and his junkies MInisters DONT CARE AT ALL…as long as they can show incorrectly
    the real truth.

    This is a re- election year and they have to and they will provide positive statistics…by hiding the reality of their failures !!!!!!

    Nothing new. Same as the first 3 years of their mandate.

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