Cattle slaughter grows 4% in the 3rd quarter

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Brazil slaughtered 8.35 million head of cattle in the third quarter, up 4% from the previous quarter and 0.5% over the same period last year, according to the Brazilian Institute of Geography and Statistics (IBGE). Tuesday.

Production reached 2.16 million tons of beef carcasses in the period, an increase of 8% compared to the second quarter and 2.1% compared to the same quarter of the previous year, according to the first results of the survey. Livestock Production.

Slaughtering and production of poultry and pork meat also advanced in the period, although the beef sector recorded the largest advance compared to the second quarter, the IBGE noted.

Increasing meat production in Brazil, the world's largest exporter of beef and chicken cuts, is being driven mainly by demand from China and other Asian countries, noted researcher Sergio de Zen, head of the animal protein research center at Advanced Studies in Applied Economics (Cepea), from Esalq / USP.

“China, not only China, but Southeast Asian countries are draining all possible protein there. But we have to note that the global economy, US and Europe, are growing, small but growing, ”De Zen told Reuters.

Although Brazil consumes most of its meat production, exports guarantee a significant portion of the demand.

On Tuesday, Agriculture Minister Tereza Cristina announced that 13 more Brazilian meat factories had been approved for export to the Chinese.

The day before, the government announced that Saudi Arabia has enabled eight new beef establishments.

Amid strong demand for beef exports, whose shipments reached an all-time high in October, prices for beef and beef are record levels in Sao Paulo, an important thermometer for the Brazilian market.

The quotation of the arroba of the fat bull engaged a bullish movement and surpassed the value of 180 reais for the first time in history, in the state of São Paulo, last Friday, according to data from Cepea. On Tuesday, it reached 183.30 reais, an increase of more than 7% in this month alone. In the year, the advance is over 25%.

According to the Cepea researcher, besides the demand, the beef sector still has a situation of low supply of animals ready for slaughter.

"The animal is not confined or grazed, since rainfall has been delayed compared to other years, is a complex movement ...", said the expert.

"There is a mismatch, begins to slaughter animals with weight below (ideal) ... With expectation of high price, producers begin to hold (animals), waiting for the animals to gain weight to be slaughtered," he added.

According to the IBGE survey, pork slaughter totaled 11.67 million head in the third quarter of 2019, an increase of 2.4% compared to last quarter and 0.8% compared to the same quarter of the previous year.

Cumulative weight of pork carcasses totaled 1.05 million tonnes in the third quarter, up 3.3% from the immediately preceding quarter and 1.1% from the third quarter of 2018.

With sales to Asia boosting business, Brazil's industry recorded pork export revenues of $ 149.6 million in October, the highest single-month value in the past two years, according to data from the Brazilian Animal Protein Association. (ABPA).

The poultry industry has also shown strength, with slaughter totaling 1.47 billion head in the third quarter of 2019, up 3.3% from the previous quarter and 3.1% from the equivalent quarter of 2018. , informed the IBGE.

The accumulated weight of chicken carcasses was 3.45 million tons in the period, an increase of 3.2% over the immediately previous quarter and 2.1% over the third quarter of 2018.

Source: Agrolink