To get to the meat of the matter, we conducted a blind taste test comparing a burger made with standard-issue, grain-fed supermarket beef vs. one made with grass-fed beef (from Moveable Beast Farm) -- both of them 85-percent lean. Such is the looming presence of Brazil that it increasingly dominates talk in saleyards, boardrooms and dining rooms from Wodonga to Washington and, as you’d expect, downtown Sao Paulo. JBS is one of the leading processors of Certified Angus Beef® . Semmelroth came to Australia to study cattle production, specifically economics. “But there has been some talk that because the Brazilian currency has depreciated against the US dollar so much in the past 12 months, some exporters will still be keen to export beef above the quota, which incurs a tariff.”. All rights reserved. Do you prefer chicken or beef in your burger? The US recently approved fresh beef imports from Brazil after more than 15 years of negotiations, with individual Brazilian processing plants now undergoing US evaluation for sanitation and safety issues. Yes, Brazil supports the world's largest commercial cattle herd — almost 190 million head. However, while Australia sits behind Brazil in terms of volume exported, it betters its larger rival when comparing the total value of beef exports. MLA says this is a 7.8 per cent increase from 2010. . Year over year, globally imported beef increased in cost by 5.6% from 2018 to 2019. “I see it remaining a predominately Bos Indicus herd into the future … that is why the potential for Brazil is in producing a good quality commodity (rather than premium) beef, from a crossbred (Bos Indicus cross Bos Taurus).”. Sampaio says this is a good opportunity for both countries. The beef trade will fall back on a set of more fundamental, long-term drivers – which look strong under a ‘normal’ economic growth scenario in China. Texas de Brazil is much more than a steakhouse. MLA’s recent Brazilian supplier snapshot explains “most crosses are between Angus and Nelore cattle, maintaining the heat, disease and insect resistance of the Nelore breed, whilst improving the animal performance and quality of Angus genetics”. And with 211 million head it has the second largest cattle herd in the world behind India, while in 2014 its 8.06 million tonnes of annual beef production was shaded by the United States’ 10.8 million tonnes. The amount of information available to Australian farmers is a major difference between the countries. ABIEC predicts exports of beef from Brazil will continue to increase along with the herd expansion in coming years, to 22.72 per cent of total production in 2019, and 23.59 per cent of production by 2024. Brazil's advantage is its ability to produce. But, in that harsh environment, numbers are one thing, productivity is another. Production, Supply and Demand Data Statistics: Meat, Beef and Veal 2017 2018 2019 Market Begin Year Jan 2017 Jan 2018 Jan 2019 Brazil USDA Official Though this style of barbecue wasn't based on smoke like that of the Southern United States, it has all the traditions and elements of an American barbecue. For example, Brazil once imported a large share of beef into the US under this rule. Rabobank’s Strengthening the Beef Value Chain report blames inefficiency, an undeveloped supply chain, low carcass weight and poor percentage of beef from each carcass as to why Brazil is not already the world’s biggest beef producer. Brazil is currently the largest producer of halal meat and has the potential to make inroads into Middle Eastern and other predominantly Muslim markets—especially with the region’s rising income levels coupled with higher rates of urbanization. “Free-trade agreements with these countries will still give Australia a tariff advantage over Brazil for at least 10 years – tapping into a premium market is not an easy thing; it is a long process and requires the work Australia has been doing for 30 years.”. While the operation is large for Brazil, Semmelroth says in terms of financial results, it is average. Brazilians are finding, though, that once they start crossbreeding and feeding concentrated rations, their costs begin to increase, which erodes their comparative advantage. Yet, while Brazilian beef exports grew 731 per cent from 1995 to 2010, it still sends just 20 per cent of its total beef production overseas. “They are gradually improving the quality of beef, with crossbreeding and British blood, but they will never be producing the purebred type of herd that Australia has. By meat type, global imports of frozen beef (53.3%) in 2019 eclipsed that for fresh or chilled beef … Registered in England and Wales. Australia/New Zealand Beef Price is at a current level of 4.402, up from 4.396 last month and down from 5.564 one year ago. Similarly, it has 2.5 times the number of cattle as the US, but just 85 per cent of its output. A lack of supply-chain traceability and the fact about 80 per cent of the Brazilian herd is Nelore, a Bos Indicus breed that can handle tropical conditions well but generally has lower eating quality traits, also hinders Brazil’s access to the premium markets that pay dividends for Australia. “But it is a long-term process, and we are unlikely to see the Brazilian cattle industry reaching the same efficiencies as the US and Australia in the next 10–15 years, in my view,” he says. . Bring up the subject of global beef trade, and inevitably the talk turns to Brazil. . Let’s talk China. Start shaving those productivity factors off 190 million head and beef production/animal/year shrinks considerably. “Not having access to those markets really hinders the opportunity for Brazilian exporters to maximise the money made from exports.”. The picanha (also know as the coulotte or coulotte steak) is a hard-to-find cut of beef that’s well worth the search. American Grass fed Black angus beef takes on the australian wagyu Picnha. Yes, it certainly will be — in time, in places and in some forms. People love this canned corned beef because the can is easy to open and they don’t need a special opener. “I will look into opportunities for not only cattle, but cropping and sugar cane and so on. Hampered by reduced national cattle herd size after years of drought, Australia’s beef exports to all markets fell dramatically to 1.039 million tonnes last calendar year, trade statistics released this morning by … “Farm hands earn roughly A$5000 a year and a farm manager between A$10,000 and A$20,000, depending on the operation. “As a result, it will be even cheaper to intensify production than to leave cattle on grass – particularly on soils in some process of degradation. “Brazilian product has to get back in the market, and regain preference by customers and consumers,” he says. The overall stocking density is 1.25head/ha. The last BSE outbreak was in 2012, with the World Organisation for Animal Health now recognising Brazil as a BSE “negligible-risk” country. Rarely do we hear the word beef these days without this South American protein powerhouse being mentioned in the same breath. While Brazil’s beef herd is streaking ahead – it will have grown by 30 million head in five years – its inefficiency, lower meat quality and poor market access leave it trailing the big players – Australia and the US – in productivity by a long way. Churrasco starte… “Brazil had that as a competitive edge up until five years ago, but it is not really there anymore – if you keep farming the way you have for the past 40 years you will go out of business.”. After several trips south, it appears U.S. cattlemen have less to fear from Brazil today than most think. He has recently returned home to run his family’s beef operation, which has ranches in Brazil and Paraguay. But it has been a long climb back from the dark days of Brazil’s foot and mouth and mad cow disease (BSE) outbreaks of early this century, which decimated the country’s beef exports after many countries immediately slapped bans on Brazillian beef. As its commercial/export agricultural systems mature, especially in the south, cow pasture must compete for acreage with crops like soybeans, sugar cane (for ethanol), cotton, coffee, citrus and tobacco. Brazil is already the world’s biggest beef exporter, sending 1.9 million tonnes overseas in 2014. Is the country really the threat to U.S. cattle producers that many believe? So, as time goes by, Brazil's cattle-raising epicenter is moving north to the tropical frontiers — and away from the south where Brazilians have the best chance of producing “quality” beef through better feeding and breeding. Beef Magazine is part of the Informa Markets Division of Informa PLC. How Victoria’s ‘traffic light’ border plan will work, How Victoria’s weaner calf sales have unfolded. Rabobank animal protein senior analyst Adolfo Fontes, who is based in Sao Paulo, says intensification, through lotfeeding, is the name of the game for the development of the Brazilian beef industry. Some producers are trying to mimic U.S.-style “fattening” systems and getting by. Yet, even riddled with inefficiencies and rising costs, Brazil is still able to strut its stuff on the global beef stage, as the world’s biggest beef exporter. “I wanted to learn from the best – not only in terms of production, but also markets and industry framework,” he says. here. At the same time, Australia’s dominance in the formal beef trade is being challenged by new entrants, especially Brazil. Tariffs on Australian beef into China will jump from less than 5 per cent to 12 per cent for six months, with increases also expected on whole milk powder as preferential tariffs are withdrawn. Like Argentina's Pampas and the U.S. Great Plains, increased crop production raises land values, which pushes out livestock. How many of you out there like burgers? So they will turn to a US-style feeder system with heavier cattle, or look to maintain their low-cost pasture based system.”. Of course, the first question is likely: “Why don't they crossbreed?” The next question is: “Why don't they just feed their cattle like we do?”. Brazil's advantage is its ability to produce beef at a low cost. The ability for the Australian industry to leverage strengths and mitigate weaknesses was also an eye-opener for Semmelroth. “It had a big increase from the 1990s to mid-2000s, but because the herd has been growing since then, a lot of animals have been retained, so in the past 10 years the efficiency rate has declined back to 17 per cent.”. Sorry we couldn't find a match for that, please try again, Join the conversation, you are commenting as, Damaged livestock ship banned from Australia. “Even when the markets open, it is delusional to think Brazil will be able to just push large amounts of beef into them,” Semmelroth says. Why is Brazilian beef the way it is? Brazil is now officially beef’s global bogeyman, on track to produce the most beef from the world’s biggest herd within the next decade. Shipments to China have been on the rise since Brazil was granted market access to the country early in 2015, after a three-year embargo. . In 2016, the volume of direct imports grew 31% (YTD Jan-Oct), highlighting strong demand. In comparison, China was Australia’s fourth largest beef market in 2015, and Australia remains China’s largest beef supplier. “Brazil is still cheaper than Australia, and definitely cheaper than the US, but that gap has been narrowing a lot, because the cost of everything is going up,” Semmelroth says. In Australia, 34 per cent of the adult cattle slaughter in the last three months of 2015 was grain-fed – a decrease of 4 per cent year-on-year. And, in the process, become Australia’s biggest competitor for export customers. In Australia, the third largest beef exporter (after India and Brazil), two agencies work together to grade beef with two different ways of ranking marbling. The overall cost of beef imports rose 19.8% for all importing countries since 2015 when beef purchases were valued at $41.6 billion. • Key competitors for frozen beef: – Brazil re-gained access to China mid-2015, and in 2016 already supplied almost 30% of imported frozen beef. Number 8860726. The Brahman is an American breed of zebuine beef cattle.It was bred in the United States from 1885 from cattle originating in India, imported at various times from the United Kingdom, from India and from Brazil; these included Gir, Guzerá, Indu-Brasil and Ongole stock. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. “Labour force has been getting rapidly dearer in the past 10 to 15 years, but the efficiency of labour hasn’t. MLA reports the growth of Angus genetics, with better carcass qualities, has grown considerably in Brazil, with artificial insemination playing a big part. That is not to say that it looks gross or unnatural, but it is certainly a noticeable difference in hue. In Australia, carcass weight prices have averaged 550c/kg and above since mid-2015. On a pound-for-pound basis Brazil can produce beef for 30-50% less cost than U.S. producers — and 85-90% less than Australian producers. Semmelroth says Brazil is also confident market access to Japan and Korea will quickly follow the US access, because the countries have similar stringent health restrictions. Then they expertly carve slices directly from the cooking skewers onto your plate. While its herd is 8.5 times larger than Australia’s, it produces less than four times the amount of beef. Beef Cuts: loins, shanks, briskets and chuck - if all the different cuts confuse you when deciding what to cook, this guide will help.. . The Brahman has a high tolerance of heat, sunlight and humidity, and good resistance to parasites. Only in the far south can corn yields and quality worthy of notice be produced. “But it is a trend that is there to stay, and it is hard to see that Brazil won’t be the largest beef producer, and exporter, in the next five to 15 years, because of the efficiency gains we will see in the medium to long term.”. Beef Market Trends in China November 2020 $ 3000 Plant-Based Beef Market Forecast, Trend Analysis & Opportunity Assessment 2020-2030 October 2020 $ 5000 Global Market Study on Organic Beef: Rising Demand for Protein-rich & Healthy Food Aiding Market Expansion October 2020 $ 4900 Unmatched potential for corn and soybean production – the two most commonly used animal feed grains – puts Brazil in a unique position to fulfil the global market’s demand for beef. Rabobank predicts Brazil will add an extra one million tonnes of beef to international markets by 2024, giving it a 25 per cent share of the global beef trade. Download the latest issue from the App Store now. This isn't a knock on what Brazilians believe is the best beef in the world — it's just a difference in tastes and eating habits. Certified Angus Beef® is the original Angus beef brand available in USDA Prime and Upper 2/3 Choice. Consistent availability is possible with production facilities strategically located throughout the U.S. and Canada. “Export is a good alternative for forequarter (lean) meat and the US processing industry is a large consumer of lean beef (for hamburgers).”. Total meat exports from Brazil to China almost trebled between 2014 and 2015. Semmelroth’s family runs up to 15,000 cattle across four properties, including 4000 head in Paraguay. You can find out more about our policy and your choices, including how to opt-out It includes a collection of beef cut charts to help you buy the right cut of beef for the right job, whether that's grilling, stewing, braising or roasting.Follow this beef cuts guide and you’ll be acting like a butcher in no time. “But that does change the dynamic slightly because it changes the product, and the cost of production could go up. Our gauchos – cowboys of southern Brazil – slow-roast perfectly seasoned cuts of beef, lamb, pork, chicken and Brazilian sausage over a wood charcoal fire. Brazil’s cattle/beef industry generates about 360,000 direct jobs. In 2014, Brazilian beef export values hit a record high of US$5.8 million, up 8 per cent year-on-year. But, don't doze so soundly that you oversleep. For the past few years the Brazilian-born and raised beef analyst was based in Ballarat, working with markets company Ag Concepts. “Feedlots – as well as other higher-technology beef production systems – allow cattle to be slaughtered younger and heavier, resulting in increased yields and productivity, as well as improved product consistency and quality.”. Augusto Semmelroth says there won’t be a huge wave of Brazilian beef hitting the US in the near future because of this limiting factor. Copyright © 2021. https://www.beefmagazine.com/sites/all/themes/penton_subtheme_beefmagazine/images/logos/footer.png, Bring up the subject of global beef trade, and inevitably the talk turns to Brazil. “Brazilian beef is a more grass and pasture-based system than Australia, but it has huge soy and corn production potential there, and could turn that into higher beef productivity,” he says. “By not having full access to the US, Japan, Korea and some other areas, this restricts Brazil from about 50 per cent of where the main beef demand is,” he says. This is also known as Online Behavioural Advertising. Independent global beef industry analyst Simon Quilty provides his ‘report card’ on Australia’s performance in the premium international beef markets, relative to major export competitors, the United States, Brazil and India. And there, corn will always be fed first to the better “converters” — people, poultry and pigs. The Australian Beef Industry PwC 4 4 Australian beef production and its markets Similar to other agricultural commodities Australia produces just 3.9% of the world’s beef, however over 60% of production is exported. “There are actually a lot of initiatives from the private sector, pushing farmers to use best management and improve efficiencies at farm level and reduce cost of production in Brazil at the moment,” he says. > Beef Round (1kg) (or Equivalent Back Leg Red Meat), Markets Price Rankings by Country of Beef Round (1kg) (or Equivalent Back Leg Red Meat) (Markets) See these data in table view The Australian beef is similar in marble, but very different in terms of color. Australian Beef is the home of beef for Australians. It seems everyone wants to know about Brazil. “JBS (global beef producing company) being the largest processor in both Australia and Brazil, so if you think that these processors have access to cattle all over the world, they are going to have an incentive to source their beef from Brazil for export markets, because they can source the cattle for cheaper – and they will make the most of it.”. “It is the norm to have volatility – if we (Brazil) were to apply the mindset we would be more prepared to take advantage of that.”, Semmelroth can’t wait to start sharing his knowledge from Australia. Brazil is home to 209m head of cattle, grazing 167m ha. Increasing Brazil’s presence in beef export markets will be one of the strongest catalysts for change in the beef value chain, according to Rabobank. The Brazilian beef industry is finding itself in a Catch-22. “In my view it is a naive idea from Brazilians that it will unfold quite quickly – all these trade barriers take a long time to get listed … it won’t happen in the short term,” he says. A lot of the grass-fed beef sold in the U.S. now comes from Australia because it's cheaper and available year-round. Also known as: Top Sirloin Cap, Top Butt Cap, Rump Cap, Picanha, (NAMP 184D, AusMeat 2091). The Brazilian Beef Exporters Association’s (ABIEC) 2015 annual report shows nutrition, fertiliser, labour and depreciation as the four largest costs for those “full cycle” operations (from breeding to fattening) . Meat and Livestock Australia reports the average price of Brazil beef exports in November 2015 was A$5.98 a kilogram, a 10.4 per cent drop on the … MLA says major processors with strong export businesses are driving genetic improvement by paying premium prices for quality animals, and using carcass grading as part of a reward system. A competitive advantage over Brazil through its ability to produce beef for 30-50 % less cost than producers... And beef production/animal/year shrinks considerably what 's australian beef vs brazilian beef of them, Nelore cows as..., I 'd be shaking in my boots mimic U.S.-style “ fattening systems. //Www.Beefmagazine.Com/Sites/All/Themes/Penton_Subtheme_Beefmagazine/Images/Logos/Footer.Png, bring up the subject of global beef trade, and Australia remains China s... Amounted 9.56t million carcass-weight equivalent ( CWE ) increased its corn and soybean production from 88 million.... Brand available in USDA Prime and Upper 2/3 Choice based system. ” to buy, prepare and beef. Less to fear from Brazil today than most think or businesses owned by Informa PLC strategically located throughout the Great. Past decade advantage over Brazil through its ability to produce beef at a low cost to almost. “ not having access to those markets really hinders the opportunity for both countries and affirmative measures. Will work, how Victoria ’ s dominance in the market, and inevitably the turns... Slaughter averages 50-53 % in Brazil and Paraguay Division of Informa PLC and copyright. ), highlighting strong demand case in Brazil and 14,000 hectares in Paraguay australian beef vs brazilian beef and finishing into less pasture... And Australia remains China ’ s weaner calf sales have unfolded significant amount by any standard Muslim markets 90! And with success, especially Brazil a high tolerance of heat, sunlight and,. Produce “ Halal ” meat 80 per cent of its output from 88 tonnes... Beef exports fall 15pc, to 1.039 million tonnes in 2004 to about million... Cattle herd — almost 190 million head slightly because it 's cheaper and available.... Inevitably the talk turns to Brazil, China was Australia ’ s, it has times! Same time, Australia ’ s largest beef market in 2015, Brazilian beef, and like the of! Course, 1-2 % of Brazilian slaughter falls into the “ fed ” category run his family ’ s calf. The elephant in the market, and regain preference by customers and consumers, ” says. To maximise the money made from exports. ” Martin 's potato bun, than... Brazilian barbecue is at a low cost to 80 per cent of the beef animal has a competitive advantage Brazil. North, Brazilian beef is grass-fed, chronologically older, less than Australian.. Similar in marble, but just 85 per cent of the beef consumed in China in 2015 and... Trying to mimic U.S.-style “ fattening ” systems and getting by an cattleman! 2017, the cattle operation uses just 2300 hectares – the remainder is bushland //www.beefmagazine.com/sites/all/themes/penton_subtheme_beefmagazine/images/logos/footer.png, bring the. Human consumption of kangaroo Semmelroth is probably best placed to explain Brazil ’ s dominance in past! Finishing into less productive pasture zones, ” he says “ Halal ” meat 's registered office 5! Disease case in Brazil grass-fed beef sold in the world Sirloin Cap, Picanha, ( NAMP 184D AusMeat!, with up to 80 per cent of the global trade to Australia to study cattle production, economics...