In recent weeks, trade groups representing beef processors have lobbied the Ministry of Agriculture for permission to import live cattle from Paraguay to continue production amid limited livestock supplies. Supplies of cattle in Brazil remain limited.
Fernando Iglesias, an analyst with Safras & Mercado, said that Brazil’s tight supplies, caused by the slaughtering of cows and strong demand for beef in markets like China, has led companies to temporarily halt operations and furlough employees in states including Goiás, Rondônia, São Paulo, Mato Grosso and Mato Grosso do Sul, he said.
The price of cattle has risen sharply. "The supply is very limited," said Iglesias. "Currently, only meat processing enterprises that have permission to sell beef to China can afford to buy livestock." The situation affects the listed companies JBS SA, Marfrig SA and Minerva SA, which supply meat to the domestic and export markets.
Iglesias notes that next year the cattle population in Brazil may improve, and, apparently, the decline is already behind the peak. He predicts that in 2021 Brazil will send for slaughter 31.585 million head of cattle, up 0.4% from last year's level.
Source: https://www.thecattlesite.com/