BRASILIA, BRAZIL – As the U.S. cattle herd continues to contract, Brazil’s herd is expected to increase by 4 percent this year and another 4 percent in 2022, though beef production is likely to fall in 2021 by 6 percent.
According to USDA’s Foreign Ag Service (FAS), the decline in production this season will give way to a slight increase (2 percent) next season.
FAS economists believe increasing beef prices will pressure domestic consumption leading to an overall decrease of 8 percent in 2021, but again a slight increase (2 percent) next year.
For pork, FAS is forecasting an increase of almost 2 percent in the pig crop next year to match a 2 percent increase in consumption.
Overall pork production levels should climb 5 percent this year and 3.5 percent next year, reflecting continued strong exports to China, improved domestic demand, and more stable feed costs.
Finally, Brazilian pork exports are forecast to increase 12 percent in 2021 and almost 7 percent in 2022 due to high global demand and a devalued Real.
(SOURCE: All Ag News)