May 24, 2013
Cattle number on feed in Brazil's Mato Grosso forecast to increase
Assisted by expectations for lower grain prices and steady cattle prices, the cattle number on feed in Brazil's Mato Grosso state is forecast to increase by 19.6% in 2013.
This is according to the National Lot Feeders Association (ASSOCON).
High operating costs for lot feeders restricted any increase in total Brazilian numbers throughout 2012, with the total numbers of cattle on feed steady at 3.4 million head.
The Mato Grosso corn crop for 2012-13 is forecast to reach a total of 14.6 million tonnes, which with lower prices, is expected to assist an increased propensity to put cattle on feed. Corn is the major feed component in Mato Grosso feedlots with a typical feed ration reportedly containing up to 47% corn. According to Mato Grosso Economy Agricultural Institute (IMEA), corn prices during May are expected to decrease 10% on-year.
The sustained expansion of cropping enterprise throughout Mato Grosso state continues to put pressure upon cattle production, resulting in the expansion of lot feeding. Mato Grosso state is the largest beef producer in Brazil, with around 29 million cattle. In 2012, cattle on feed for Mato Grosso totalled 880,000 head, accounting for only 3% of the total herd in the state.