October 13, 2008
Brazil's largest feedlot growth in 2007
Brazilian feedlot output grew 35 percent in 2007 (year-on-year), and 187 percent since 2002, according to a survey conducted on the 50 largest feedlots in the country (the majority located in Sao Paulo and Goi？？s), with the largest supplying 230,000 head (Agripoint).
Growth in 2007 was lower than forecasted as a result of rising input costs, low supply and higher prices for restocked cattle and volatility in the grown steer market. Average cost per kg gained was up 31 percent, while restocking costs increased 48 percent.
The majority of cattle were placed into feedlots in May and June, while cattle marketing were concentrated between September and October. Around 60 percent of the feedlots performed one cycle throughout the year, while 40 percent rotated between two to four times.
Average weight gain reached 1.5 kg/day, a rise of 3.4 percent year-on-year, with days on feed decreasing to 85 days, down 8 percent from 92 days in 2004. On average, finished animals weighed 510kg lwt, up 1.5 percent in 2006.
According to the survey, 58 percent of the feedlots projected increases for output in 2008, mainly as a result of higher grown steer prices, higher economies of scale (with lower fixed costs), long term planning goals, and to satisfy the parent company's (meatpacker) demand.