Beef livestock in Brazil should have an increase in supply and recovery

The new report on perspectives for Brazilian agribusiness, produced by Rabobank, indicated that the supply of beef should increase with the recovery of domestic consumption. “It is worth remembering that there is an expectation about the future of policies to combat Covid-19 in China”, he comments. “Well, the foodservice sector was one of the most impacted by the zero tolerance policy applied by the government. In case of new lockdowns, with the Chinese spending more time at home (and consuming less away from home), added to the strong recovery in wholesale/retail pork prices, which increases the competitiveness of beef for part of the population, new opportunities for Brazilian beef may arise”, he adds. In this scenario, Brazil is well positioned not only for price reasons, but also for the supply potential. “Australia, which is historically a major beef supplier to the US, is set to have a year of increased supply and could impact competition in that market as well. The Middle ...