W8 Beef Update: Brazilian Beef Production Surges to Record Highs in 2023, Irish Calf Registrations Dip Amid Passport Delays

Published 2024년 3월 1일

In W8 in the beef landscape, Brazilian beef production in 2023 hit a record high of 8.91 mmt, marking an 11.2%YoY increase despite declining productivity. Investments in herd improvement, pasture management, and animal health drove this growth, with exports reaching 22.8 thousand mt. However, the increase in production led to a drop in domestic prices, with concerns arising among producers. Meanwhile, Irish calf registrations saw a significant decline of 19.3% YoY, with delays in passport processing identified as a contributing factor to the decrease.

Brazilian Beef Production Reaches Record Highs in 2023 Despite Declining Productivity

Brazilian beef production significantly increased in 2023, exceeding all previous records. Preliminary data from the Brazilian Institute of Geography and Statistics (IBGE) indicates that Brazil's beef production in 2023 reached 8.91 million metric tons (mmt), surpassing the previous record set in 2019. This represents an 11.2% year-on-year (YoY) increase and an 8.6% growth compared to the previous historical high. Exports also grew, reaching 22.8 thousand metric tons (mt), representing only 25.7% of total production. This growth is attributed to investments in herd improvement, pasture management, and animal health.

The number of cattle slaughtered in 2023 approached the 2013 record, with a total of 33.9 million heads. Notably, females accounted for over 40% of the total slaughter in several months, potentially reflecting discouraged breeders due to declining calf prices. Despite record production, average herd productivity, reaching 262.97 kilograms (kg) per animal, experienced a decline compared to 2021 and 2022. This decrease is attributed to a combination of drought in key producing regions and higher grain prices affecting confinement practices.

The substantial increase in beef production led to declining domestic market prices. The CEPEA/B3 Live Cattle Indicator and wholesale beef carcass prices in São Paulo fell by 12% YoY and 9% YoY, respectively. While Brazil's beef production in 2023 experienced impressive growth, the significant increase in supply has impacted domestic prices, raising concerns for producers.

Irish Calf Registrations Decline in 2024, ICBF Addresses Passport Delays

Data from the Irish Cattle Breeding Federation (ICBF) reveals a decline in calf registrations in Ireland during the initial months of 2024 compared to the same period in 2023. As of February 23, 2024, the total number of registered calves on Irish farms stands at 502.7 thousand head, representing a decrease of 120.4 thousand head compared to 623 thousand head, representing a 19.3% YoY decrease. Registrations for calves born to dairy dams have experienced a significant drop of 102.30 thousand head, indicating a decline of 22.5% YoY.

The National Genotyping Program (NGP), responsible for issuing passports for calves, has encountered delays in processing samples. This has been identified as a potential contributing factor to the decline in registrations, as some farmers may be waiting for passports before completing the registration process.