Brazil: The Evolution of Cattle Farming and the Sustainability Challenge

Lola Izquierdo, Agri Benchmark Beef & Alberto Menghi, CRPA | 16 December 2024

Brazil ranks as the world’s second-largest beef producer and a leading exporter, holding 27.7% of the global market. With a national herd exceeding 200 million, cattle farming is a cornerstone of the Brazilian economy and a major source of rural employment. The leading export position of Brazilian beef is due to the high level of competitiveness of its beef farms. In 2021, the international research network agri benchmark Beef calculated that the total cost of production in Brazil can range from a minimum of €239/100 kg of carcass weight (CW) on large typical farms (with up to 5,000 heads sold per year) to a maximum of €628/100 kg CW on small farms (with 35 heads sold per year). In comparison, typical EU farms produce beef at costs ranging from a minimum of €465/100 kg CW on medium-sized German farms (with an average of 285 heads sold per year) to a maximum of €699/100 kg CW on French farms (with 75 heads sold per year). Furthermore, over recent decades, the sector has grown significantly, supported by favourable government policies, technological innovations, and rising global beef demand. However, sustainability challenges are a major concern, with issues like deforestation, greenhouse gas (GHG) emissions, and land degradation at the forefront. Additionally, not all farmers have equal access to resources, meaning that modernization benefits often bypass small and medium-sized farms.

Key Technological Advancements Driving Change

A major shift in Brazilian beef farming has been the move from low-input, extensive grazing systems to sustainable intensification practices. Technology has played a pivotal role in improving productivity and reducing environmental impact, helping Brazil maintain its competitive edge. Key advancements include:

1. Enhanced Pasture Management: High-yield tropical grasses, like Brachiaria, have become central to boosting productivity. Suited to Brazil’s climate, these grasses improve cattle health, meat quality, and reduce costs. Innovations in pasture rotation and degradation control help preserve soil health and combat erosion, laying the groundwork for long-term sustainability.

2. Integrated Crop-Livestock Systems (ICLS): Integrating livestock with crops or forestry, particularly in crop-livestock-forestry systems (ICLFS), is emerging as a sustainable model. These systems increase land efficiency, promote biodiversity, and diversify farm income. Adding trees into the mix helps sequester carbon, provides shade for animals, and supports animal welfare, aligning with Brazil’s low-carbon agriculture goals and climate commitments.

3. Genetic and Reproductive Breakthroughs: Advances in breeding—especially with the Nellore breed, adapted to tropical climates—are enhancing the growth rates and efficiency of Brazil’s herds. Genetic programs now use sophisticated computational tools to select for traits linked to growth and environmental impact. Techniques like artificial insemination and in vitro embryo production boost herd productivity, although scaling remains a challenge, especially for small farmers.

4. Improved Feed and Supplementation: Brazil’s beef industry has made strides in animal nutrition, with mineral supplements and high-energy feeds ensuring year-round cattle health. Semi-intensive and feedlot systems accelerate weight gain, reducing emissions by shortening the time cattle spend on pasture.

Policy Support for Sustainable Intensification

Public policies have been instrumental in the beef sector’s progress. Two key policies are:

1. The Brazilian Forest Code: Updated in 2012, the code requires landowners to preserve portions of their land depending on the biome, limiting areas that can be cleared for pasture. The Rural Environmental Registry also enables government monitoring of land use and deforestation, balancing agricultural expansion with conservation.

2. The Low Carbon Agriculture Plan (ABC Plan): Launched in 2010, this plan supports low-carbon farming practices, aligning with Brazil’s climate goals. The ABC Plan promotes pasture recovery, no-till farming, and integrated systems, among other low-carbon strategies. The ABC+ Plan now extends these efforts, supporting technologies like advanced irrigation and bio-inputs.

Challenges Facing Small and Medium Farmers

Despite technological progress and supportive policies, sustainable intensification has not reached all farmers equally. Small and medium-sized producers, representing around 76% of Brazil’s agricultural workforce, face barriers in accessing financial resources, technical assistance, and knowledge for adopting new practices:

Limited Credit Access: Small-scale farmers often lack the capital needed to invest in technology. Credit programs like PRONAF offer loans for family farms, but stringent requirements can be prohibitive.

Technical Assistance Gaps: Smallholders may struggle to access the training needed to implement advanced practices, limiting their competitiveness.

Socio-Cultural Barriers: For traditional farmers, sustainable intensification may conflict with established practices. Changing these approaches requires not only financial support but also culturally sensitive education.

Environmental and Socioeconomic Impacts

Sustainable intensification has the potential to bring positive environmental and socioeconomic changes. By intensifying production on existing lands, Brazil can reduce deforestation pressure, helping to meet its climate targets of reducing emissions by 50% by 2030 and achieving carbon neutrality by 2050. Economically, sustainable practices can improve rural livelihoods and reduce poverty, provided that small and medium farmers are included. Integrated systems, such as crop-livestock-forestry, can create jobs and increase resilience in agricultural communities.

Conclusions

A robust support program is recommended to provide technical assistance for sustainable technologies, with a focus on smaller farms. Expanding access to microfinance and fostering partnerships between public and private sectors could drive innovative funding models to support sustainable beef farming.

In conclusion, while Brazil’s beef sector has made significant strides toward sustainable intensification, ensuring that these advancements reach all farmers is crucial. Continued investment in education, infrastructure, and financial support will be key to maintaining Brazil’s role as a leader in sustainable beef production on the global stage. How Brazil manages this transition will be vital to its environmental and economic future.

Sources:

MATS Case Study 10: Beef and policy coherence for sustainable development

Pereira, M.d.A.; Bungenstab, D.J.; Euclides, V.P.B.; Malafaia, G.C.; Biscola, P.H.N.; Menezes, G.R.O.; Abreu, U.G.P.d.; Laura, V.A.; Nogueira, É.; Mauro, R.d.A.; et al.

From Traditionally Extensive to Sustainably Intensive: A Review on the Path to a Sustainable and Inclusive Beef Farming in Brazil. Animals 2024, 14, 2340. https://doi.org/10.3390/ani14162340