Finance
Brazil surpassing US as top beef producer, easing global supply squeeze
Published by Global Banking & Finance Review®
Posted on January 7, 2026
5 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 7, 2026
5 min readLast updated: January 20, 2026
Brazil became the top beef producer in 2025, surpassing the US and easing global supply constraints, thanks to increased productivity and efficient cattle management.
By Ana Mano and Peter Hobson
BARRETOS, Brazil, Jan 7 (Reuters) - Brazil surpassed the U.S. as the world's top beef producer last year, according to market estimates, after the South American country beat output forecasts by hundreds of thousands of tons, easing a global supply squeeze and helping limit a surge in meat prices.
Brazil was already the biggest beef exporter, shipping meat worth almost $17 billion in 2025, according to government trade data released on Tuesday. Beef production numbers are not due until February, but analysts have recently raised their estimates. Farmers have been sending more animals to slaughter, cashing in on high export demand from countries including China and the U.S., where low supply has pushed beef prices to record levels.
Elevated slaughter typically leads to a period of low output as producers hold back animals to breed and rebuild herds. But productivity gains in Brazil may limit or even prevent a downturn, people in the industry say. They noted that farms have been inseminating cattle quicker, fattening them faster and slaughtering them younger.
"Ten years ago, the average age of cattle slaughtered in Brazil was five years," said Vinicius Barbosa, a commercial manager responsible for tens of thousands of cattle at the CMA feedlot in Barretos, about 260 miles (420 km) north of Sao Paulo. "Now it is 36 months and going rapidly to 24," he said.
Mauricio Nogueira, head of livestock consultancy Athenagro, said Brazilian beef production far surpassed his forecast in 2025. Output grew 4% for the year, where he had predicted a 2.7% drop. The increase of around 800,000 tons was about equal to total annual exports of Argentina, the world's No. 5 beef shipper.
Rabobank, which had expected Brazil's beef production to decline in 2025, now sees 0.5% growth to 12.5 million tons carcass weight equivalent. The U.S. Department of Agriculture in December raised its estimate for Brazilian beef output by 450,000 tons to 12.35 million tons.
If the official numbers confirm market estimates, 2025 will be the first year that Brazil's output will have surpassed U.S. production, which fell 3.9% to 11.8 million tons in 2025, according to USDA estimates, following years of drought.
FEEDLOTS, RISING CARCASS WEIGHT DRIVE OUTPUT
U.S. beef production will fall a further 0.9% to 11.7 million tons in 2026, the USDA said. In Brazil, the USDA and Rabobank project a decline in output, but Nogueira said rising productivity could actually boost Brazil's production by around 300,000 tons.
Almost 28% of cattle slaughtered in Brazil will be fattened in feedlots by 2027, up from 22% in 2025, according to consultants Scot Consultoria.
"Feedlots do in 100 days for cattle what pasture does in between 18 and 24 months," said Barbosa, adding that CMA's Barretos feedlot would process 80,000 cattle in 2026, up from 65,000 last year.
Brazil's booming corn ethanol industry is generating a byproduct known as dried distillers grains that has higher protein than corn and helps cattle fatten faster, analysts said.
Cows are becoming pregnant more often as farmers adopt more efficient insemination techniques, allowing producers to slaughter more animals without reducing herd size.
Scot Consultoria expects Brazil's pregnancy rate - the proportion of females that become pregnant during a breeding season - to rise to 54% in 2027 from an expected 50% in 2026.
Better genetics are also improving cattle growth and boosting meat quality, analysts say. And Brazil still has not matched the 90% proportion of cattle passing through feedlots as in the U.S., or Australia's 40%.
If Brazil's pregnancy rate rose to 66%, equivalent to neighbouring Argentina, the number of calves birthed each year would rise from an estimated 32 million to 40 million, according to consultants Datagro. The pregnancy rate in Canada is 96%, they said.
Government data show Brazil has 238 million cattle, well over double the 94 million in the U.S. Higher productivity would allow output to expand without increasing cattle numbers or the area of pasture land. That could ease one economic driver of deforestation of the Amazon rainforest.
Brazil's cattle herd is expected to grow just 4% between 2024 and 2034 while beef production increases 24%, according to Brazilian beef exporter group ABIEC. U.S. beef production will rise 3.5% and cattle numbers will grow 5% over that period, by USDA estimates.
BRAZIL KEY AS TOP PRODUCERS SCALE DOWN
Global beef prices will hinge on whether Brazil can avoid a production downturn this year.
The USDA expects output in the world's six biggest producers to fall in 2026 by a combined 2.4% - the biggest annual drop in decades - after rising 0.4% in 2025. These producers are Brazil, the U.S., China, the European Union, Argentina and Australia. The list excludes India, which the USDA names as one of the six top beef producers even though that country produces buffalo meat rather than beef.
The USDA expects Brazilian production to fall 5.3% to 11.7 million tons carcass weight equivalent this year. If Nogueira's estimates are confirmed and output rises instead to around 12.6 million tons, the decline in the top six producers would be just 0.2%.
"There has never been so much international demand for Brazilian beef," said Guilherme Jank, a Datagro analyst, adding that local beef packers have also ramped up capacity.
"We are witnessing firsthand a significant shift in how the beef cattle supply system works in Brazil, in terms of quality, scale, efficiency, and productivity," he said.
(Reporting by Ana Mano in Barretos and Peter Hobson in CanberraAdditional reporting by Ella Cao in Beijing and Tom Polansek in ChicagoEditing by Brad Haynes and David Gregorio)
Beef production refers to the process of raising cattle for meat. It involves breeding, feeding, and managing cattle to produce beef for consumption.
A global supply squeeze occurs when the demand for a product exceeds its supply, leading to increased prices and potential shortages in the market.
Beef export is the sale and shipment of beef products from one country to another. It plays a crucial role in the economy of beef-producing countries.
Productivity gains refer to improvements in the efficiency of production processes, allowing for more output with the same or fewer inputs.
Herd rebuilding is the process of increasing the number of breeding animals in livestock production to enhance future production capacity.
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