Trade Hub

The Trade, Development, and Environment Hub (Trade Hub) project in collaboration with the Public Policy Group of ESALQ/USP in Brazil, has released a policy brief addressing the perspectives for a more sustainable cattle ranching sector in Brazil. This study is the result of extensive research and analysis conducted throughout 2022, aiming to understand the economic, environmental, and social dimensions of cattle farming in the country and its implications for adoption of technology, sustainable and inclusive rural development.

According to the study, Brazilian cattle farming holds a central position on both national and global economic and environmental agendas. The growing demand in the international market, especially from Asia, has presented challenges and opportunities for various types of producers and links in the beef production chain. The issues explored by the study include the current and projected changes in the livestock supply-chain, the environmental impacts of greenhouse gas emissions, and the social challenges faced by small and medium-sized producers who depend on livestock farming.

According to Matheus Couto, Trade Hub coordinator in Brazil, the study revealed that cattle farming has undoubtedly undergone intensification in recent years, with a significant increase in the national cattle herd, making Brazil the world's second-largest beef producer. However, low carbon agricultural technologies and good agricultural practices are not widely adopted by the productive sector, and policies to be successful need to also include the context of small-scale farmers.

However, the environmental dimension of livestock farming is a critical aspect, as the activity is responsible for a substantial portion of greenhouse gas emissions in Brazil. Productive intensification is suggested as a possible solution, but there are concerns that it may lead to deforestation and increased emissions, by increasing opportunity incentives for intensified expansion.

The social dimension of cattle ranching was also highlighted in the study. According to researcher Alberto Barretto, "Many small and medium-sized rural producers depend on this activity, which is not always intensive. These producers will face greater pressure due to the trend of intensification, specialization, and production concentration resulting from the increased integration of Brazilian cattle ranching into the international market."

The document provides valuable insights into the future of livestock farming in Brazil and emphasizes the need for strategic public policies, especially geared toward small and medium-sized producers. It also underscores the importance of sustainable approaches to address environmental challenges.

View the summary in Portuguese here.

View the summary in English here and the extended version here.