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Less positive prospects for feedlots

High prices for cattle to be fattened have put an end to the hopes for feedlots in Brazil in 2014, says a survey by Assocon, which represents the largest feedlots in the country.
Assocon says 13% more cattle will be finished in feedlots in 2014, compared with about four million head in 2013. This is far less optimistic than the 25% increase forecast in February.
According to the executive manager of Assocon, Bruno Andrade, the change primarily reflects the greater difficulty experienced in acquiring cattle to be fattened. This accounts for over 50% of the production costs for feedlots. In the first quarter, plans were driven by skyrocketing cattle prices, which reached a record level in March due to the drought that hit the Center-South and affected pastures.

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