(NewsNation) — Beef deals in South America exploded last year, helping ease the global supply squeeze of the product and limit the surge in meat prices.
Analysis shows Brazil shipped nearly $17 billion worth of meat, cashing in on high export demand from China and the United States. Both countries had pushed beef prices to record-setting amounts.
Industry experts noted farms in South American countries 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 at the CMA feedlot. “Now it is 36 months and going rapidly to 24.”
The surge has led governments from North America and the European Union to make deals with South American countries in the Mecosur deal. The deal involves the EU exporting more technology to the specific countries in exchange for buying meat.
The Mercosur deal, which the EU and South American nations have negotiated for 26 years, has been supported by Germany and Spain. However, France has long been fiercely opposed to the deal. French President Emmanuel Macron said he would vote against the deal moving forward.
The USDA says U.S. beef production will fall to 11.7 million tons in 2026. They estimate Brazil’s beef output to increase from 450,000 tons to 12.35 million tons.