In
today's society, there has been a tremendous growth in demand for livestock
products all across the world. This demand is not limited to affluent nations,
but even to impoverished ones, owing to a decrease in cost. It is worth noting
that the greatest growth in consumption has occurred in China and Brazil, both
of which are rapidly developing countries. However, it is important to note
that this tendency is becoming increasingly prevalent in low-income nations,
where consumption of cattle products such as beef has increased in recent
years. This study examines the supply chain of beef, with a special emphasis on
Brazilian beef, and how it enters the rest of the world.
Over
the last 50 years, the global beef consumption level has been
increasing. According to the Organization for Economic Cooperation and
Development (OECD), global beef output would increase by 1.28 percent per year
until 2027, reaching 79.3 million tons. Brazil will consolidate its position as
a major beef producer through 2040 (Casagranda et al., 2021). The industry aims to enhance
output by utilizing new technology and reducing the amount of land utilized.
The country distinguishes out in its efforts to increase quality production,
which are primarily backed by genetics, hygiene, and governance. Brazil is
known for its robust agriculture, which makes it one of the world's top food
producers. Notwithstanding, this country has witnessed structural and
production changes during the last decade (IBGE, 2019). Beef cow farming is
crucial in this process; for example, the clearance of additional grazing lands
has contributed to the expansion in farm numbers since 1950. Because the states
of Rio de Janeiro, So Paulo, and Minas Gerais are known for their old
occupations, the process of establishing grazing spaces proceeded through
regions that were formerly inhabited by crops. However, the places deemed new
agricultural frontiers have had a direct impact on the increase of cattle
activities, particularly the usage of the Cerrado area in the Midwest (Casagranda et al., 2021).
Some
restaurants' specialization in providing beef from certain breeds of cattle,
such as Hereford and Black Angus, has resulted in a rise in demand for Brazilian
imports (Lundström, 2007). This is notably true in several European
eateries, albeit this demand does not represent the entire community. One of
the reasons for the importing of beef from Brazil is its cheaper cost, which
means that rather than considering the quality of the meat, purchasers
frequently focus on the price. Furthermore, there is less worry about quality
since, in certain countries such as Sweden, the long shipping time from Brazil
means that the beef is tenderer, which not only raises the quality but also
assures that buyers' emphasis remains only on the cost. The popularity for
Brazilian beef is mostly due to the fact that it is produced in free-range
systems, which are made possible by the good environment, which enables for
stocking to take place all year.
Cattle
farming is practiced in a variety of regions around Brazil. The two most
significant locations, however, are the Southeast as well as the Center-West,
which constitute 23% and 35% of the overall herd in the country, respectively. The
South is closely followed by the North and Northeast, which represent 16% and
13% of the overall national herd, respectively (Lundström, 2007). It is necessary to highlight that these beef
producing regions of Brazil are incredibly important since they not only
contribute heavily to the beef export sector, but they are also able to remain
operational throughout the year due to their geographical location. Their
production is influenced by the supply of pasture, which guarantees that the
beef cattle do not require hay at any time of year. As a result of the cattle
being permitted to free range and consume natural forage, exceptionally high
grade meat is produced. As a result of this circumstance, there is a strong
demand for Brazilian beef all over the world, and developed nations prefer it
due to the natural method it is produced.
One
of the most pressing issues in 21st-century cattle markets is traceability.
This is due to the fact that purchasers are constantly curious about where
their meat originates from and how it was processed. As a result, it has become
critical in Brazil to assure the production of high-quality beef (Hajjar et al., 2018). This is a procedure that
entails having complete control over treatment of animals as well as the
capacity to deliver the quality that the consumer demands. In this situation,
the buyer is frequently an importing business that has specified terms that
must be observed. Among these terms are the beef's quality, the needed cuts,
the size of the packing, and the package's design (Lemos and Zylbersztajn, 2018, Casagranda et al., 2021). All beef exported from Brazil is killed,
sliced, packed, and labeled inside slaughterhouses, and these must fulfill the
importers' criteria. The criteria are frequently changing, and as a
consequence, it is critical for exporters to verify that all requirements are
satisfied in order to preserve their markets.
Brazil
sends beef to a wide range of nations throughout the world. Egypt, Russia, and
Chile are among the major importers of Brazilian beef, with their proportion
steadily growing (Zu Ermgassen et al., 2020). However, the EU is the major
importer of Brazilian beef, and its members have boosted their demand for
Brazilian beef due to its excellent quality and production methods. Brazil's
aim for attracting exports, particularly to the EU, is to advertise its beef as
nutritious and ecologically beneficial. This allows importers to regard the
beef as natural since, instead of being grain-fed, as is the scenario with
most cattle in industrialized nations, it is grass-fed, making it marketable.
Brazilian beef is imported into the EU throughout the year, assuring a consistent
meat supply from this nation due to its climatic benefits over other cattle
exporting countries.
When
Brazilian beef enters the EU, it is purchased by two types of buyers:
supermarket chains and wholesalers. In Sweden, for example, the top of the local
chain of distribution is dominated by two major importers. North Trade and
Flodins are two of them. North Trade sells the majority of its beef to
supermarkets, which account for a sizable portion of its market and serve as
its primary consumers (Lundström, 2007, Cederberg,Meyer and Flysjö, 2009). However, it also performs
deliveries to semi-manufacturing enterprises, a market segment that is
predicted to increase significantly in the future. North Trade also supplies
some of its beef to the market in Finland, however this accounts for a small
portion of its total beef distribution. Flodins, on the other hand, focuses the
bulk of its distribution to stockists and supermarket chains, with wholesalers
obtaining 60% and supermarket chains receiving 40% (Lundström, 2007). However,
despite their apparent similarities, supermarkets and wholesalers operate in
very different markets. While the former focuses on selling beef in retail, the
latter is responsible for distributing beef to smaller retailers, likely to
result in wholesalers prolonged reach than supermarkets because there are
several more phases of distribution before they reach their ultimate customers.
Beef
production is the single largest source of greenhouse gas emissions in Brazil
(GHGs). Because of its influence on deforestation, it was directly responsible
for 17% of Brazilian greenhouse gas emissions in 2014 and indirectly
responsible for another 24% (Lerner et al., 2013, Brazil – Resource Efficiency Program for
Brazil’s Beef Supply Chain). The beef sector is expected
to increase by 30% by 2023, with correspondingly increasing consequences. This
poses a significant challenge to Brazil's capacity to meet its Nationally
Determined Contribution (NDC), which includes ambitious aims to cut national
emissions by 37% below 2005 levels by 2025 and rehabilitate 15 million hectares
of deteriorated pasturelands by 2030 (Brazil – Resource Efficiency
Program for Brazil’s Beef Supply Chain). Realization of Brazil's NDCs
thus necessitates a significant shift in attitude by the beef sector and its
supply chain. The latter suggestion is one that intends to catalyze that shift
in mindset and assist realize the enormous untapped potential to improve the
efficiency of the beef industry by supporting the deployment of proven
best-practice interventions throughout its supply chain.
To
summarize, the beef supply chain is regulated by a variety of elements,
including the quality of the beef, the location from which it comes, and the
distribution system in place. The increased demand for beef reared in a natural
setting has created a scenario in which it is critical to get the greatest grade,
pasture-fed cattle onto the market. This is a critical element because it
demonstrates how the global supply chain has gotten more complicated in order
to meet the demand for varied products. Furthermore, governmental bodies taking
the lead in the enactment of laws aimed at ecological conservation and resource
sustainability. Businesses are urged to adopt sustainable measures connected to
their operations, such as collaborating with their suppliers throughout the
supply chain. Governments' proactive engagement in ensuring compliance with the
new environmental legislation has become increasingly crucial in ensuring the
development of sustainable practices among enterprises. These have come to
be required to follow safety, health, and environmental requirements.
References
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