JBS said it is prepared for a likely shift in Brazil’s cattle cycle. Eduardo Pedroso, executive director of Cattle Procurement at Friboi, noted that after two years of a strong increase in the extraction rate of the Brazilian herd, the country may face lower availability of animals for slaughter in 2026.
“We are entering a period of probable female retention. We are preparing through partnerships, contracts, and very close relationships with producers to preserve our volume,” Pedroso explained at an event in São Paulo. He recalled that the company increasingly operates with forward contracts, even buying cattle “still in the cow’s womb, months or years in advance.”
According to Datagro estimates, after a 3% increase in 2025, cattle slaughter in Brazil would fall by more than 9% in 2026, to 37.1 million head. The movement responds to a natural cycle after the heavy culling of cows and the subsequent retention of breeding females. The finished male market remains balanced, with prices between R$/@ 290 and 330, according to the consultancy.
Pedroso highlighted that crop-livestock integration, the incorporation of technology, reduced slaughter age, and improved productivity help to mitigate the impacts of the cycle.
Meanwhile, Roberto Perosa, president of Abiec, downplayed Datagro’s projections and said he does not believe in such a sharp drop in slaughter, trusting in factors such as genetic improvement of the herd and a possible stimulus to domestic consumption in 2026, an election year. Source: Reuters/Datagro
