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Climate change and beef supply chain in Southern Brazil

Published online by Cambridge University Press:  05 September 2018

P. R. R. X. Pereira*
Affiliation:
Center for Studies and Research in Agribusiness, Federal University of Rio Grande do Sul, 91540-000, Porto Alegre, RS, Brazil Campus Professora Cinobelina Elvas, Federal University of Piauí, 64900-000, Bom Jesus, PI, Brazil
H. Hasenack
Affiliation:
Center for Studies and Research in Agribusiness, Federal University of Rio Grande do Sul, 91540-000, Porto Alegre, RS, Brazil
G. R. Pereira
Affiliation:
Center for Studies and Research in Agribusiness, Federal University of Rio Grande do Sul, 91540-000, Porto Alegre, RS, Brazil Deparment of Animal Science, NESPRO, Federal University of Rio Grande do Sul, 91540-000, Porto Alegre, RS, Brazil
H. Dewes
Affiliation:
Center for Studies and Research in Agribusiness, Federal University of Rio Grande do Sul, 91540-000, Porto Alegre, RS, Brazil
L. C. Canellas
Affiliation:
Deparment of Animal Science, NESPRO, Federal University of Rio Grande do Sul, 91540-000, Porto Alegre, RS, Brazil
T. E. Oliveira
Affiliation:
Center for Studies and Research in Agribusiness, Federal University of Rio Grande do Sul, 91540-000, Porto Alegre, RS, Brazil
J. O. J. Barcellos
Affiliation:
Center for Studies and Research in Agribusiness, Federal University of Rio Grande do Sul, 91540-000, Porto Alegre, RS, Brazil Deparment of Animal Science, NESPRO, Federal University of Rio Grande do Sul, 91540-000, Porto Alegre, RS, Brazil
*
Author for correspondence: P. R. R. X. Pereira, E-mail: rodrigopereira@ufpi.edu.br
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Abstract

The current study evaluated the uncertainty of beef cattle supply for slaughter due to the variable climate of Rio Grande do Sul, Brazil. The data included the numbers of cattle slaughtered, local live cattle prices, price and amount of exported beef, and the prices of the Brazilian beef futures market. Data were collected on the beef supply from January 1997 to March 2014. Climate data included El Niño (EN), La Niña (LN), South Atlantic Sub-tropical Dipole (SASD), Negative and Positive Atlantic Dipole (−AD and +AD), Tropical South and North Atlantic indices. Statistical analysis was performed by a multivariate regression of time series. It was observed that EN and SASD climatic variables increased the numbers of beef cattle slaughtered, with a 1 and 4-month lag, respectively. On the other hand, LN and -AD decreased the number of animals slaughtered, with 4 and 0 months’ lag, respectively, meaning that there was an immediate response to −AD, while there was a 4-month delay for LN. The amount of exported beef and live beef cattle prices were explained by the number of animals slaughtered in the state. Data suggested that the beef cattle market in RS was more strongly influenced by the occurrence of climate phenomena with LN and −AD than by economic variables such as the price paid to the producer for beef and the amount exported. The climate changes evaluated in the current study affect the livestock production system and consequently the beef market industry in Southern Brazil.

Information

Type
Climate Change and Agriculture Research Paper
Copyright
Copyright © Cambridge University Press 2018 
Figure 0

Fig. 1. Geographical limits of the Pampa Biome in the State of Rio Grande do Sul, Southern Brazil.

Figure 1

Table 1. Occurrence of climate anomalies during spring and summer seasons from 1997 to 2014 in the State of Rio Grande do Sul

Figure 2

Table 2. Effective supplies of cattle for slaughter in southern Brazil, from September to April of the years 1997–2014

Figure 3

Table 3. Climate anomalies and their degree of lags in relation to the supply of cattle for slaughter in the Rio Grande do Sul

Figure 4

Table 4. Significance of beef cattle prices paid to producers, exported beef prices and The Brazilian Mercantile and Futures Exchange on the supply of cattle for slaughter in the Rio Grande do Sul

Figure 5

Table 5. Significance of beef cattle supply variables for slaughter, exported beef prices and The Brazilian Mercantile and Futures Exchange on the supply of cattle for slaughter in the Rio Grande do Sul

Figure 6

Table 6. Beef cattle supply (tons) variables for slaughter (SS) and exported beef prices (EBP) regarding beef exports by the Rio Grande do Sul State

Figure 7

Table 7. Mean (μ) price and revenue in the periods of occurrence of weather anomalies

Figure 8

Fig. 2. Price of live cattle paid to farmers in the State of Rio Grande do Sul, Southern Brazil and its relation to climate phenomena.

Figure 9

Fig. 3. Relationship of climate phenomena and supply, price and gross value of cattle production in the Rio Grande do Sul, Southern Brazil.