Brazilian Cattlemen Touring
Panhandle Feedlots, Markets

By David Bowser

AMARILLO — The Texas Panhandle was turned into a classroom last week as a group of "foreign exchange" students were exposed to the practical world of cattle feeding.

Sixteen Brazilian cattlemen, led by a private educational project, toured feedyards in Hereford, visited the Amarillo Livestock Auction, went to Hale's Angus Farm in Canyon, and spent an evening with Panhandle native Tom Christian at his Figure Three Ranch on the rim of Palo Duro Canyon eating steaks and peach cobbler.

An interpreter traveling with them likened the chant of the auctioneer at Amarillo Livestock Auction to native folk music in northeastern Brazil.

"They make up the lyrics as they go along, and it's very nasal," she says. "It's a lot like that."

But Carlos Eduardo Ribeiro, on the executive board of the Brazilian Cattle Raisers Association, the oldest cattlemen's association in Brazil, says the trip was important and educational, not just entertaining.

Ribeiro's interested in feedyard operations in U.S. He has one ranch about 13 miles out of Sao Paulo and another near Parana. In addition to his cattle, he grows oranges, corn and beans, and has a factory for corn-derived products. Parana is a purebred operation, he says. He also raises potatoes there.

With an 800-head herd of native Brazilian cattle at Sao Paulo and another 800 head herd at Parana, Ribeiro's imported both Simmental and Charolais to cross with his animals. He is trying a feeding operation with 300 head of crossbred cattle, but he plans to enlarge the operation to 1000 head.

There are no large commercial feedlot operations in Brazil, he says, like those in the United States, but his cattlemen's group is interested in developing such an industry.

Ribeiro was particularly interested in the Texas sale barn and feedlots.

"We haven't reached this point yet," he says.

Brazil has the largest cattle herd in the world, Ribeiro explains, but technology has not kept up with herd expansion.

"We are absorbing know-how, means and methods to produce quality beef," he says. "Some things we have seen can't be applied to the Brazilian cattle industry."

Other things can be applied, but it will take time.

In a step toward developing a cattle feeding industry, the commodities board in Brazil recently approved a new system allowing for the purchase of cattle certificates that could return a higher rate of interest to the owner than on other investments. Ribeiro thinks this futures-like contract should be popular with investors.

However, he concedes realistically, "We don't know if it will work."

The program involves 2000 people selling title to 140,000 steers, and Ribeiro predicts that investors should be able to redeem their certificates with an interest of about 3.72 percent per month. The return on normal investments in Brazil, he says, is about 1.5 percent per month.

Ribeiro is also involved in Brazilian politics. He served as mayor of a rural town of 2000 and is running for the national congress. Most of his constituents are rural producers.

The Brazilian rancher-politician says that in the past the outlook in Brazil has been parochial, but that is broadening with an eye toward a world view.

"I've seen a very interesting story of the future here," he adds.

He made the trip to learn how steers are marketed, how breeding programs are developed, and how the beef industry in Brazil could develop in the future.

For years, Brazil did not export any beef because of hoof and mouth disease, but that the disease is expected to be eradicated soon, the country is looking at niches in the export market. Some states, he says, have not had a case of hoof and mouth disease in more than three years.

"It's practically eradicated," he says.

And new legislation allows for traceability of cattle. It lays down a meat plan that can trace the origin of the animal and what it was fed.

"It is the precursor," Ribeiro says, "of a quality program for export."

He adds that he hopes the country soon will have a carcass classification program.

The bos indicus cattle found in Brazil are adapted to the country's climate. Now those cattle are being crossed with English and Continental breeds.

Most of the cattle graze on fast-growing Braquaria, an African grass found throughout Brazil. It can grow several centimeters a day, Ribeiro says.

"It's easy to raise cattle on Braquaria."

There are some alfalfa pastures, he says, but the grass-fed cattle take four to five years to reach slaughter age.

New frontiers are opening up in Brazil, Ribeiro says. For that reason, the Brazilians are striving to produce 1100 pound steers in 13 months or less. They are trying what they call Super Fast gain, taking a steer to 1100 pounds in less than a year. They hope to develop a niche market in Europe, selling that meaty in competition with veal.

Brazil also belongs to a market alliance with Argentina, Chile, Uruguay and Paraguay. If Chile or Argentina joins Mexico, Canada and the U.S. in the North American Free Trade Agreement as has been proposed, it could quickly open the door to new markets for many of the South American countries.

The Brazilians were in the Panhandle as part of a program first developed at the University of Connecticut 30 years ago under the direction of Vinton Fisher. It went private last year. All the Brazilians on the trip paid for the experience out of their own pockets. It is the first of three trips planned to the Panhandle to study the cattle industry.

"They are here to tour the area and get an overview to try to put the feedyard in context," says director Robert Caldwell.

Caldwell says they want to work with Texas cattlemen and feeders to develop a feeding industry in Brazil.

"That's what this trip is all about," he says.

If nothing develops, they will go on to Nebraska. The governor of Nebraska and a trade delegation have already gone to Brazil to make contacts in the cattle industry.

"This is a series of classes or trips," Caldwell says.