Brazil’s Path to Sustainable Cattle Farming

Among the key findings of this study is that higher risk premiums from deforestation and conversion could reduce Brazilian slaughterhouses’ equity valuations by up to 30%, demonstrating that a DCF production model is not only technically feasible—as a result of recent advances in monitoring technology—but will also create greater value for the cattle sector compared with the approach of forest clearing and its associated risks.

The main candidates to lead this effort are Brazil’s three largest meat-packers, which together account for around 35% of the country’s beef production and about 85% of beef exports. Of course, this enormous effort must have the committed support of other stakeholders, including government, retailers, restaurants, investors, lenders, the leather industry and consumers. Only through a coordinated effort of the key players in the value chain can Brazil’s meat industry ensure deforestation-free production and continue to grow as a global leader in beef exports.