DECODING BRAZIL’S BEEF INDUSTRY – AN IN-DEPTH MARKET ANALYSIS UNVEILING MARKET DRIVING FORCES AND THE MEAT REVOLUTION

Abstract

This case study provides a comprehensive analysis of Brazil’s beef industry, with a specific focus on the economic drivers of supply and demand. The research explores the intricate relationship between supply and demand and investigates the economic factors that shape the industry’s growth. The study examines how external economic conditions impact the industry and delves into the rise of JBS, the prominent Brazilian conglomerate that has played a significant role in the industry’s global expansion since its establishment by Jose Batista Sobrinho in 1953. Furthermore, the analysis considers the internal and external factors that significantly influence Brazil’s thriving beef industry, particularly the delicate balance between domestic demand and the surplus generated by robust beef exports. The driving forces behind beef production and consumption in Brazil, including high levels of exports to China, inelastic domestic demand rooted in cultural significance, economic conditions affecting consumer preferences, and Brazil’s focus on increasing production capacity and exporting, all contribute to ongoing imbalances in the supply-demand relationship. Understanding these driving forces is crucial for addressing the imbalances in the Brazilian beef industry’s supply-demand dynamics.