Quantitative analysis of the beef cattle industry in the state of Pará, Brazil
DOI:
https://doi.org/10.5433/1679-0359.2018v39n2p747Keywords:
Econometric methods, Demand, Supply, Beef cattle breeding, Amazon.Abstract
The state of Pará has the fifth largest cattle herd in Brazil at 20.3 million heads, and beef cattle breeding accounts for 44.32% of the agricultural production value. Using a recursive econometric model estimated by the generalized method of moments, we evaluated the effects of variables that define the supply and demand of slaughtered beef cattle from 1990 to 2015. The results showed that supply and demand were inelastic to prices. Increases in rural salary and calf prices negatively affected supply, and the response to rural credit applications occurred with a four-year lag due to the biological and technological characteristics of production systems. Deforestation tended to increase the supply of cattle and slaughterhouses appropriated the largest share of the economic surplus generated. There were productivity gains since the early 1990s, with the yield of slaughtered animals was 230.55 kg for cattle and 182.25 kg for cows, while currently, it is 276 and 202.5 kg, respectively. The creation of the Agriculture and Livestock Defense Agency of the State of Pará had a positive effect on the supply of cattle and the expansion of agroindustry structure, contributing to the supply of large markets with higher quality beef.Downloads
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