Cattle Sector Analyzer
The Cattle Sector Analyzer is an interactive tool designed to project the trajectory of the Brazilian cattle sector and assess the resilience of representative cattle producers amidst climate transitions.
Cattle Sector Analyzer
The Cattle Sector Analyzer is an interactive tool designed to project the trajectory of the Brazilian cattle sector and assess the resilience of representative cattle producers amidst climate transitions.
The future of the Brazilian cattle sector is set to look very different from the past. By 2050, government, consumer and private sector responses to climate change, which we term ‘climate transitions,’ could drive a 25 percent drop in domestic beef production and a significant decline in domestic beef consumption. However, cattle sector companies that invest in new environmental technologies, adopt sustainability-oriented land management practices and diversify their revenue could benefit substantially from climate transitions and capitalize on the higher prices offered by sustainably focused export markets. Cattle producers that transition to more sustainable cattle production, for example, could improve their financial resilience and performance, with a projected 88 percent increase in capital investment and at least an 18 percent increase in yields.
Learn More About the Cattle Tool Components
1. The Climate Transition Scenario Analyzer projects the impacts on the Brazilian cattle sector across four modest and ambitious climate transition scenarios through 2050, in addition to a Business as Usual scenario representing the continuation of the status quo. Users can gain comprehensive insights into the topics discussed in our recent Brazilian cattle reports (https://orbitas.finance/brazil-cattle-report), including:
- Sector-wide insights around market demand, export dynamics, product prices, production trends and yield variations across the Brazilian cattle sector.
- Representative farm performance metrics, detailing projected revenue, costs and profits across various stages of technological innovation and productivity.
- Implications of greenhouse gas emissions and associated pricing dynamics on profitability.
2. The Financial Stress Testing Simulator evaluates the likelihood of financial losses in Brazilian cattle production based on hypothetical stress events that could impact yield, transportation costs and commodity pricing. These stress events are derived from climate transition projections and historical price and cost fluctuations.
3. The Transportation Reference Tool demonstrates the crucial role transportation costs play in shaping profitability across the cattle supply chain.
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