Brazilian feedlot output is expected to grow by a whopping 15-20pc in 2008, albeit below the average growth of 23pc over the past five years, according to Meat and Livestock Australia.
MLA says the slowdown in rapid growth comes as a result of the increased feeder and feed costs.
It says the cost of feeder animals, which represent around 60pc of total lot feeder's costs, increased 47pc during the first half of 2008 in Mato Grosso do Sul, the reference state for feedlots in Brazil.
The dearer costs have mostly harmed small feedlots, which have increasingly been taken over by slaughterhouses and larger feedlots, consolidating the industry.
Some feedlot companies have reached capacities of around 100,000 head (AgraFNP).
MLA says the feedlot sector in Brazil has grown in recent years, as a way of taking advantage of high prices late in the off season when pastures quality and quantity diminishes, reducing cattle output.
The off season occurs between the winter period from June to September and prices peak during September and October.
Main feed used in the industry are corn silage, sugarcane silage and sorghum silage among others, as their availability has increased in recent years.
Currently, around 10pc of the 40 million cattle slaughtered in Brazil are finished in feedlots (Brazilian Meat Monitor), spending, on average, between 65 to 100 days on feed.
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