Beef: Extraction
Why a feedlot steer eats so much grain
What this tab covers How it is mined, drilled or grown, and processed into a tradeable form: the main methods compared, their unit economics, by-products, and the companies that do this work globally and in India.Beef starts with breeding herds on grassland, from US ranges to Brazil's cerrado and the Argentine Pampas. Calves are weaned, grazed, then often finished in feedlots where grain speeds weight gain. Morgan puts the cost at about seven pounds of grain per pound of beef gain, against two to three for chickens and hogs (pdf p. 148). Packers slaughter the animals and ship chilled cuts in boxes (pdf p. 247). Hides, tallow and offal are valuable by-products. Grass-fed systems use more land but less grain.
Beef comes from three broad systems. Grain-finished feedlot systems, mainly in the US, fatten cattle quickly to heavy, marbled carcasses. Pasture-based systems in Brazil, Argentina, Australia and Uruguay raise cattle on grass, often with lighter carcasses and lower feed costs. Mixed smallholder systems across Asia and Africa keep cattle and buffalo mainly for milk and draught, and slaughter them at the end of working life; India's buffalo meat comes from this route. Packing plants then turn animals into boxed cuts and co-products. Beef is the slowest meat to expand, because a cow produces one calf a year and that calf takes about two years to reach slaughter.
Methods compared
| Method | Share of supply | Typical scale | Recovery / efficiency | By-products | Unit cost |
|---|---|---|---|---|---|
| Grain-finished feedlot system (US, part of Australia and Canada) | US 17.6% of world cattle meat output in 2024 (FAOSTAT) | US slaughter 32.2 million head in 2024; US beef output 26.07 bn lb in 2025 (FAOSTAT; WASDE) | US average carcass 382 kg (FAOSTAT 2024); about 7 lb of grain per lb of gain (Morgan) | hides (about 35 kg per head in the US), tallow, offal | no production cost found; price reference only: fed steer price $237.56 per cwt live weight projected for 2026 (WASDE, Oct 2026) |
| Pasture-based system (Brazil, Argentina, Australia, Uruguay) | Brazil 14.7%, Argentina 4.6% and Australia 3.7% of world cattle meat output in 2024 (FAOSTAT) | Brazil herd 238 million head and slaughter 39.7 million in 2024 (FAOSTAT) | average carcass 258 kg in Brazil, 228 kg in Argentina, 298 kg in Australia (FAOSTAT 2024) | hides, tallow, offal | n/a |
| Mixed smallholder dairy-draught system, including buffalo (India, Pakistan, China) | India 4.57 Mt of buffalo meat in 2024, about 63% of world buffalo meat (FAOSTAT) | India 11.95 million buffalo slaughtered in 2024 (FAOSTAT) | not reliable: FAOSTAT 2024 figures (4.57 Mt from 11.95 million head) imply 382 kg per buffalo carcass, out of line with Pakistan's 143 kg, so the Indian head count looks inconsistent | hides for India's leather industry, bones, tallow | n/a |
| Packing and processing | all commercial beef | world slaughter about 305 million cattle and 29 million buffalo in 2024 (FAOSTAT) | world average cattle carcass 229 kg and hide 29 kg per animal (FAOSTAT 2024) | hides, tallow, offal, blood meal, bone meal | n/a |
How each method works
Grain-finished feedlot system (US, part of Australia and Canada)Calves graze on ranches, then spend several months in feedlots on maize-based rations before slaughter. Feedlots buy feeder cattle and sell fed cattle to packers, hedging on CME futures.
Fast, uniform, high-quality beef, but heavy grain and water use and exposure to maize prices.
FAOSTAT 2024; USDA WASDE, 10 Oct 2026; Morgan (1979) Pasture-based system (Brazil, Argentina, Australia, Uruguay)Cattle graze year-round on tropical or temperate pasture, sometimes with a short grain-finishing period. Zebu breeds dominate in Brazil. Low feed costs make these countries the main exporters.
Low cost and large export surpluses, but more land per kilo, deforestation scrutiny (EU rules from 30 December 2026) and drought risk.
FAOSTAT 2024 Mixed smallholder dairy-draught system, including buffalo (India, Pakistan, China)Farmers keep buffalo and cattle mainly for milk. Unproductive male and spent buffalo are sold to licensed abattoirs, which produce deboned frozen buffalo meat (carabeef) for export. Cow slaughter is banned in most Indian states, so India's bovine meat is buffalo.
Very low-cost meat because animals are a by-product of dairying, but export access depends on disease status (foot-and-mouth) and halal and sanitary approvals.
FAOSTAT 2024 Packing and processingPlants stun, slaughter and dress animals, chill carcasses and break them into boxed cuts and trim. Large exporters run integrated plants with rendering and hide processing on site.
Economies of scale have concentrated packing in a few firms in each exporting country.
FAOSTAT 2024 Unit economics are indicative ranges from the sources named; costs vary widely by deposit, region and year.Who does it: global
| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| JBS | Brazil | beef, pork and poultry packer (US, Brazil, Australia) | 28.13 US$ billion net sales, JBS Beef North America (group net revenue US$86.2 billion; JBS Australia US$8.08 billion) | 2025 | Beef Central, 27 Mar 2026 (JBS 2025 results) |
| Tyson Foods | US | beef packer | 21.62 US$ billion beef segment sales (adjusted operating loss $426 million) | FY2025 | Talk Business & Politics, Nov 2025 (Tyson FY2025 results) |
| Cargill Meat Solutions | US | beef packer | not published | n/a | |
| Minerva Foods | Brazil | beef packer and exporter (Brazil, Argentina, Uruguay, Australia) | 54.8 R$ billion net revenue (record), about 60% from exports | 2025 | Foodmarket, Minerva 2025 results |
| Marfrig | Brazil | beef packer (Brazil, South America, US) | not published | n/a |
Who does it: India
| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| APEDA | India | export promotion agency that registers export abattoirs and publishes buffalo meat export data | 5.1 US$ billion buffalo meat exports (up 25.6%; about $4.1 billion implied for FY2025) | FY2026 | Dairy News Today (Ministry of Commerce / APEDA data) |
| Allanasons (Allana Group) | India | buffalo meat processor and exporter | not published | n/a | Dairy News Today, FY2026 (named among leading exporters) |
| HMA Agro Industries | India | listed buffalo meat exporter | not published | n/a | Dairy News Today, FY2026 (named among leading exporters) |
| Fair Exports India | India | buffalo meat exporter | not published | n/a | Dairy News Today, FY2026 (named among leading exporters) |
India produced 4.57 Mt of buffalo meat in 2024 (FAOSTAT). Buffalo meat exports reached $5.1 billion in FY2026, up 25.6%, at an average $3,591/t (roughly 1.4 Mt by calculation); Vietnam, Malaysia, Egypt, Saudi Arabia and the UAE each take over $100 million (Ministry of Commerce/APEDA via Dairy News Today). On Comtrade's frozen bovine meat code India ranked fourth by value in 2024 (9.7%, about $3.5 billion). Exports are buffalo meat, since cow slaughter is banned in most states.