Feeding the Export Boom: Technological Change and Land Use in Brazil's Beef Industry
Abstract. Beef is among the most land- and emissions-intensive foods. In Brazil, expanding agricultural production has historically driven deforestation across carbon-rich ecosystems, including the Amazon. Rapid growth in beef exports raises concerns about further land conversion, yet access to foreign markets may also encourage agricultural intensification, or the adoption of technologies that reduce land requirements per unit of output. Because this intensification is difficult to observe, I use satellite imagery and deep learning to build a novel panel of Brazilian feedlots, facilities where cattle are produced in confinement rather than grazing on pasture. I combine this panel with records of processing-plant authorizations to study the effects of Brazil's beef export boom to China. I exploit variation in the timing of plant authorizations and regions' exposure to newly authorized plants and find that greater export exposure substantially increased feedlot entry and total capacity. Holding current beef production fixed, replacing this China-induced intensive production with traditional, grazing-based systems would require approximately 1.29 million additional hectares of pasture. This would put 169 MtCO2 of carbon stocks at risk, an amount greater than one-third of Brazil's annual emissions, underscoring how trade-induced technological change can shape the environmental consequences of agricultural production.