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W8: Weekly Beef Update

Carne de vacuno deshuesada congelada
Australia
Ucrania
Publicado 2 de mar. de 2023
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Tridge's global market analysts and country representatives take a deep dive into what happened during W8 in the global beef landscape. In summary, the global beef market is expected to reach USD 421.6B in 2028 due to the rising global population which is expected to increase the demand. The USDA indicates that the US biannual cattle number was 89.3M head as of Jan 1, down 3% compared to a year ago and the lowest since 2015. The number of Australian cattle slaughtered in W8 reached 108.84K, a 120 head increase from the 108.72K head in W7. The Zimbabwean government seeks to grow the national herd by launching measures against tick-borne diseases and using artificial insemination. Embrapa predicts that Brazilian beef exports will reach 3M MT by 2030. Lastly, beef exports to China in January totaled 185K MT, which is the lowest monthly volume since January 2022.

Live Beef

US: Midday Livestock Markets (Feb 20)

Direct cash cattle trade is off to its typically quiet start. Buyers and sellers are busy taking inventory. If business in W8 follows the recent trend, significant trade volume will hold out until sometime on Feb 24. There was a light to moderate trade that took place late in W7. Southern live deals were reported at mostly USD 161 to USD 162, USD 1 to USD 2 above the prior week’s weighted averages. Dressed deals in the North were at mostly USD 257, USD 3 above the previous week’s weighted average basis in Nebraska.

US: Cattle Futures Find Support Heading Into Midweek (Feb 21)

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, supported by the recent strength in boxed beef prices, getting ready for the week’s direct business, and Feb 24, on Feed numbers from the USDA. April live cattle closed USD 0.45 higher at USD 165.10 and June live cattle closed USD 0.75 higher at USD 160.87. March feeder cattle closed USD 0.35 higher at USD 186.87 and April feeder cattle closed USD 0.35 higher at USD 190.80.

US: Beef Cattle Inventories Drop to Lowest Levels in More Than Half-Century (Feb 23)

Beef cattle inventories across the United States are at their lowest level in more than six decades, according to the US Department of Agriculture (USDA). Rising demand will mean long-term price hikes for consumers. In its biannual cattle report, USDA reported a total of 89.3M head as of Jan 1, about 3% lower than the total reported a year ago, and the lowest since 2015. Beef cattle, bred specifically for slaughter and meat sales, declined 3.6%, to 28.9M head, the lowest total recorded by the agency since 1962.

US: Feral Cattle Roam New Mexico’s Wilderness, Federal Agents Plan to Hunt Them From the Sky (Feb 23)

In the skies above the New Mexico wilderness, federal agents in helicopters in W8 plan to shoot and kill dozens of feral cattle, which officials say threaten protected lands and the public's safety. For the second year in a row, a last-ditch lawsuit by ranchers aims to halt the aerial extermination effort. The New Mexico Cattle Growers' Association and the Humane Farming Association are seeking a preliminary injunction against the federal government to stop the shootings, saying the practice is "cruel and inhumane" and runs afoul of state and federal laws.

US: Beef Prices Rising as Slaughter Remains at Record Highs (Feb 23)

Expected declines in American beef production are pushing prices up, while slaughter rates remain at historically high levels. American production, as discussed in the recent Meat & Livestock Australia (MLA) January Cattle Projections, dynamics in the US cattle herd are an important driver of cattle prices in Australian sale yards. As a competitor of Australian beef, the US market subsequently affects the Australian market. For the past several years, the US has been in a technical destock. In January, the United States Department of Agriculture (USDA) released data estimating that the herd had shrunk by 3% to 89.3M head.

US: US Cattle Set Contract High Following Brazil Stops Exports to China (Feb 24)

Chicago Mercantile Exchange (CME) live cattle futures reached a contract high on Feb 23 amid hopes that Chinese importers will buy more US beef after rival supplier Brazil suspended shipments to China. Brazil said it would halt beef exports to China, the main destination for its overseas shipments, after confirming a case of mad cow disease. Brazilian Agriculture Minister Carlos Favaro vowed to treat the case with the utmost transparency, adding he hopes the suspension can be lifted next month. In 2021, Brazil suspended exports to China for more than three months after finding two cases of the disease. 

Australia: Return to Beef Production (Feb 20)

Industry organization Meat and Livestock Australia (MLA) predicts that rebuilding herds will lead to increased production and more exports. Australian experts assume that the cattle population in June 2023 will amount to 28.82M heads. This would not only be 1.23M more than the previous year, but also more than at any time since 2014. Further increases are expected in the coming years, but it also depends on weather conditions. Sufficient rainfall in Australia has recently provided a good basis for feed production, which, together with high producer prices, has accelerated herd building. The revival of production was already felt last year. In total, 6.48M cattle were slaughtered, an increase of 2.7% compared to 2021. In the case of slaughter cattle, an increase of 8.3% is expected in 2023 to 7.02M units, and in 2024 by 8.4% up to 7.60M units.

Australia: Young Bullocks Dominate Yarding at Warwick Cattle Sale (Feb 21)

Numbers rose at the W8 Warwick cattle sale as local agents entered 1,248 cattle, which was up by 256 from W7. The yarding was dominated by well-finished young bullocks, cows and heavy feeder yearling steers and heifers. The light weight yearling cattle was mixed in type with prices reflecting the quality on offer. With the absence of two major processors, heavy bulls and cows eased in price by 11 cents a kilogram to 14c/kg, however young bullocks remained firm on last week. Yearling steers and heifers mainly sold to improved prices depending on type and quality. Light weight yearling steers to re-stockers sold to 598c/kg and averaged 540c/kg with those weighing in the 200 kilogram to 280kg range averaging 457c/kg and selling to 510c/kg. Yearling steers weighing over 280kg selling to backgrounders made 456c/kg to average 414c/kg. 

Australia: Differing Season Shows as Northern Producers Hold Onto Cattle, While Maranoa and Downs Call for Rain (Feb 22)

Agents across the state unpacked the impact of mixed season on cattle markets. While those in the north have received significant grass-growing summer rainfall, prompting them to hold onto their cattle and make the most of the good season, graziers in the southern half of the state appear to have missed out. Queensland Country Life spoke to a number of livestock agents around the state to get a gauge on what the season currently looked like in their patch, and how it could impact the cattle market in the coming weeks and months. Ray White Blackall agent Andrew Turner said many producers in his area were experiencing one of their best seasons in many years. 

Australia: Grainfed Cattle Account For Almost Half of Australia’s Cattle Slaughter (Feb 23)

In 2022, the lot feeding sector solidified itself as a major component of the Australian beef supply chain, accounting for a record 47% of total cattle slaughter. With the release of the December 2022 quarter lot feeding brief, a year-in-review analysis has been conducted by MLA’s Market Information team to gain insights into how the sector performed. National capacity for cattle on feed in 2022 continued its natural upwards trajectory, with the industry expecting to have space available for 1.532M head (assuming 100% utilization) in Q4 2022. Compared to Q4 2021, a further 5.5%, 79K head of pen space was delivered in 12 months. National capacity for Q4 2022 is 225K head higher than Q4 2018, an increase of 17.2%. 

Australia: Preventing Costly Cattle Disease to Boost Fertility Rates (Feb 23)

The impacts of a venereal disease that causes cattle infertility and costs the industry hundreds of millions of dollars could be mitigated by an experimental vaccine created at the University of Queensland. Professor Ala Tabor from the Queensland Alliance for Agriculture and Food Innovation said vaccines for the bovine trichomoniasis protozoa are available overseas, but not in Australia. The work was prompted by the results from a survey for the disease led by Professor Michael McGowan from UQ's School of Veterinary Science, revealing that bulls at abattoirs from all of Australia's major beef breeding regions, and more than one in 10 bulls in northern regions, were infected.

Australia: Slaughter of Australian Beef Cattle in W8 Increased by 120 Heads WoW (Feb 23)

The number of Australian cattle slaughtered in W8 reached 108.84K, a 120 head increase from the 108.72K head in W7. This slight increase in numbers was formulated by a decrease in Queensland slaughter numbers and a 1% increase in NSW.

Australia: The Eastern Young Cattle Indicator for Cattle Market Softened by USD 0.18 WoW in W8 (Feb 23)

The Eastern Young Cattle Indicator (EYCI) softened by USD 0.18 WoW, with an increased sales throughput of 5k head.

  • EYCI 15 Feb: USD 5.12/kg cwt
  • EYCI 22 Feb: USD 4.94/kg cwt

WoW change is USD 0.18/kg cwt

Australia: Cattle Carcass Weights on the Rise (Feb 24)

Carcass weights for beef cattle and goats are on an upwards trajectory, according to the latest data released by the Australian Bureau of Statistics (ABS). MLA’s Market Information team takes a deep dive into the driving factors. Adult cattle carcass weights average cattle carcass weights have been increasing in recent years due to improvements in genetics and management systems across Australia. According to the ABS, average carcass weights have risen by 30% since June 2003, when the average carcass weight was 245.86kg/head, to sit at 320.16kg/head nationally in Q4 2022. Attributed in part to the higher numbers on feed, Queensland cattle were, on average, the heaviest cattle with weights 5% higher than the national average in Q4.

Australia: Weekly Cattle Market Wrap (Feb 24)

Across most cattle indicators, prices continued to operate with more stability, with minimal changes across most categories. High supply of processor cows in the sale yards did not overly affect prices, with the improved processor cow price falling 2.5¢ WoW to finish at 281¢/kg live weight (lwt). Since late January, the indicator has operated within a tight band of 280–284¢/kg lwt, signaling the market is now operating in a new state of equilibrium. This is despite higher supplies of slaughter weight cows in the system. For the restocker yearling heifer indicator, prices fell 16¢ WoW to finish at 353¢/kg lwt. Analysis of weight data suggests that heavier heifers close to joining weights have been less affected in price terms than the 200–280kg heifers, which require growing out prior to joining. The 330–400kg weight range lost 10¢ this week, although it’s currently operating at a premium to both the 280–330kg and 200–280kg weight ranges. This indicates there is a producer demand for ready-to-join or close-to-joining weight heifers, and producers are opting to manage their land and grass availability as autumn/winter and the dry season approaches.

Netherlands: Dutch Exports of Heifers Fell Sharply in 2022 (Feb 21)

In the 2021/22 financial year, the number of export certificates issued by Coöperatie CRV decreased by 30%. This is evident from the cooperative's annual statistics. CRV issued a total of 11.93K export certificates, more than 5K less than in the 2020/21 financial year. The certificates are mainly issued for the export of pregnant heifers. Due to the Russian invasion of Ukraine, the export of Dutch heifers to Russia has fallen sharply. In the 2020/21 financial year, more than 9K heifers went to Russia and in the 2021/22 financial year there were more than 4.8K. This makes the country still the most important destination for the export of breeding stock. After Russia, Dutch heifers mainly went to Latvia, Kuwait and Pakistan. The Dutch dairy sector has become significantly less active in the export of cattle compared to about 5 years ago. 

Ireland: 416.5K Factory Cattle Came From Feedlots in 2022 (Feb 23)

New figures on the composition of the 2022 factory beef kill show that 416.5K cattle that were processed at EU-approved slaughter plants in 2022, came from Controlled Finishing Units (CFUs), feedlots. The number of cattle coming from CFUs has been growing YoY and has increased by 153.5K cattle in the past five years. According to figures from the Department of Agriculture, Food and the Marine (DAFM), a total of 1.79M cattle (excluding veal) were slaughtered at DAFM-approved factories in 2022. The news comes as the DAFM has recently published the final figures on the number of cattle slaughtered from CFUs in 2022.

Ireland: Exceptional Start to Spring-Grazing Season for Most in Ireland (Feb 24)

The 2023 spring-grazing season has gotten off to an expectational start, with the majority of dairy farms able to get cows out for a number of hours/day. Farms that would be considered to be on heavy land have been able to get cows out on a more consistent basis compared to other years. But it is important to continue to mind land and avoid causing any damage that may have a detrimental effect going forward. As the calving season progresses the number of cows going to grass should increase, placing more pressure on land and increasing the potential risk of damage being caused.

Ireland: Brazil BSE Case Could Spell Disaster, Not Success for Irish Farmers (Feb 24)

The former president of the Irish Farmers’ Association (IFA), Eddie Downey has warned farmers to be apprehensive about the confirmed case of bovine spongiform encephalopathy (BSE) in Brazil. Authorities in Brazil confirmed a case of BSE, mad cow disease, and have suspended beef exports to China. The World Organization for Animal Health (OIE) has also been alerted.

Ireland: This Year’s Calf Registrations Heading Towards 700K (Feb 25)

Total calf registrations have reached 680.90K head for the YTD, based on the latest data from the Irish Cattle Breeding Federation (ICBF). A total of 175.60K calves were registered in W7, which is 171 head more than the same period in 2022 when 175.43K calves were registered. 2023 total registrations remained behind 2022, with 14.98K fewer calves having been born in 2023 thus far. However, the year is catching up, as the total decline in calf registrations, which stood at 26.40K in W7, has dropped by 11.42K. A total of 157.39 calves were registered to dairy dams in the week ending February 24, which is 2.03K more than the same period in 2022 when some 155.36K calves were registered to dairy dams. So far this year, the total number of calves registered to dairy dams stands at 593.24K, which is 9.00K fewer than in 2022 when the figure stood at 602.24K head. The number of calves registered to beef dams also remained behind 2022, with 5.98k fewer calves having been registered so far this year.

Poland: Meat Market (Feb 22)

On January 30 - February 5, 2023, domestic suppliers for slaughter cattle received USD 2.42/kg (PLN 10.67) compared to USD 2.42/kg (PLN 10.66) a week earlier. The price of this livestock was 2% lower than at the beginning of January this year, but 12% higher than a year ago. In the EU, the purchase price of R3 cattle for slaughter remained at the previous week's level and averaged USD 540.79/100kg (EUR 508.73) of chilled slaughter weight. It was a price level lower by 1% than a month ago, but higher by 14% than a year ago. The price of live cattle of this class in Poland amounted to USD 512.49/110kg (EUR 482.11), which is 5% less than the EU average. Plants were selling compensated beef quarters from bulls up to 2 years old at USD 4.79/kg (PLN 21.10), USD 0.014/kg (PLN 0.06) more expensive than in the previous week, but 3% cheaper than a month ago. The price of this assortment was higher by 10% than in the comparable week of 2022.

Brazil: Warning That It Is Investigating a Possible Case of Mad Cow (Feb 20)

The Brazilian Ministry of Agriculture and Livestock reported on Feb 20 that it is analyzing a suspected case of Bovine Spongiform Encephalopathy (“mad cow disease”), something that, if confirmed, will force the suspension of beef exports to China. "The suspicion has already been submitted to laboratory analysis for confirmation or not and, depending on the result, the corresponding actions will be applied immediately," it was officially reported. The last time Brazil detected a case of atypical "local cow disease", which is generated by an individual mutation, was in September 2021, which led to the suspension of meat shipments to China for several months. If the case is confirmed, Brazil must officially report it to the World Organization for Animal Health (OIE) and, in accordance with the provisions of the sanitary protocol signed with China, suspend shipments until the authorities of the Asian nation decide otherwise.

Brazil: Confirms Case of “Mad Cow” and Suspends Meat Exports (Feb 22)

Finally, as Bichos de Campo had anticipated, the Brazilian Ministry of Agriculture and Livestock confirmed the presence of a sporadic case of Bovine Spongiform Encephalopathy (“mad cow disease”) and as of this Feb 23 will suspend exports of bovine meat products to China. The case, present in a nine-year-old male located on a small property in the municipality of Marabá (state of Pará), was notified to the World Organization for Animal Health and the samples were sent to the reference laboratory of the institution in Alberta, Canada, where it can be confirmed if the case is atypical (sporadic and caused by a genetic disorder). The animal was euthanized and its corpse cremated on the spot. 

Brazil: Mad Cow Fears Could Reopen China to Australian Beef Exporters (Feb 22)

China may be forced to act quickly to overturn bans on Australian beef exporters as the specter of mad cow disease hangs over its major supplier Brazil. Brazil, the world’s biggest beef exporter, is investigating at least one suspected case of mad cow disease with test results expected later in W8. The last time Brazil had confirmed atypical cases of bovine spongiform encephalopathy (BSE) in 2021 it voluntarily suspended exports to China and other countries. 

Brazil: Minister Fávaro Receives Chinese Ambassador to Address the Case of BSE (Feb 23)

The Minister of Agriculture and Livestock, Carlos Fávaro, received the Chinese ambassador to Brazil, Zhu Qingqiao, in a meeting held on Feb 23 to provide all clarifications on the work being carried out by the Brazilian government for monitoring of the case of Bovine Spongiform Encephalopathy (BSE) confirmed in an animal in the municipality of Marabá (PA). According to the health protocol established between the countries, which have the greatest commercial relationship between them for Brazilian beef, exports to China are temporarily suspended as of Feb 23 and, given the importance of the Asian market, information about the investigation of the case are being monitored by the countries for a more agile adoption of the necessary measures by the governments. 

Brazil: Minerva Will Serve China With Units Abroad After Case of “Mad Cow” (Feb 23)

Minerva said on Feb 23 that it will continue to meet Chinese demand for beef through four slaughter units, three in Uruguay and one in Argentina, after a "self-embargo" by Brazil due to a case of “mad cow disease” in Pará. According to Minerva, this strategy will prevent its market share from being affected, since the Brazilian units that previously shipped meat to the Chinese are now suspended. The slaughterhouse, leader in South America in the export of beef, commented that the suspension was due to the confirmation of a case of Bovine Spongiform.

Brazil: Market and Government Hope for Shorter China Embargo on Beef From Brazil (Feb 23)

The suspension of beef exports from Brazil to China, due to a case of "mad cow disease" in Pará, may last less time than that which occurred in 2021, last time that atypical cases of the disease were registered in the country, according to market participants heard on Feb 23. The embargo, which is part of a health protocol between the two countries when the disease Bovine Spongiform Encephalopathy (BSE) is confirmed in Brazil, remained for almost 100 days in 2021. In 2019, another atypical case was also confirmed, but the suspension of exports lasted only 13 days.

Brazil: Brazilian Beef Lands in Dubai and the Abiec and Apexbrasil Partnership Intends to Demonstrate the Quality of Brazilian Beef in the Arab Market (Feb 23)

One of the most strategic markets for Brazilian beef, the United Arab Emirates will be the focus of a promotional action developed by the Brazilian Association of Meat Exporters (ABIEC), which once again takes the Brazilian Beef project to Gulfood, one of the main food fairs in the world. The event takes place in Dubai, at the modern convention and meeting center of the Dubai World Center, between the 20th and 24th of February.

Brazil: Meatpackers Turn To Neighbor Countries to Serve China (Feb 24)

Two of the three meat packers listed on B3 announced on Feb 23 that they are redirecting Chinese beef orders to their plants in Argentina and Uruguay. The effort is to mitigate the damage caused by the self-suspension of Brazilian exports in the sales of these companies and throughout the chain. Due to the possible atypical case of “mad cow”, the Ministry of Agriculture voluntarily suspended protein shipments on Feb 24, as provided for in the agreement with China. Now it's up to Beijing to give the green light for the resumption of business and there is no deadline for that. In 2019, there were 13 days of waiting. In 2021, more than 100 days. Largest exporter of beef in South America, Minerva informed that it will meet demand from China from its three plants in Uruguay and its unit in Argentina. 

Brazil: During W8 a Case of the Mad Cow Disease Was Confirmed in Brazil (Feb 24)

In W8, after the first announcement of a positive result for a case of mad cow disease in Brazil, prices were not affected as the market is awaiting the second and final analysis. During the second analysis, authorized Brazilian exporters stopped producing and loading beef for China as a precautionary measure. No official announcement indicating a potential temporary suspension of exports to China has been communicated.

Brazil: Government of Mato Grosso Do Sul Follows With Concern Embargo on Beef Due to the Case of Mad Cow (Feb 24)

In view of the confirmation of a case of Bovine Spongiform Encephalopathy ('mad cow disease') in a 9-year-old male animal on a small property in the municipality of Marabá (PA), the Government of Mato Grosso do Sul has been following the health recommendations of the Ministry of Agriculture. On Feb 24, the governor of the state, Eduardo Riedel will receive a report on the impact caused on the MS market due to the embargo on exports to China and also a summary of IAGRO's actions regarding the internal surveillance system. The intention is to send a letter to the Minister of Agriculture and Livestock (MAPA) with suggestions for the immediate re-establishment of trade with that country.

Brazil: Average Daily Price of Live Cattle in Brazil Continues to Show an Evolution of 7.3% in February (Feb 24)

The live cattle market had been maintained in an environment that was strengthened by the good conditions of the pastures, allowing ranchers the possibility of keeping the animal in the pasture and seeking better marketing conditions. And the need for some slaughterhouses to recompose their low slaughter scales, combined with a certain improvement in the export market, had been contributing to maintain a more balanced environment and, also, to maintain the price in recent days. The result is that the follow-up carried out by Pec Site indicates an evolution well above the historical one in this period of the month. That is, while the evolution index during February reached 7.3%, the history of the last 13 years indicates an evolution of only 1%.

Paraguay: The Fat Farm Market in Paraguay Was Paralyzed Due to an Atypical Case of Mad Cow in Brazil (Feb 21)

The positive result of atypical mad cow in the first sample that was taken from an adult cow in a cattle farm in the state of Pará in Brazil, opened a window of speculation in the Paraguayan meat complex in view of the consequence that could mean a temporary departure from the largest world exporter of meat from the Chinese market. Although the definitive result of the second test that was sent to Canada for analysis will be communicated on Feb 23, the Paraguayan refrigeration companies decided to stop purchasing animals for slaughter until official information is known. Prior to the cessation, the fat cattle market had prices rising week by week, and the last list reference was USD 3.60/kg carcass for males and heifers, and USD 3.15/kg for cows. If the definitive analysis is confirmed, China would stop receiving meat from Brazil for a period of four weeks, which, according to the background, could be a shorter time, as happened in 2019, or a longer period, such as in 2021, which reached two months.

Paraguay: Serratti on the Mad Cow Case in Paraguay (Feb 23)

The confirmation of the atypical case of mad cow in Brazil and the automatic temporary departure of China, is generating movements on the international board of bovine meat, considering that the players are the world's main exporter and importer of the product. In Paraguay, a window of uncertainty was opened due to the possible presence of Brazilian red protein in common markets and had an impact on a reduction in the price of cattle by 40 cents on the dollar. The president of the Paraguayan Association of Meat Producers and Exporters (APPEC), Fernando Serrati, assured Valor Agro that the producer is the most affected and punished in this situation, but that it is important that the meat complex and the government see the opportunities that this scenario offers Paraguay, and not the consequences. 

Paraguay: Fat Cattle Price Fell 40 Cents in Paraguay (Feb 23)

The price of fat cattle for export registered a drop of 40 cents/kg carcass in Paraguay, after the confirmation of an atypical case of mad cow in Brazil and the temporary exit from the Chinese market. The refrigeration companies went out to buy animals for slaughter with references for males and heifers of USD 3.20/kg for meat and USD 2.80 for cows, according to the survey of Valor Agro. The new prices were announced on Feb 23, after the plants were out of purchase since Feb 20 at noon waiting for the result in Brazil. Brazil represents more than 40% of the purchase of beef from China and before the temporary departure it must redirect merchandise to other destinations that may be common with Paraguay and would affect the purchase prices of the markets, as the President told Valor Agro on Feb 21 of the Paraguayan Chamber of Meat (CPC). 

Belgium: Fewer Cattle Slaughters (Feb 23)

In 2022, 755K cattle were led to slaughter. That was 2% less than in 2021 and 4% less than in 2020. A gradual decrease in the number of slaughters has been visible in this sector since 2017.

Austria: Fewer Cattle in Stables (Feb 20)

As of December 1, 2022, 1.86M cattle were kept across Austria, around 0.5% less than a year ago. The stocks diverged significantly depending on the age group. For example, the number of calves for slaughter fell by more than 70% to 44K, while the number of dairy cows increased by 4.6% to 550.6K. Due to methodological adjustments, however, the figures for this animal category are only of limited significance this year, according to the statisticians. The fact is, however, that the number of cattle farmers decreased again. As of the reporting date, 2.2% had given up again. The remaining 52.5K farms kept an average of 35 cattle.

UK: DEFRA Commits to Using Every Tool in the Toolbox to Eradicate Bovine TB (Feb 21)

At the National Farmers Union conference, Defra minister Mark Spencer said he will ‘follow the science’ on bovine TB, but admitted there’s ‘a long way to go’ for the whole industry. Speaking at the National Farmers Union Conference on February 21, Spencer recognized the need to move to the next phase of bovine TB (bTB) eradication and called for the whole industry to remain resilient as it continues to tackle the disease. “I know how devastating it can be to livestock, to cattle owners, whose business is affected by [bovine tuberculosis],” he said, adding that the industry must ‘use every tool in the toolbox to eradicate this disease’. Trials for a CattleBCG jab and new skin test have moved to the next phase, as announced by the animal and Plant Health Agency earlier this month. If this phase is successful, the industry will be another step closer to vaccinating cattle against the disease. 

Denmark: Taxing Farming Key for Denmark’s Climate Target (Feb 21)

Denmark should aim to reduce beef and dairy production by levying an emissions tax on farming of USD 108/MT (750 Danish crowns) in order to reach its ambitious climate targets, the government's independent adviser said. Such a tax on farming will increase the incentive for farmers to switch to crops and pork production which emit less greenhouse gas than cattle, according to a report by the Danish Climate Council, which provides recommendations to the government. The new government said in December it sees an emissions tax on farming as crucial to achieving a binding target of reducing CO2 emissions by 70% of 1990 levels. Emissions from belching cows are a major component of agricultural methane. If no new policies are introduced, farming in Denmark is expected to account for around 40% of emissions in 2030, the council says. The sector currently accounts for 28% of emissions, according to Statistics Denmark.

Colombia: Started Vaccination Against Foot-And-Mouth Disease in the Border Areas With Venezuela (Feb 21)

The additional cycle provides a sanitary shield to Colombian livestock, in addition to complying with a requirement to enter export markets. On February 20, the additional vaccination cycle against foot-and-mouth disease began, which will be effective for 30 consecutive and uninterrupted days and ends on March 21. The cycle will take place in six departments that are part of the border with Venezuela: La Guajira, Cesar, Norte de Santander, Arauca, Vichada and the municipality of Cubará in the department of Boyacá. 

Russia: The Number of Cattle Has Decreased in Tatarstan (Feb 20)

At the end of 2022, there were 913.5K heads of cattle in all categories of farms in Tatarstan. This is 2.7% less than on the same date of the previous year. At the same time, the number of cows in Tatarstan increased by 0.3% compared to the end of 2021. There were 328.2K of them in the republic.

Russia: Bashkiria, Bison From Belarus Are Expected (Feb 24)

Eighteen bison for breeding will be brought to Bashkiria from Belarus in May. Enclosures are being prepared for them in the Kugarchinsky district, RIA Novosti reports with reference to the head of the region, Radiy Khabirov. Earlier, the Bashkir delegation, during a working visit to Minsk, agreed to create a population of bison in Bashkortostan. “The idea to create a population of bison in Bashkortostan was supported by scientists, the climate of the republic, the features of our nature are suitable for these rare animals,” Khabirov said. The bison breeding project was approved by the Russian Ministry of Natural Resources. A working group has been created in Bashkiria to deal with the introduction of bison.

South Korea: Farmers Will Participate in Voluntary Reduction to Stabilize Supply and Demand (Feb 21)

Farmers participate in voluntary reduction to stabilize supply and demand. The government also needs to come up with additional measures to expedite national support. While the number of Korean cattle raised exceeds 3.57M, recording an all-time high, the complaints of Korean cattle farmers, who are suffering from a double whammy due to rising production costs and falling prices of Korean cattle, are growing. The government announced measures to stabilize the supply and demand of Korean beef on the 13th, but the field is demanding efforts to reflect the national budget. Kim Sam-joo, head of the National Korean Beef Association, held a press conference on the 16th and emphasized four issues for the crisis in the Korean beef industry: resolving supply and demand issues, establishing a Korean beef platform, exporting Korean beef, and enacting the Basic Korean Beef Act.

Ukraine: For the First Time, Lviv Livestock Farmers Will Be Paid a Subsidy for the Increase in Cows (Feb 21)

Micro, small and medium enterprises in the cattle breeding industry of the Lviv region have the opportunity to receive financial support from the regional budget in 2023 in the form of a subsidy for increasing the number of cows. This direction is foreseen by the Comprehensive Program for the Support and Development of Agriculture in the Lviv Region for 2021-2025, the Department of Agro-Industrial Development of the Lviv Regional State Administration reported. A subsidy for the increase of cows will be provided to business entities on a non-refundable basis in the amount of up to USD 809.84/ head (UAH 30K) for the increased or newly created herd of cows in the period from April 1, 2022 to April 1, 2023, identified and registered in accordance with the law. The subsidy will be calculated on the difference in the number of cows between these dates, confirmed by an extract from the Unified State Register of Animals. 

Zimbabwe: The Zimbabwean Government Seeks to Grow the National Herd (Feb 26)

The Government has pledged to grow the national cattle herd to ensure self-sufficiency and to improve diets in the country. This was said by Lands, Agriculture, Fisheries, Water and Rural Development Deputy Minister Davis Marapira at a stakeholders’ meeting, where he led a delegation that included the chief director of Veterinary Services Dr. Josphat Nyika to assess the country’s ability to increase its herd. The national herd currently stands at 5.4M. While tick-borne diseases killed at least 500K cattle in the past five years, deaths from these illnesses are now falling fast after several strategies launched by the Government and farmers are following the advice of veterinary experts. Besides the protection of breeding heifers and cows from slaughter, the Government is also employing the use of artificial insemination to grow the national herd.

Fresh Beef

Global: The World Beef Market Expected to Reach USD 421.6B in 2028 (Feb 24)

According to a recent report, the global beef market is expected to reach USD 421.6B in 2028. Increased demand is driven by rising populations and income levels, particularly in developing countries. The report found that the industry is also faced with challenges, such as concerns over animal welfare, environmental impact, and health risks. Trade disputes, food safety regulations, and supply chain disruptions continue to significantly impact the industry. The beef industry invests in marketing and advertising to promote beef consumption. The global beef industry was valued at USD 332.28B in 2022. The United States was historically one of the largest consumers of beef meat globally.

US: A Strong Second Quarter Is Expected for Red Meat Demand in China (Feb 21)

After easing of restrictions, a COVID wave quickly moved through China at the start of 2023. Now that the wave has eased, Chinese consumers are quickly returning according to the US Meat Export Federation China Director Polly Zhao. In 2022, the United States exported 243.5K MT of beef to China at a value of USD 2.2B, setting value and volume records. 

US: Legislation Proposed to Suspend Brazilian Beef Imports (Feb 23)

US Senators Mike Rounds (R-SD) and Jon Tester (D-Mont.) reintroduced legislation to suspend Brazilian beef imports until experts can verify the food safety and animal health risk of the commodity. This legislation would require Brazilian beef to be deemed safe for consumption before it enters US markets. A moratorium would be imposed on the beef until a group of food safety, animal health and trade experts can recommend an import status. In November 2021, the bill was originally introduced after Brazil delayed reports of animal diseases. Brazil waited until September 2021 to report two cases of atypical bovine spongiform encephalopathy (BSE) to the World Organization of Animal Health (OIE). Brazil implemented similar prolonged waiting periods in 2012, 2014 and 2019. 

Australia: A Total of Above 1M Cattle on Feed in Australia Was Recorded for the December 2022 Quarter (Feb 20)

A total of 1.15M cattle on feed in Australia was recorded for the December 2022 quarter. The latest national feedlot survey results, published by the Australian Lot Feeders' Association and Meat & Livestock Australia demonstrate the 20th quarter in a row where cattle on feed have remained above 1M head; setting what has become the new normal for the feedlot industry. In all, a total of 1.15M cattle on feed in Australia was recorded for the December 2022 quarter, an increase of 89.17K on the previous quarter. Each state recorded increases in cattle on feed. Queensland feedlots led the way with an increase of 7.9% to 675.87K head, New South Wales increased by 4.4% to 318.91K head, Victoria increased by 9.5% to 49.40K head, South Australia increased by 7.7% to 41.81K head, and Western Australia increased by 46.6% to 59.24K head.

Canada: Outlook for Beef (Feb 25)

The outlook for Canadian beef producers remains strong for now with even stronger days in future years. “Prices continue the last two year’s growth trend for cattle and hogs,” Farm Credit Canada economics editor Jane Roberts noted in the FCC outlook for 2023. Trends affecting prices range from continuing cattle herd declines to feed costs to global meat demand in a slowing economy. Canada exports about 45% of its beef production. Declining cattle herds increase short-term production as herds are sold off but will benefit prices in the long run. The United States cattle herd hasn’t been this low since the 1960s. Widespread drought is expected to cut the herd by 4% in 2023.

Ireland: Shipments of Irish Beef on Route to Markets in China (Feb 21)

Shipments of Irish beef have been processed and on February 21 were on route to markets in China, Agri-land learned. Last month, at least two Irish beef factory chains began processing cattle that were eligible for export to the Asian country. These beef kills commenced in W4 (January 29), at a number of outlets across the country. It takes six to eight weeks for Irish beef to reach markets in China, traveling overseas in frozen containers on ships. Beef processors told Agri-land that when the announcement of the market reopening was first made in January of 2023, confidence in exporting any significant volumes of beef to the Asian country was “initially low”.

Ireland: Responding to an Uplift in Demand for Beef in China (Feb 24)

Ireland is in a position to respond to any uplift in Chinese demand for beef following the suspension of Brazilian beef exports to China. That’s according to the senior manager of Bord Bia’s Meat and Livestock team, Joe Burke. Irish beef regained access to the Chinese market in early January of this year. Earlier in W8, authorities in Brazil confirmed a case of atypical bovine spongiform encephalopathy (BSE) in a nine-year-old male bovine animal, discovered on what was described as “a small property” in the state of Para, in the north of the country. Bord Bia’s Joe Burke said, “this is potentially significant for the Chinese beef market since Brazil accounted for more than 40% of total beef imports there in 2022.” 

Brazil: Forecast to Reach 3M MT of Beef Exports by 2030 (Feb 21)

According to an evaluation by the Brazilian Agricultural Research Company (Embrapa), Brazil's leading role in terms of beef exports is the result of decades of investment in technology, which has allowed raising not only productivity, but also quality of the product, becoming highly competitive. Embrapa points out that beef exports represent 3% of Brazilian exports and 6% of the total national GDP, which represents 30% of the Agribusiness GDP, with an annual turnover of more than USD 77.22T (400T reais). On the other hand, from the Brazilian Association of Meat Exporters (Abiec) they show that Brazilian beef exports should exceed the mark of 3M MT between 2025 and 2030.

Brazil: Brazilian Exporters Will Not Have Losses With Mad Cow (Feb 23)

The Brazilian Foreign Trade Association (AEB) predicts that the confirmed case of mad cow, which led the federal government to suspend beef exports to China, should not cause losses to Brazilian exporters, only a postponement of sales. As it is an isolated case, the expectation is that there is no contamination of the herd; and the fact that Brazil made the problem public and paralyzed shipments also had a positive impact on the resolution and tended to accelerate the resumption of exports, which revolve around USD 500M/month.

Brazil: Small and Medium Beef Slaughterhouses Seek Support From the Ministry of Agriculture to Expand Exports (Feb 25)

Small and medium-sized slaughterhouses want support from the federal government so that they can export more beef. The request was made by the Brazilian Association of Refrigerators (Abrafrigo) during a meeting with the Minister of Agriculture and Livestock, Carlos Fávaro on Feb 24, in Brasília. According to the entity, Brazil needs to intensify negotiations with the main meat importing markets to increase the number of slaughterhouses authorized to export. The entity also requested greater access for its members to international fairs and exhibitions, so that they can promote their products. “Brazilian beef exports, which reached revenues of USD 13B and a volume of 2.34M MT in 2022, are still highly concentrated in the hands of a few companies”, said the executive president of Abrafrigo, Paulo Mustefaga. 

Argentina: Agriculture Established the Distribution of the Annual Meat Export Quota to the US (Feb 22)

In 2022, exports to the United States had a 6.3% annual drop and totaled USD123.73B, at a rate of USD 6.25K/MT. The Ministry of Agriculture, Livestock and Fisheries ordered the distribution of 18.383M MT of beef that will be exported to the United States in 2023, out of a total quota of 20K MT assigned by the US Department of Agriculture. The allocation, which follows parameters similar to those of the so-called "Hilton Quota" with the countries of the European Union (EU), was established in resolution 48/2023 published on Feb 22 in the Official Gazette.

Uruguay: Price Decrease of Uruguayan Beef During W8 (Feb 24)

The Gulfood fair that took place in W8 brought a large number of participants, such as Chinese importers who were interested in Uruguayan beef. Demand is forecasted to increase in the upcoming weeks. During W8, operations with China slowed down before the fair with a drop of around USD 50-100/MT, depending on the cut. Deals were made from Uruguay for shin and shank at USD 6.7K/MT, chuck and blade at USD 4.9K/MT, round cuts at USD 5.8K/MT, and trimming 80 VL at USD 3.6K-3.65K/MT, all CFR.

New Zealand: Strong Outlook for New Zealand’s Beef (Feb 24)

Tight global beef supplies and steady demand for New Zealand beef are expected to support healthy farmgate prices for New Zealand beef producers through to 2025, Rabobank says in a newly-released report. But with a number of key challenges facing the industry, including the need to decrease greenhouse gas emissions and to reduce bobby calf processing requirements, the bank says new ideas and strategic investment will be required by the industry to find solutions to these challenges and to extract more value from the beef supply chain. In the new report Capitalizing on tailwinds through 2025, Rabobank says the beef industry has performed exceptionally well over recent years.

New Zealand: Local Sale Yard Prices of Meat in W7 (Feb 25)

In New Zealand, the average local slaughter and export price trends for W7 areas follows W7 vs. W6:

  • Steer NI P2, 300kg - USD 3.60/kg (NZD 5.85/kg) vs. USD 3.57/kg (NZD 5.80/kg) + 0.8% marginal increase

  • Export Bull, USA - USD 5.32/kg (NZD 8.63/kg) vs. USD 5.24/kg (NZD 8.51/kg) + 1.4% increase

UK: Beef Meat Exports (Feb 20)

According to the latest data from HMRC, the total value of red meat shipments increased 22% YoY with over 609K MT exported around the world, up 9%. Beef exports brought the biggest boost to the figures, with the value of shipments up nearly 46% to USD 680.66M (£640M), driven by the recovery of trade with the EU. Pig meat exports reached USD 662.58M (£623M), up almost 10%, followed by sheep meat exports which were valued at USD 534.96M (£503M), a rise of 13% YoY.

Colombia: Advances in the Task of Conquering the Chinese Beef Market (Feb 20)

The recovery of the sanitary status as a country free of foot-and-mouth disease with vaccination in 2020 has allowed Colombia to advance in the process of admissibility of beef and pork destined for China. The lifting of restrictions on the export of beef and pork to the People's Republic of China is a significant achievement for Colombia. This is largely due to the coordinated work between the Ministry of Agriculture and Rural Development, the Colombian Agricultural Institute (ICA) and the country's livestock sector. However, the ICA clarifies that this does not mean a free hand for exports to China, since there are still processes with Invima and other entities, but it is an advance that opens the possibilities of the market. In 2010, the Colombian government and the cattle union showed interest in exporting beef and pork to China, which started an admissibility process that lasted for many years. 

South Korea: Stabilize Beef Prices by Reducing 140K Cows by 2024 (Feb 20)

Minister of Agriculture, Food and Rural Affairs Jeong Hwang-geun announced on the 20th that he would reduce the number of cows by 140K by 2024 to resolve the oversupply in relation to the recent drop in Korean beef wholesale prices. In addition to reducing cows, Minister Chung announced plans to hold nationwide simultaneous discount events of up to 50% at Nonghyup and major hypermarkets throughout the year to recover Korean beef consumption. Farmers' cattle breeding increased, consumption decreased, and wholesale prices fell more than 20% from a year ago. However, since distribution costs were reflected in the retail price of Korean beef, the extent of the decline was not large, so consumers responded that it was difficult to feel the decline in Korean beef prices.

China: January Beef Exports to China at 12-Month Lows (Feb 24)

The main suppliers of the Chinese beef market shipped some 185K MT in January, according to estimates by Faxcarne based on partial data from exporting countries. This is the lowest monthly volume since January 2022, 12 months ago. In addition, they are some 66K MT less than the record of last August when 252K MT were shipped. The Mercosur countries would have exported some 149K MT (Argentina's data is estimated), while those of Oceania sent 26K MT to this destination. In December the United States exported less than 11K MT to China and this volume is not expected to have increased significantly in January.

China: Firm Carcass Demand From Uruguay and Chile in the Chinese Market During W8 (Feb 24)

During W8, the carcass demand for beef and lamb was firm in China. Offers per bone-in beef quarter from Chile were at USD 4.95/MT and USD 4.4K/MT from Uruguay, CFR. Deals for lamb carcasses ranged at USD 4.7K-4.9K/MT, CFR.

Indonesia: Ahead of Ramadan, Indonesia Imports Enough Meat (Feb 21)

Approaching Ramadan, Indonesia opens imports of food commodities, especially meat and sugar to meet demand. Imports were given to 2 BUMNs in the form of assignments, namely ID Food and Perum Bulog. The first is buffalo meat which the government has assigned Perum Bulog to immediately import 100K MT of buffalo meat from India. Later, the buffalo meat imported by Perum Bulog will be sold at around USD 5.22/kg (IDR 80K). Then the second is beef, which, an assignment was given to ID Food to import Brazilian beef immediately. The Import Approval Letter has been issued by the Ministry of Trade (Kemendag). Main Director of ID Food Frans Marganda Tambunan revealed that his party would gradually import 100K MT of Brazilian beef. The budget prepared by ID Food to import this frozen beef, the total purchase is around USD 0.65B (IDR 10T).

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