Rabobank: China’s reopening provides opportunities for beef

Published 2023년 3월 1일

Tridge summary

Retail and farmgate beef prices reached record highs in many regions in 2022 due to increased consumer demand and limited beef supplies, with Brazil achieving record export volumes and returns fueled by growing Chinese demand. However, a decrease in consumer sentiment and beef pricing in late 2022 and early 2023 is expected to impact returns. China's beef demand is anticipated to rise in the latter half of 2023, potentially boosting global beef prices. The US, Europe, Mexico, and New Zealand are also experiencing changes in the beef market, with the US expected to see a decrease in beef production, Europe's beef exports predicted to remain sluggish, Mexico's beef volumes expected to increase despite falling prices, and New Zealand's beef production affected by tropical Cyclone Gabrielle. Cattle prices generally trended downward, with the US seeing less limited supplies supporting higher prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Retail and farmgate beef prices cracked records in many regions in 2022, driven by elevated consumer demand and tight beef supplies. Brazil also achieved record export volumes and returns in 2022, thanks to growing Chinese demand. The softening in consumer sentiment and subsequent weaker beef pricing in late 2022 has flowed through into early 2023. While beef supply settings are favorable for beef prices, consumer confidence will continue to be tested and have a bearing on beef returns. China will remain a focal point, as the world watches to see how quickly the giant emerges from Covid lockdowns amid a slowing economic environment. It is anticipated that Chinese demand for beef will pick up in 2H 2023, boosting global beef prices. The US will be the other focal point. After setting records in both volume and value terms for beef exports in 2022, numbers are starting to show the contraction in production. Beef cow inventory has dropped to the lowest point since 1962 and feedyard ...

Source: EuroMeat