W12: Weekly Beef Update
Live Beef
EU: Turkish Livestock Outnumbered the EU (Mar 22)
The European Statistical Office (Eurostat) published data on the numbers of bovine and ovine animals in the European Union (EU) countries as of the end of 2022. There are more bovine and ovine animals in Turkey than in European Union countries. According to the data, the total number of cattle in EU countries, which was 75.705M in 2021, decreased to 74.856M in 2022. France took first place among EU countries in cattle breeding with 16.986M, followed by Germany with 10.997M, Ireland with 6.552M, Spain with 6.456M, Poland with 6.448M, and Italy with 6.049 M. According to the data of the Turkish Statistical Institute (TUIK), the number of cattle in Turkey as of the end of 2022 was determined as 17.024M. Thus, Turkey ranked first in the number of cattle when compared to EU member states.
US: March 1 Cattle on Feed Report (Mar 20)
Cattle and calves on feed for the slaughter market in the United States for feedlots with a capacity of 1K or more head totaled 11.6M head on March 1, 2023. The inventory was 4% below March 1, 2022, USDA NASS reported. Placements in feedlots during February totaled 1.73M head, 7% below 2022. Net placements were 1.68M head. During February, placements of cattle and calves weighing less than 600 pounds were 345K head, 600-699 pounds were 315K head, 700-799 pounds were 470K head, 800-899 pounds were 424K head, 900-999 pounds were 130K head, and 1K pounds and greater were 50K head. Marketing of fed cattle during February totaled 1.74M head, 5% below 2022. Other disappearances totaled 58K head during February, 2% below 2022.
US: Red Meat Production Dipped in February (Mar 23)
Beef production was 2.092B pounds, a drop of 7% from February 2022 because of a 5% decline in the slaughter to 2.548M head due to tighter available numbers and a 21-pound drop in the average live weight at 1.37K pounds, partially due to relatively high feed costs and younger, lighter cattle moving to market. The monthly dairy cow slaughter was 266.5K head, 31.4K less than in January but unchanged from February 2022. The YTD dairy cow slaughter is 1.149M head, 5.1K ahead of the 2022 pace.
Australia: Thousands of Cattle Feared Lost in North West Floods (Mar 22)
Queensland flood damage goes much further than structural, with more than 50K cattle lost. Communities were left unable to return to their homes in two flooded areas of the Gulf of Carpentaria after late monsoon rains created a vast inland sea earlier this month. Federal and state ministers have since visited the Gulf and conducted damage assessments with the figure estimated in the hundreds of millions of dollars. Katter's Australian Party MPs Bob and Robbie Katter joined Queensland Agriculture Minister Mark Furner, and federal Minister for Agriculture and Emergency Management Senator Murray Watt. Federal Income support mechanisms were rolled out under the Australian Government Disaster Recovery Payment, with people eligible for up to 13 weeks of income support.
Australia: Australian Beef Cattle Prices Continue to Ease During W12 (Mar 24)
The Australian Eastern Young Cattle Indicator (EYCI) continues to slide another USD 0.09/kg carcass weight (CWT) from this time in W11, it is trading at USD 4.47/kg CWT in W12. It is the lowest we have seen the EYCI for over three years.
Brazil: Live Cattle Average Daily Price Points to an Evolution of 9.3% During March (Mar 24)
According to the monitoring of the average daily price of live cattle during March, the ruminant continues to show a higher evolution than that achieved in the same period last year, although the price level, on average, is 19.3% below that received in the same period from 2022. The current daily average price shows an increase of 9.3% over that received on the last closing day of last February, surpassing by almost 8.7% points the index reached in the same period of last year. Information on the reopening of the Chinese market for beef exports brought more encouragement to the market and, as a result, deals with live cattle showed greater heating and price readjustments. The internal market, in turn, does not present greater possibilities in this period of loss in the population's purchasing power, within the religious period of Lent, which traditionally impacts lower consumption.
Spain: Significant Drop in Live Bovine Exports in 2022 Due to the Rise in Prices (Mar 21)
Spanish live bovine exports registered a 31.3% drop last year compared to 2021, mainly due to the rise in the price of animals. According to data from the Ministry of Agriculture, foreign sales stood at the equivalent of 69.92K MT, compared to just over 100K MT in 2021 and 121.5K MT in 2020. The value of these exports was USD 260.44M (239.2M euros), 10.6% less than in 2021. This decrease in exports affected practically all destinations for Spanish live cattle, except Egypt. In the case of Lebanon, the first market, the drop was 15%; shipments to Italy fell 21.4% and shipments to Libya were down 38.9%. Those responsible for the inter-professional of beef cattle, PROVACUNO, have indicated that this evolution is a consequence of the rise in the price of animals. They also add that shipments to Algeria and Türkey were practically nil; in the case of Algeria due to the closure of the country's borders after the change of position of the Spanish Government on the Sahara; in Turkey because Spanish exporters do not consider it a reliable market.
Paraguay: Lower Supply Continues to Drive the Price of Steers (Mar 23)
Compared to W11, an increase of 10 cents was observed in the price of the Paraguayan steer, since it reached USD 3.50 in W12. The restriction of the supply and the work in the local market motivated the rebound of the values in Paraguay. In one week, Brazil cut the price of the steer by one cent (USD 3.56), as a result of the small increase in reais due to the devaluation, going from 5.21 to 5.24 per dollar. For its part, Uruguay reached USD 4.12, an inter-weekly increase of five cents, compared to the previous week. The consignees consider that the demand is currently better supplied. As for Argentina, the farm lost six cents on the dollar due to the devaluation of the peso, so it closed at USD 4.36. The maintenance of the price in pesos and the weekly devaluation made up for this drop; however, it remains the best price in the region.
On the occasion of its 40th anniversary, the Association of Brangus Breeders of Paraguay (ACBP), together with Ganadera Los Lazos S.A., presented the Residual Food Consumption Testing Center (RFI) to the national cattle farm for its acronym in English. The RFI will allow producers to efficiently select the best animals, giving them a competitive advantage that will help reduce costs between 9% and 10% in a certain group of animals.
Belgium: Royal GD Points to Risk of Introduction of Besnoitiosis (Mar 24)
For the past 15 years, there has been a clear advance of the bovine disease besnoitiosis. The number of infected cattle in Belgium has risen sharply in recent years, as a result of the import of animals that turned out to be infected. Besnoitiosis mainly occurs in beef cattle, but cases have also been reported in dairy cattle. Besnoitiosis is caused by the parasite Besnoitia besnoiti. Blood-sucking insects spread it. Another route of contamination is the reuse of hypodermic needles. The average time between infection and outbreak of the disease is 13 days but can be up to two months.
Uruguay: Projection That Uruguayan Beef Stock Will Grow in 2022/23 (Mar 20)
The drastic drop in slaughter and the expectation that last spring's calving was a good change for the evolution of the bovine stock in the current financial year 2022/23. After the decline in 2021/22, the initial projections are for a recovery of the herd that would be of the order of 200K animals. In 2021/22, due to the record of more than 2.7M animals slaughtered, the herd fell by some 373K heads to 11.54M. In 2022/23, with two-thirds of the agricultural year elapsed, everything indicates that the slaughter will drop to around 2.2M head, an impressive decrease of 500K head between one year and the next. In addition, the expectations are of a good calving last spring. The data from the INIA Pregnancy Workshop last year was a rate of 80%, the highest since this activity was carried out. Even though between pregnancy and weaning this year the reduction may be somewhat greater than usual, in any case, the calves that will be counted at the end of the year will surely be more than 2.8M.
New Zealand: Mid Canterbury Controlled Cattle Area Notice Lifted (Mar 20)
A controlled area set up in Mid Canterbury to stop the spread of cattle disease Mycoplasma bovis has been stood down. The Ministry for Primary Industries (MPI) set up the area around the infected ANZCO Five Star feedlot near Ashburton in October after the disease began to spread in the area. Eight farms within the controlled area notice including the feedlot have been cleared of stock and have gone through the cleaning and disinfecting process.
UK: Confirmation of Atypical Case of Mad Cow in 17-Year-Old Animal (Mar 20)
On Mar 20, the World Organization for Animal Health (WHOA) confirmed an atypical case of bovine spongiform encephalopathy in the United Kingdom. Authorities reported that the case occurred in a 17-year-old native cow on a suckling farm and that the animal was slaughtered on February 27, following sanitary protocol. According to WHOA information, the animal was not presented for slaughter and did not enter the food chain. “The entire carcass was disposed of as Category 1 material and poses no threat to food safety or human health. Epidemiological investigations are ongoing,” WHOA said in its report.
UK: Lighter Cattle and Lower Slaughter Drives Beef Production Decline (Mar 22)
Beef and veal production sat at 71.4K MT for February, according to the latest Defra production statistics. This is down 2.9K MT (3.9%) from January levels, and 1.4K MT (1.9%) down on production in February 2022. MoM, lower slaughter figures are the main driver of lower production in February, as prime cattle slaughter levels hit 157.4K head, down 4K head (2.5%) from January. This is similar to the slaughter seen in February 2022, down only 1.5K head (0.9%) and sitting below the 5-year average by 2.3K head. Average carcass weights for prime cattle stood at 343kg/head in February, 0.7kg higher than in January. Despite carcass weights recording little fluctuation MoM, there has been a fall of 7.8kg/head since February last year, driving the overall decline in YoY production. Cull cow slaughter levels show a different picture, with total slaughter for cows and adult bulls at 54.5K head, trending 8.7% (5.2K head) lower than the previous month. Slaughter levels YoY do show an overall uptick of 2.4K head.
Bulgaria: Decreasing Beef Cows (Mar 21)
The number of beef cows decreased by 27.5K/ year. In the production of beef and veal in the country in 2023, a decrease to 16.6K MT is also expected, due to the decreasing livestock. The number of beef cows at the beginning of this year is about 139K, compared to 166.5K at the beginning of 2022. It is expected that the decline in imports will continue this year as well. The limited supply will drive prices up to average annual levels of around USD 3.57/kg (BGN 6.40) carcass weight.
Peru: Find Out What Diseases Could Impact Our Cattle Due to Heavy Rains and Landslides (Mar 22)
The National Agricultural and Animal Health Service of Peru (Senasa) reported that the livestock production sector must consider all biosecurity and hygiene measures, especially in areas where the rains and downpours generated by the Yaku cyclone in the country have hit the hardest, due to the latent possibility of regrowth of diseases such as anthrax and bovine rabies. In the case of anthrax, the regions that are at risk of outbreaks are Tumbes, Piura, Lambayeque, La Libertad, Lima Callao, Ica, Moquegua, Tacna, and Áncash. Bovine rabies is transmitted by the common hematophagous bat, since this disease is present in the regions of Amazonas, Apurímac, Ayacucho, Cajamarca, Cusco, Huánuco, Junín, Loreto, Madre de Dios, Pasco, Piura, San Martín, and Ucayali. In the case of rabies, a loss of at least USD 798.93K (S/3M) is estimated without considering the real effect of underreporting vampire attacks on livestock.
Morocco: Importing More Than 7K Heads of Cattle Destined for Slaughter in Al-Bayda (Mar 25)
The Regional Directorate of Agriculture of the Casablanca-Settat region announced that, for the region, 7,048 heads of livestock destined for slaughter in good conditions had been imported from Spain by 10 importers, of which 6,448 were cows and 600 were sheep. The Directorate stated in a statement that during March, 5,129 heads of livestock were imported, including 4,529 heads of cows and 600 heads of sheep, compared to 1,919 heads of cows that were imported during February 2023. According to the directorate, this operation took place while respecting the health standards and conditions imposed by the National Office for Health Safety (UNSA), intending to fill shortages, supplying local markets with red meat, and supporting the stability of its wholesale and installment prices.
Morocco: Receives 2.8K Heads of Brazilian Cows (Mar 26)
On Mar 25, Morocco arrived with a shipment of 2.8K heads of cattle imported from Brazil to the port of Jorf Lasfar in El Jadida, intended for slaughter, within the framework of supplying the national market with red meat and supporting the stability of its wholesale and installment prices. On this occasion, Hssaine Rahawi, Regional Director of Agriculture in the Casablanca-Settat region, explained that this process related to the import of cows, which is the first and largest shipment to arrive from Brazil destined for slaughter, falls within the framework of measures taken by the government in order to ensure normal supply to the national markets with red meat.
Fresh Beef
Tridge Analysis: European Beef Prices to Remain High Through 2023 as Production Continues to Decline (Mar 21)
According to European Commission (EC) data, EU 27 beef carcass prices (adult male, indicative) started March on the rise, increasing to a fresh one-month high of USD 5.59/kg (EUR 5.14), up 0.7% WoW and 9% YoY. Prices fell 0.5% MoM, but that is because prices had risen to a record high of USD 5.62 (EUR 5.17) in the first week of February. Behind the increase are expectations of lower domestic production ahead, as the EU 27 faces high input costs and uncertainty over new environmental restrictions which will likely put pressure on its cattle herd.
US: Beef Exports Set All-Time Record (Mar 22)
Global beef exports have hit a record for volume and value, adding more value to US beef cattle and providing markets for products not currently used in this country. Those international markets for beef variety meats boosted exports by 15% in 2022 compared to 2021, accounting for USD 1.24B of the total USD 11.68B in US beef exports. John Hinners, senior vice president of industry relations for the US. Meat Export Federation, says, “Beef exports add nearly USD 450/head of fed slaughter value. Global export value is up 10% from the previous record and nearly 40% above the previous five-year average.” China’s reopening provides opportunities for beef. Total US beef exports in 2022 hit 1.47MT. The top eight importers of US beef include South Korea, China/Hong Kong, Taiwan, the Philippines, Singapore, Colombia, Guatemala, and the Dominican Republic.
US: Challenging Month for US Beef Exports, but Bright Spots Emerge (Mar 24)
January beef exports were down substantially in most Asian destinations compared to the large year-ago totals, according to the US Meat Export Federation. The decline was especially sharp in South Korea, where volume dipped 36% to 18.9K MT and value fell 52% to USD 151.5M. Korea is coming off a record year in which exports set a record value for any single destination, reaching USD 2.7B. The decline was less pronounced in Japan, where January exports were down 2% to 22.46K MT, with value falling 20% to USD 144.9M. Exports to China/Hong Kong, which also reached new heights in 2022, fell 24% from a year ago to 14.98K MT, valued at USD 125.3M. China lifted COVID-related restrictions on residents and travelers late last year and eliminated testing and disinfection of imported cold chain products in January. But these changes came amid a significant wave in COVID cases, which likely delayed any boost in consumer demand. Beef exports to Mexico showed positive momentum in January, climbing 20% from a year ago to 17.48K MT, valued at USD 94.7M, up 19% and the highest in more than a year. US beef could soon face heightened competition in Mexico, as earlier this week Mexican officials finalized import requirements for some imports from Brazil. This will be the first time the country has opened to Brazilian beef.
Mexico: Mexican Meat Exports Fall by More Than 14% (Mar 23)
The Agricultural Markets Consulting Group (GCMA) reported that in the accumulated between January and February, total meat exports (80.06K MT) fell 14.3% while total imports rose 11.6% with a 25.4% higher value. Bovine farming, with contractions but continues with a surplus of almost USD 200M. By subsector, in the case of livestock, shipments of bovine meat fell by 13.9% with something close to 49K MT, however, the export of live calves rose 30.7%. Regarding imports, Juan Carlos Anaya's consultancy explained that these were 16.2% higher, with 30.4K and a value almost 13% higher, of USD 228.6M. Despite this, the Mexican bovine trade balance (which includes meat and live cattle) is in surplus with USD 198.6M.
Germany: Exporting Less and Less Meat (Mar 21)
Meat exports, including meat products, fell by 6.9% in 2022 to 2.9M MT, and meat imports fell by 4.5% to 2.0M MT. Total meat production in Germany fell by 8.1% last year to 7.0 M MT. Beef exports fell by 11.4% over the same period to over 254K MT. One of the reasons for the decline in meat exports may be import restrictions in importing countries such as China. While in 2017, 9.7% of the goods went to China of all German meat exports, in 2022 it was only 0.1%. Beef production also fell by 12.8% over the same period. In 2022, commercial slaughterhouses still produced around 984.6K MT of beef.
Brazil: With Suspended Beef Shipments to China, the Daily Average Drops 17.86% WoW (Mar 20)
On Mar 20, the Foreign Trade Secretariat (Secex) reported that the exported volume of beef reached 89.8K MT until the third week of March 2023. In the previous year, the total volume exported in March was around 169.1K MT in 22 working days. The daily average exported in the third week of March was 6.9K MT and had a drop of 10.1%, compared to the observed in March of the previous year, which was 7.6K MT. In the weekly comparison, the daily average had a retreat of 17.86%, compared to the previous week, which was at 8.4K MT. According to the Analyst at Safras & Mercado, Fernando Henrique Iglesias, the information provided by the Secretariat is already beginning to reflect the effects of the suspension of exports to China due to the mad cow outbreak in Brazil.
Brazil: Chinese Beef Imports Exceed 428K MT in the First Two Months of 2023 (Mar 20)
The result was the highest in history both in volume and in value transacted for February, reaffirming China's position as the largest global importer of beef protein. Over January and February of the current year, more than 428.3K MT of beef were landed in Chinese ports, an increase of 36.1% YoY compared to the same period of the previous year. The value transacted in this mega-operation exceeded USD 2.3B, registering a growth of 15.9% YoY compared to the first two months of 2022. In 2023, China's accelerated economic reopening has the potential to further boost local consumption, given that trade, tourism, and similar segments are among those most linked to the consumption of imported beef. However, the effect of the recent suspension of Brazilian beef protein exports to China should reduce the total volume imported in the coming months, given that Brazil represented around 46% of the total unloaded at Chinese ports in 2023 and that there is an average delay 40-60 days in posting results at Chinese customs.
Brazil: Mato Grosso Meat Sales Abroad Fall by 10% But Are Above the Average of Recent Years (Mar 20)
Beef exports from Mato Grosso totaled 42.88K MT of carcass equivalent last month, a reduction of 10.18% compared to January. Revenue followed the same pace and decreased by 10.59% MoM. The drop in meat sales to customers in several countries was mainly driven by the embargo of protein certifications for China, which occurred in the last weeks of the month. The volume exported to the Asian country in February was 14.26% lower than that observed in the previous month. However, despite the reduction in total shipments in the monthly comparison, the volume is still 32.73% above the average exported in February of the last 5 years. In this sense, the livestock market is still waiting for the resumption of Chinese purchases, which the Ministry of Agriculture and Livestock expects to occur later this month.
Brazil: Beef Exports in Brazil Fall by More Than 15% Due to Bovine Spongiform Encephalopathy (Mar 21)
In February, Brazilian beef exports totaled 152.28K MT, which represented a 16% decrease compared to the same month last year, a result that the industry attributed to the most recent atypical case of Bovine Spongiform Encephalopathy (BSE). In the Brazilian Association of Refrigerators (Abrafrigo), they explained that this is due to the suspension of imports by China as a precautionary measure, a country that despite current conditions, remains its main market.
Brazil: Mato Grosso Can Surpass Goiás and Mato Grosso Do Sul Together in Gross Production Value (Mar 22)
Data from the Ministry of Agriculture and Livestock referring to the Gross Value of Agricultural Production (VBP) are positive for the year 2023 throughout Brazil. With an increase in production, totaling 8.9%, the field should inject USD 0.25T (BRL 1.249T) into the Brazilian economy this year, the highest VBP in the last 34 years. Despite the drop in the price of cattle per arroba and in annual revenue, which reaches 3.4% compared to 2022, a financial result for the gate is expected to be within USD 71.05B (R$ 362B). Compared with other states, such as Goiás, which expects a VBP in beef cattle of USD 2.94B (15B) and Mato Grosso do Sul, which seeks a value of USD 3.24B (16.5B), Mato Grosso is close to surpassing the combined values of the two neighboring states. In Mato Grosso, the VBP in 2022 reached USD 39.65B (202.01B reais). For 2023, the expectation is USD 42.39B (215.96B). In Mato Grosso livestock, in 2022 the VBP was USD 5.10B (25.97B), with a probability of reaching USD 5.72B (29.16B) in 2023.
Brazil: China Agrees to Resume Imports of Brazilian Beef, Authorizes Four New Plants (Mar 23)
Efforts by the Brazilian government to lift a month-long ban on beef exports to China paid off on Mar 23, as Beijing agreed to resume imports while also approving four new beef packers based in Brazil, according to authorities in both countries. China's General Administration of Customs approved the resumption of imports of Brazilian beef and authorized the new plants a day after Brazilian Agriculture Minister Carlos Favaro arrived in Beijing ahead of a visit by Brazilian President Luiz Inacio Lula da Silva in W13. Sales of Brazilian beef to China were voluntarily halted by Brazilian authorities on Feb. 23, following the discovery of an atypical case of mad cow disease. More than a quarter of the business leaders traveling to China with President Lula come from Brazil's booming meat industry, highlighting the high stakes for a sector reliant on Chinese demand for most of its exports.
Brazil: Chinese Beef Demand Expected to Continue Rising (Mar 23)
Chinese demand for beef may continue to increase in 2023, resulting in a total of 3.52M MT. This number represents expected growth of 2% concerning the volume imported in 2022. China is the country where Brazil exports the most beef, representing approximately 60% of the total production of the Brazilian product. Brazil is a major exporter of beef to China, and the suspension of exports has negatively impacted the sector. “The resumption is essential for the country to remain an important supplier of animal protein to the Chinese market", said Fábio Pizzamiglio, director of Efficienza.
Brazil: USDA Projects a Significant Increase in Beef Exports From Brazil for the Coming Years (Mar 23)
A report released by the USDA at the end of last year projects that Brazil will further consolidate itself as the largest country operating in the international beef trade over the next few years. Considering only the largest exporting countries, a growth of 24.5% in volume is projected, from a trade of 11.456M MT in 2021 to 14.257M MT in 2032. Among them, the largest volumes shipped in 2021 were in charge of Brazil, the United States, India, and Australia. However, according to the USDA Committee on Agricultural Projections, significant changes will be happening by 2032. Brazil will further consolidate itself on the world stage as the largest exporter of beef, increasing traded volume by almost 75%, going from a 20.3% share of international trade in 2021 to a significant 28.5% in 2032. Brazil's beef export growth is supported by expanding global demand, particularly strong Chinese demand.
Paraguay: Ghana Remains in the Top 10 Meat Markets of Paraguay (Mar 20)
At the end of February, Paraguay exported 1,082MT of beef to Ghana for a value of USD 4.8M, which places it in ninth place in the ranking of the ten main markets for animal protein. According to data from Senacsa, during the first two months of 2022, there was no export of meat to this market, only shipments of 278MT of bovine offal for USD 318.43K. Ghana is an alternative market for Paraguayan meat that has increased its participation since July 2022. Last year it closed with 1.44K MT shipped for USD 6.8M. Regarding the other meat destinations, Chile was positioned as the main one with 46% participation, followed by Brazil, Taiwan, Russia, and Israel with 12%, 10%, 8%, and 3%, respectively. While the European Union (3%), Maritime Suppliers (2%), and Kuwait 1% also stood out until the second month of 2023.
Argentina: Completing the First Export of Bovine Meat to Mexico (Mar 21)
After more than 10 years of negotiations, the first export of Argentine bovine meat to Mexico was finalized on Mar 21, from the Ezeiza international airport, where agents of the National Agrifood Health and Quality Service (Senasa) verified the quality of the merchandise shipped. The commercial sample, from the Argentine establishment Arrebeef, consists of a ton of different cuts of beef. It should be noted that there are another 21 establishments that have the authorization to export to this destination.
In February, the volume of beef exported by Argentine slaughterhouses grew again, despite all the competitiveness problems in the sector. According to what INDEC reports, sales totaled 51.5M MT of product weight, which means close to 73K MT of bone-in beef. The amount is similar to that of January of this year, being February a month with fewer business days, it translates into a daily increase in business. Compared to the same month in 2022, when a period of very good sales to China began, volume growth was 7%. Shipments to that destination, which for a few years has been the largest buyer in the Southern Cone countries, accounted for almost 77% of the total exported, marking an increase of 3.4% compared to January. This loss of income for breeders, on the contrary, gave back to the export business the competitiveness lost due to export rights and the exchange rate unfolding.
China: Reopening Provides Opportunities for Global Beef Market (Mar 21)
Most of the world has reopened after COVI, however, China has had ongoing restrictions which influenced consumption. Now, as the restrictions go away, the changes in Chinese beef consumption could impact global beef markets. The reopening will offer business opportunities but also generate volatility in the market. Rabobank expected household consumption to rebound strongly from the low base of 2022. In 2022, food and beverage retail sales saw marginal growth, and food service sales take a big hit. Positive signs of recovery are merging. Rabobank believes that after three years of living under COVID policies, Chinese consumers are more pragmatic, spending more money on the products which they perceive to be practical, valuable, and worthy. Seeking added value will be important for consumers. Weaker economic conditions will have some impact on the beef consumption of low-income groups, which tend to trade down. But to other consumer groups, beef is perceived to bring better taste, more health, and different eating experiences compared with traditional meats. These consumer groups, mainly the younger generations, middle to high-income families, and health-conscious people, are increasing the frequency of their beef consumption. As consumer groups become more segmented, Rabobank sees beef experiencing both trading up and trading down. Rabobank expects a gradual increase in quality beef consumption, although total consumption may increase more slowly.
Indonesia: The Price of Beef Explodes (Mar 21)
The price of beef on the market has skyrocketed ahead of Ramadan. The average price of beef is currently around USD 10.68/kg (IDR 160K) even though beef is needed to cook rendang on the first day of fasting. According to CNBC Indonesia's monitoring, on Mar 21, the price of beef at the East Tebet Market for the thigh section is set at USD 11.34- 12.01/kg (Rp. 170K- 180K). Other beef traders, predicted that the increase in beef would continue until the Idul Fitri holiday. There is a possibility that the increase is around USD 0.67- 1.33/kg (IDR 10K -20K).
Frozen Beef
Global: Top 15 Countries That Exported the Most Frozen Beef in 2021 (Mar 26)
According to FAO, beef is the third most popular meat in the world after pork and poultry. It represents 24% of the world's meat consumption. The FAO predicts that global beef production will reach 75.9M MT by 2030, after being 70.5M MT in 2021, with an estimated growth rate of 5.8%, Finance Yahoo reports. Beef production in the developed world is estimated to remain almost static over this period. All growth to 2030 will come from the developing world. Looking at the developed world by region, Europe's production decline of 5% will be the main reason for static growth, although North America is expected to increase production by 6%. The top 15 countries that exported the most frozen beef in 2021 are Brazil (USD 6.9B), the USA (USD 4.5B), Australia (USD 4.1B), India (USD 2.9B), New Zealand (USD 2.4B), Uruguay (USD 1.99B), Argentina (USD 1.98), Paraguay (USD 769M), Canada (USD 625M), Ireland (USD 591M), Poland (USD 491M), Netherlands (USD 402M), Nicaragua (USD 368M), Belarus (USD 313M), and Japan (USD 256M).
