Rabobank: China’s reopening provides opportunities for beef
Frozen Bone-In Beef
Meat
China
Published Mar 1, 2023
Tridge summary
Following a good year of record-breaking highs in beef exports in 2022, a new report from Rabobank suggests that 2023 will entail softened consumer sentiment and weaker beef prices.
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 ...
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