W48: Weekly Beef Update
Live Beef
Latin America: A Powerful Region in Sustainable Livestock
According to the Food and Agriculture Organization of the United Nations (FAO), countries such as Argentina, Brazil, Chile, Colombia, Costa Rica, Cuba, Ecuador, Honduras, Panama, Paraguay, the Dominican Republic and Uruguay have implemented more than 30 sustainable livestock projects, demonstrating environmentally friendly practices, such as pasture care and residue and waste management, in order to increase profitability and production, and reduce greenhouse gas emissions at the same time. Although the livestock sector in Latin America and the Caribbean contributes only between 2 and 3% of the total greenhouse gas emissions emitted by the region, its sustainable management is key to addressing the impact of climate change, reducing deforestation, taking care of natural resources and expanding the opportunities of thousands of small producers.
US: Live Cattle Ease According to CME
Live cattle eased, while feeder cattle climbed for a third consecutive session as analysts expect the US herd to continue to tighten. "We liquidated a lot of cows because of no grass. We also put a lot of heifers in the feedlots," said Brugler. "The really tight supplies in cattle are probably through the last half of 2023, into 2024." CME benchmark February live cattle eased 0.250 cent to 155.425 cents per pound. The spot December contract lost 0.025 cent to 153.050 cents per pound. CME January feeder cattle added 0.600 cents to 181.075 cents per pound. Cash cattle traded steady in the northern US plains at USD 158 per cwt., but was steady-to-firmer in parts of the southern plains at USD155 per cwt., the US Department of Agriculture (USDA) said. Boxed beef prices fell on Thursday, with choice cuts slipping USD 1.31 cents to USD 253.57 per cwt, while select cuts fell 1 cent to USD 255.00 per cwt, the USDA said.
Brazil: Average Prices of Live Cattle Retreated
Average prices for live cattle dropped throughout November in most markets monitored by Cepea, pressured mainly by the greater supply of animals for slaughter. In view of this, in November (until the 29th), the CEPEA/B3 Livestock Indicator (São Paulo market) had an average of USD 54.20 (R$ 283.27), down 4.54% compared to October and a significant 10.4% compared to November of last year, in real terms (the values were deflated by the IGP-DI). According to data from the Cepea newsletter, it is also the lowest real average recorded by Cepea since October 2019, when it was USD 54.21 (R$ 254.29). This draws the attention of sector agents consulted by Cepea because it shows that the current values returned to the levels observed precisely in the period in which the arroba prices began an intense upward movement, having as impulse, at that moment, the increase of Chinese purchases and the decrease in the volume of animals for slaughter in Brazil.
Argentina: Loses USD 260,000 Million/ Year in Calves Due to Health Problems
On average of Argentine livestock, 76 cows (out of 100) become pregnant annually, of which 72 calves are born, but 62 are weaned, that is, 10 animals are lost between birth and weaning. Dr. Juan Carlos Aba also said that within the 24 non-pregnant cows (out of 100), in 10 cases it is due to issues related to health; the other 14 are due to lack of food or management problems. Aba continued the diagnosis by saying that there is an average of 4 calves lost during pregnancy, 3 of those losses being " due to health". In the case of births (72) there are 10 that do not reach weaning: of them, in 9 cases " it is for health ". These data were projected to the entire national herd, to warn that if the total number of cows is 22 million " we are losing 4.4 million calves ." Aba indicated that around 4 million more bovines is the estimated number that the country needs to achieve "an efficient production that supplies the internal and external markets, without having price distortions ."
Paraguay: Local Steer Price Recovers Competitiveness
In the last month, the price of the Paraguayan steer increased 50 cents and is progressively approaching the best values in the region. This week saw a rise of 10 cents, hence the current value stands at USD 3.45. At the Mercosur level, the consultant indicates that Argentina, Brazil and Uruguay had increases of different intensity that placed them four cents away between the highest and the lowest price. In the case of Argentina, the farm price was USD 3.58, an interweek increase of two cents and the first increase in dollars since the beginning of September. On the other hand, Valor Carne mentions that the 13 cents of the weight that on average rose the offers of the refrigerators by the category exceeded the weekly devaluation. The price of Brazilian farms registered the second highest rise of the week (eight cents), which helped reach USD 3.60. In the market there was an increase in reais that was barely undermined by a minimal revaluation of one cent. Finally, in the last week Uruguay had an increase of seven cents to close at USD 3.62, and accumulated 29 in four weeks. Shippers consider the market to be in a firm state.
Hungary: The Number of Animals Slaughtered at Slaughterhouses Decreased in the First Three Quarters
Fewer animals were slaughtered at Hungarian slaughterhouses in the first three quarters of 2022 than a year earlier. The number of slaughtered cattle decreased by 7.4%, that of pigs by 6.9%, and that of poultry by 11.8% compared to January-September last year. In the poultry group, goose and duck slaughter fell significantly, by 34 and 45%, respectively, and turkey slaughter also decreased by 4%t.
Russia: Number of Cattle in the Rostov Region Increased by 0.2%
According to Rostovstat, growth in livestock production has been recorded in the Rostov region. From January to October 2022, the farms of the region produced 303.9 thousand tons of livestock and poultry for slaughter, which is 23.1% more than the same period last year. As of November 1, the number of cattle in the farms amounted to 651.3 thousand heads (+0.2), including 297.2 thousand heads of cows (-0.5%).
Russia: Russian and Belarusian Scientists Plan to Jointly Breed Disease-Resistant Livestock Breeds
Scientists from the Siberian Branch of the Russian Academy of Sciences and the National Academy of Sciences (NAS) of Belarus plan to develop joint projects to achieve food security in the countries. In particular, scientists plan to work together on breeding new breeds of cattle adapted to climatic conditions and resistant to diseases, told reporters on Tuesday during the International Scientific and Practical Forum "Agrarian Science, Agricultural Production in Siberia, Mongolia, CIS countries and BRICS" in Novosibirsk Academician-Secretary of the Department of Agrarian Sciences of the National Academy of Sciences of Belarus Vladimir Azarenka.
Turkey: Imported 18,500 Heifers in the First 10 Months of 2022
Heifer centres, which were implemented in 2016 within the scope of the National Agriculture Project, could not provide the expected contribution to the country's livestock. While a total of 26 heifer centres were established in Turkey, nearly USD 2.68 million (50 million liras) of support was given to heifer centres. However, heifer centres established due to the wrong policies applied in animal husbandry could not have the expected effect in animal husbandry. Although the primary purpose of heifer centres is to prevent imports, it is noteworthy that Turkey continues to import heifers intensively. According to TUIK data, Turkey imported a total of 18,533 heifers in the first 10 months of 2022, including 3720 empty and 14,813 pregnant heifers. A total of USD 37.2 million was paid for heifer imports for the first 10 months of 2022. Imported heifer prices varied between USD 1500 and USD 2100 on average in dollar terms. While empty heifers were imported at an average of USD 1500, pregnant heifers were imported at an average of USD 2100. While the empty heifer imported on TL basis came to USD I.45 thousand (27 thousand liras), the pregnant heifer came to USD 2.09 thousand (39 thousand liras). While the producer, who produces at a loss due to the low prices of raw milk, cuts his female animal, on the other hand, importing heifers from abroad reveals the contradiction in animal husbandry.
South Africa: 183 Open Foot and Mouth Disease Outbreaks Reported in November
According to the latest report update released on November 30, 2022, South Africa currently has 183 open foot and mouth disease outbreaks. The last update was reported on October 31, 2022, and there were no new cases reported to the World Organisation for Animal Health (WOAH) in the past month. The World Organisation for Animal Health (WOAH) has resolved and closed eight premises.
Fresh Beef
US: No Cheap Steak in Sight, the Americans Will Eat It All
The price of red meat is tipped to increase next year partly because of massive demand from the United States, a Rabobank report says. Agricultural analyst at Rabobank Genevieve Steven said US beef production was dipping and the country needed to import meat to fill its fridges. Although this was good news for New Zealand beef farmers who would have a ready export market next year, Kiwi shoppers could expect high meat prices to continue or increase. Countdown was selling 0.5kg of beef mince for USD8.90 on Tuesday. Premium minces cost USD 13 for the same weight. Rump steak cost USD 27.50/kg and First Lite Wagyu mince cost USD11.90 for 0.4kg. Stats NZ data showed that in 2018 1kg of porterhouse steak cost about USD 29, compared with about USD 34 this year. Beef mince had increased from USD 14 to about USD 18 in that time. Steven said New Zealand exported 98% of its beef and the US was its second-largest market after China. The US had a potential shortage of up to 500,000MT of beef in its market, she said
Brazil: Leads Mercosur in Meat Exports
In the first ten months of 2022, Brazil led the beef exporter ranking in Mercosur, followed by Argentina, Uruguay and Paraguay. According to the Rosario Ganadero Market (Rosgan), the four countries together accumulated shipments of 2.83 million MT, which generated revenues of USD17,066 million and marked an interannual increase of 15.4% and 36%, respectively. Brazil's exports during the analysed period are located at almost 1.7 million MT, 25% more than in 2021. Although the 189,000 MT shipped in October began to drop after the highs reached in August and September, the entity remarked that the year will close with new records both in sales volume and invoicing. During 2022, they generated foreign currency for USD 10,274 million, 48% more than last year.
Brazil: World Cup Makes Arabs Increase Meat Stock
The presence of around one million foreign fans in the Gulf countries to watch the World Cup in Qatar gave an important boost to Brazilian meat sales. In the case of beef protein, Qatar recorded the second highest growth in sales, just behind Kuwait. Exports of beef derivatives to the country increased 91.27%, to USD 31.45 million. In the months of July, August and September, shipments were intensified to reinforce stocks. The monthly average was 528.90MT, compared to the 478.22MT shipped in the first six months of the year.
Brazil: Migration From Beef to Pork Favored Consumers in October
Research carried out by the Institute of Agricultural Economics in several establishments in São Paulo showed that the amounts paid for the purchase of a kg of beef and pork had dropped among consumers. As pork had a smaller drop in relation to beef, there was an improvement in the amount of pork purchased by the population with the expenditure necessary to acquire a kg of beef. The ratio shows that, in October, with the amount spent on the purchase of one kg of beef, the consumer was able to purchase 1.844 kg of pork, increasing the amount by 4.6% compared to the same period last year, when acquired 1.703 kg. In the first 10 months of 2022, the ratio reached 1.825kg, equivalent to an annual increase of 12.3%, while in the last twelve months, November 2021 to October 2022, the average ratio reached 1.804kg, meaning growth of 12.5% compared to the immediately preceding period.
Brazil: Competitiveness of Pork Compared to Chicken and Beef Decreases
While the average prices of pork increased from October to November, those of beef protein showed a small increase, and those of chicken, a decrease. In view of this, the competitiveness of pork fell in relation to the two competitors. It should be noted that, with the average price of pork protein moving away from that of chicken and approaching the price of beef, there is a loss of competitiveness for pork. Agents consulted by Cepea indicate increased demand for pork by wholesalers, a scenario that raised protein prices in November. As for beef, prices have been around USD 3.64/kg (R$19) since the end of October. According to researchers from Cepea, some of the plaintiffs have already started building stocks for the end of the year festivities, a scenario that sustains the values of this meat. In the case of chicken meat, the growth in supply, especially of fillet and breast, resulted in a drop in prices in November, many agents were forced to adopt the strategy of negatively readjusting prices, aiming to increase liquidity and avoid the increase in inventories.
Brazil: MAPA Expects Brazilian Meat Production to Grow 23% In a Decade
The Brazilian Ministry of Agriculture, Livestock and Supply (MAPA) released the report "Brazil Agribusiness Projections 2021/22 to 2031/32", where it made predictions about various sectors, including meat. As reported by Faxcarne, among the meats, those that project the highest annual growth rates of production in the period are chicken and pork with 2.4% and beef with 1.3% per year. Total meat production in 2021/22 is estimated at 28.5 million MT and the projection for the end of the next decade is to produce 35 million MT of the three main meats. This variation between the initial year of the projection and the end results in an increase in production of 23%. The increase in chicken meat production in the period is projected at 25.6%, pork at 29.1% and beef at 14.9%, to 19.1 million, 6.2 million and 9 .7 million MT, respectively. Regarding consumption, chicken will increase in the same proportion as production (2.4%), pork slightly less (2.3%) and beef 0.6% per year.
Brazil: Meat Export Performance in November 2022
For a long time, the best result was beef, whose shipments increased by more than 83% compared to November 2021, reaching close to 250 thousand MT. Pork meat recovered from the weak performance of a year ago and, with an increase of 20.88%, shipped almost 85 thousand tons. In relative values, the weakest performance was that of chicken meat: with an increase of 13.34%, the volume shipped amounted to close to 347 thousand tons.
New Zealand: Local Meat Slaughter Saleyard Prices for W47
Good rains and grazing conditions in New Zealand caused an increase in volumes and animal conditions which put more pressure on local sale yard prices in W47. Exporters expect export prices to stay firm until mid-December 2022. The average local slaughter price trends in W47 for Steer NI P2 (300kg): USD 4.11/kg (NZD 6.45/kg), a 2.2% drop from W46 when prices stood at USD 4.21/kg (NZD 6.60/kg). Abbreviation:
- Steer = a male cattle beast castrated when young;
- NI = North Island of New Zealand;
- P = fatness, a light to medium fat cover, 3–10 mm deep;
- 2 = muscling class 2, good muscle development;
- 300kg = steer carcass weight.
Spain: Meat Exports in October
Meat exports from Spain have recovered compared to the month of September, they are still 4.3% lower than in the same month of the previous year, with a total of 147,225MT. By subsector, only pork meat and preparations have increased their exports in October, by 0.2%. The rest of meat products exported less than the same month of the previous year: meat and beef preparations, -33% ; sheep and goats, -7.6% ; those of birds, -43% ; and other meats and preparations -19%.
New Zealand: Red Meat Sector Exports to Italy Increased 244% In October
New Zealand’s red meat sector exports to Italy increased by 244 per cent in October, compared with 2021, with demand for sheep meat and beef hides soaring, according to an analysis by the Meat Industry Association (MIA). Overall, red meat exports for the month were worth USD 737 million, a 6% increase on October last year. China was again the largest market, at USD 290m, followed by the US (USD 134m), Japan (USD 32m) and then Italy (USD 26m). Exports to Canada were also up 82% on last October by value, to USD 22m. The volume of beef exports was largely unchanged from last October, at 27,505MT, but value increased by 19% to USD 273m, mainly driven by China. There were increases in the value of the two main fifth quarter (co-product) categories, with hides and skins up 37% to USD 36m and casings and tripe up 38% to USD 30m. Overall, fifth quarter exports were worth USD 175m, a 12 % increase on last October.
Argentina: Uzbekistan Will Import Argentine Bovine Genetics
The National Agri Food Health and Quality Service (Senasa) of Argentina and the State Veterinary and Livestock Development Committee of Uzbekistan have already signed the health certificates to accompany the export of bovine genetics to the Asian country. After two and a half years of negotiations, Argentina added a new market for the export of nationally produced bovine semen and embryos.
Argentina: Meat World Cup for Argentine Exports as China Leads
Argentina, without a doubt, is a big player in the meat market at an international level, not so much for volume but for the quality of its cuts. Due to this, it manages to get European countries to pay up to USD10,200/ton for premium cuts, which are part of the so-called Hilton Quota. This is a quota of 29,500MT that entered the European Union with preferential tariffs, in a period from July 1 to June 30, 2023. Certainly, these quality cuts are a Mecca for beef exporters, due to the prices paid and the market virtually assured, despite the fact that just a year ago, up to USD 14,000/ton was paid for these cuts. According to data from the Institute for the Promotion of Argentine Beef (IPCVA), in September (last data collected), 46,000MT of beef product weight were shipped, and more than 8,000MT of bovine bones, totaling a value of USD 299.9 million. In the first nine months of the year, the ranking of destination countries for shipments of Argentine cuts is led by China, which absorbed 77% of the total, equivalent to 364,132MT of beef cuts, which represents 11.6% more. than in the same period of the previous year.
Argentina: The Price of the Mercosur Steer Increased 6 Cents in W48
The average value of the steer in Mercosur left behind the narrow band in which he had moved in the previous five weeks.The Mercosur Steer Index rose 6 cents to USD 3.37/kg carcass, mainly driven by the improvement in Brazilian prices.The average value of boi gordo in the main exporting states of Brazil rose 11 cents in the week to USD 3.25/kg carcass, driven by a rise in prices in reais that was boosted by the appreciation of 1.5% of the exchange rate. In Paraguay, prices also increased, with males for slaughter rising 10 cents to USD 3.30. In Argentina, the rise in the prices of the export steer in Argentine pesos was not enough to offset the devaluation of the exchange rate, so in dollars it fell 2 cents to USD 3.58. In Uruguay, the upward trend of the previous four weeks was left behind and prices remained stable, with the special steer at USD 3.60/kg carcass.
Argentina: The Sanitary Certificate to Export Bovine Meat From Argentina Was Agreed With Mexico
The health services of Argentina and Mexico agreed on the health certificate that will accompany beef exports to the North American country. In what constitutes a new step to start Argentine beef exports to Mexico, the National Agri Food Health and Quality Service (Senasa) sent its counterpart from the Aztec country, the National Agri Food Health, Safety and Quality Service (Senasica) , the health certificate with the requirements that both parties were agreeing on.
Mexico: More Meat Production and Greater Value
Until October, the national beef production totaled 1.7 million MT, 2.3% more than the same period last year. The Agricultural Market Consulting Group (GCMA) indicated that the value of this processing amounted to a total of USD 4,779 million, almost 26% more than in 2021. The consultancy directed by Juan Carlos Anaya specified that hand in hand with the good rhythm in production, imports fell 4.9% in tonnage and 7.4% in value, figures that meant the acquisition of 137,000 MT for USD 941 million. Related to beef exports, these closed the period at 288,000MT. valued at USD 1,945 million, in both cases there were increases of 9.1% and 3.3% respectively. The GCMA projected in a report that by the end of 2022, Mexican production will reach 2.17MT. , showing an increase of 1.9% over what was registered in the 12 months of 2021. In the case of international trade, an interannual rise of 10% is expected in the shipments section, that is, the year would close with exports of 350,200MT.; while in purchases there would be a fall of the same percentage, to import a total of 156,900MT.
Uruguay: Beef Demand Slowed Down During W48 Due to Zero-Covid Policy
The zero COVID-19 policy had serious consequences for the sale of Uruguayan meat through the usual channels, which in many cases are closed due to lockdowns. This generated uncertainty and affected the prices that importers who try to minimise risks are willing to pay. During W48, prices stood at:
- Bone-in cow quarters was USD 3.6K/ton CFR PRC
- Cow in 6 cuts was USD 4.2-4.5K/ton CFR
- Shin and shank was USD 5.8-6K/ton CFR
- Robbed forequarter was USD 4K/ton
- Knuckle and flat was between USD 4.8-5K/ton
- Eye round was USD 5.8K/ton.
Paraguay: Beef Shipments in 2022 Point to a New Record
According to the records of the National Animal Health and Quality Service (Senacsa), 2021 closed with 326,698 MT of beef exported, which generated USD 1,598.9 million, which remains the historical record for red protein shipments. At this rate, 2022 would exceed that figure and set a new record, since just one month before the end of this year, the country already exported 305,092 MT of beef for USD 1,578.4 million.
Chile: The Drop in the Production of Red Meat Continues
From January to September, according to the Chilean Odepa, 130,854MT of beef have been produced in the Andean country, which is 10.4% less than in 2021. In pork, the reduction was 1.8 % less, until adding 387,363MT. Against this, that of poultry rose 2.1% to reach 507,065MT and in the case of turkey meat it grew to 50,931MT. Regarding foreign trade, from January to October, imports were close to 200,000MT and have fallen by 18.3% compared to the data for 2021.
According to preliminary data of the State Statistics Service of Ukraine, as of November 1, there are 2,584,300 head of cattle in Ukraine, 14% less than on the corresponding date in 2021. Including 927.7 thousand cattle (-6.9%) in industrial farms, and 1656.6 thousand (-17.5%) in households. The total number of cows decreased to 1.4 million, which is 13.9% less than in 2021. According to the calculations of the DSSU, the industrial herd of cows decreased by 8.4% and totaled 385.1 thousand heads, and the number of cows in the domestic sector fell by 12.4% and amounted to 1015.8 thousand heads.
Colombia: The Consolidation of the Bovine Meat Cluster for the Department of Antioquia Began
This is a dynamic economic sector that is developed in a total of 68,500 cattle farms in the different subregions of the department. At least four subregions stand out with a clear trend and potential for bovine meat production, such as: Urabá, Bajo Cauca, Northeast and Magdalena Medio. For this reason the bovine meat sector, in order to become more dynamic, has promoted this initiative to increase competitiveness, commercial dynamics and public and private articulation. This is how the Government of Antioquia, through the Ministry of Agriculture and Rural Development, has been leading the project " Development of the Bovine Meat Cluster in the department of Antioquia ", with the Chambers of Commerce of Magdalena Medio and Northeast Antioquia, Urabá and Medellín for Antioquia, in order to contribute to closing gaps in the sector and to embrace the national competitiveness and productivity policy, in which clusters are defined as a strategy for the transformation of Colombian industry.
Kazakhstan: About 950 Thousand Tons of Meat Were Produced Following the Results of 10 Months
According to the results of 10 months of 2022, 948.5 thousand MT of meat were produced by Kazakhstani livestock breeders, the volumes increased by an average of 0.5% compared to the same period a year earlier, the press service of the Ministry of Agriculture reported. Since the beginning of the year, 400.1 thousand MT of beef, 113.7 thousand MT of lamb, and about 61.2 thousand MT of pork have been produced.
With the price of Korean beef meridians continuing to decline day after day, the National Korean Beef Association (Chairman Kim Sam-joo) issued a statement on the 29th and urged the government and the National Assembly to come up with countermeasures. The Korea Beef Association points out that the government instigated the fall in price by applying quota tariffs to beef in the name of price stabilisation in July this year and importing beef without tariffs. The Korean Beef Association said, “Considering the inflation rate, the current situation is more serious than in 2013, when the price of cattle fluctuated.” 100,000MT of beef,” he claimed. Considering that last year's production of Korean beef was 264,000MT, 100,000MT is a huge quantity, but the rapidly imported beef has not yet been digested, and it continues to induce a decrease in Korean beef prices.
South Korea: Beef Association Promotes the Beef Consumption Campaign to Stabilize Cattle Prices
The National Korean Beef Association ( Chairman Kim Sam-joo ) announced that it is promoting a Korean beef consumption campaign to stabilise the wholesale price of Korean beef. The 'Consume 1 kg more Hanwoo from me ' campaign is promoted with the intention of helping Hanwoo farmers take the lead in consuming Hanwoo meat and contributing to the stabilisation of Hanwoo price. The campaign period is from the 1st of this year to January 31 of the next year , and on February 3 , 2023 , prizes such as Korean beef gift set and Lotteria Korean beef burger set exchange coupon will be presented through a lottery among campaign participants.
Next year, Hanwoo beef wholesale prices are expected to show a gradual decline. Pork wholesale prices are also expected to fall short of this year. According to the “December Livestock Observation” recently announced by the Korea Rural Economic Institute, as of September this year, the number of Korean cattle raised was 3,544,000 and fertile cows were 1,683,000. This is an increase of 2.7% and 3.6%, respectively, compared to the same period last year.
South Korea: Will the South Korean Beef Export Market Expand?
With the urgent task of securing demand through exports in the aftermath of oversupply of Korean beef, the process of export negotiations with new customers will be restored by recovering the status of a foot-and-mouth disease-free country next year. It was predicted that it would accelerate. This discussion came out on November 30th at a meeting on Korean beef and pork exports held by the Korea Meat Trade Export Association with member companies in the association's conference room in Anyang, Gyeonggi Province. Currently, more than 90% of Hanwoo meat is exported to Hong Kong, and from this year exports are also being made to Mongolia. By November 26, exports were 39 MT, an increase of 16.9% compared to the same period last year, but a significant decrease compared to 2018 (65.2MT), when exports peaked. Compared to 7,879MT of Japanese Wagyu beef exported to Cambodia, the United States, Hong Kong, and Taiwan last year, exports of Hanwoo beef have yet to get out of the market development stage.
Tanzania: Wholesale Prices of Beef Increased Since October 2022 Due to a Pasture Shortage
Since October, the wholesale beef prices in Dar es Salaam, Tanzania, have increased to USD 3.22-3.43/kg compared to the previous prices of around USD 2.57-2.79/kg. According to the Tanzania Meat Board, the price increase was caused by a meat scarcity as a result of a shortage of pastures. Unlike in 2021, the price in 2022 has risen earlier, and given that the holiday season is approaching, there is a chance that the price will rise even further. In 2021, the highest price was quoted at USD 3.09-3.21/kg.
Indonesia: The Ministry of Agriculture Projects Beef Deficit to Decrease 2022
The Ministry of Agriculture projects that the beef deficit in 2022 will decrease. A decrease in the deficit can be achieved if production increases according to plan until the end of the year, followed by a decrease in consumption. Director of Livestock Breeding and Production, Ministry of Agriculture, Agung Suganda, said beef/buffalo production this year is projected to increase to 436.7 thousand MT from last year's 415 thousand MT. Meanwhile, the total demand for 2022 reached 695.4 thousand MT or experienced a slight decrease from 2021 of 696.9 thousand MT. The decrease in demand is because the Ministry of Agriculture projects that there will be a reduction in the consumption rate per capita of beef from 2.56 kg in 2021 to 2.53 kg in 2022. From the balance sheet, the deficit is estimated to reach 258.7 thousand MT, down from last year which reached 281. 8 thousand MT. "If we look at it, the percentage of our imports is 37% of national needs, down from last year's 40%.”
Hundreds of thousands of cows in Indonesia are infected with an outbreak of Foot and Mouth Disease (FMD). However, it is suspected that the disease that is affecting these cloven-hoofed livestock will put pressure on the price of beef in the country. The National Food Agency's Price Panel noted that the national average price for pure beef on Thursday (1/12/2022) fell by USD 0.0045 (IDR 70) to USD 8.59/kg (IDR 133,920). However, in DKI, for the same type of meat, the Jakarta Food Information reported an increase of USD 0.0068 (IDR 106) to USD 9.09/kg (IDR 141,595). The highest price was reported at Pluit Market at USD 10.27/kg (IDR 160,000). "For beef, in November there was deflation," said BPS Deputy for Distribution and Services Statistics Setianto during a press statement, Thursday (1/12/2022). This is in line with the statement of the Secretary General of the Association of Indonesian Meat Importers (Aspidi) Suhandri. According to him, to prevent further losses, domestic breeders will prefer to release their cattle to the market at a low price.
Indonesia: The Dollar Is Going Crazy Again to IDR 15,730, the Effect Will Reach Eid 2023
The price of beef is predicted to continue to increase until Eid 2023. As a domino effect, the current weakening of the rupiah against the United States (US) dollar. On Wednesday (30/11/2022), the dollar was observed to close at IDR 15,730. In fact, at the beginning of September 2022 it was still at IDR 14,880 per US dollar, then it increased to USD 1.01 (IDR 15,300) per US dollar on October 3, 2022. And it continues to fluctuate and tends to strengthen to its current position. Secretary General of the Indonesian Meat Importers Association (Aspidi) Suhandri said, the strengthening of the US dollar exchange rate greatly affected the price of beef, let alone imported beef. This is because the purchase price of cattle automatically becomes more expensive with an increase in the US dollar exchange rate. The reason is, until now, Indonesia not only imports beef, but also feeder cattle. These imported feeder cattle then become a source of domestic beef supply.
Cuba: The Market for Meat Exports to Cuba Is Now Open
A new path for the export market is opening up in Colombia with a destination to Cuba. The health authorities of both countries have begun to meet to audit establishments and enable the system for exporting beef, pork, poultry, dairy products, and meat products to the island. The National Institute for Food and Drug Surveillance (Invima) will be carrying out inspections of companies until December 17, as confirmed by the entity. On September 20, Invima announced that three Colombian companies were authorised to export poultry meat to the Caribbean country. According to the health authority, the National Animal Health Center of Cuba (Cenasa) was in charge of this authorization.
Frozen Beef
In September 2022, Japanese importers paid the second highest price for a kilo of frozen beef since at least January 2021, at USD 5.69/kg (772 JPY). This represents a 0.2% increase MoM and a 38% increase YoY. This price increase is due to a weakening yen, and occurred despite falling export prices from major producing countries. (Continue Reading)
Ukraine: The Export of Frozen Cattle Meat Has Almost Down 50% in 10 Months
In January-October 2022, Ukraine exported 11.2 thousand MT of frozen cattle meat, 49% less than in the same period of 2021. This is evidenced by the data of the State Customs Service. The export of these products brought Ukraine USD 53.1 million, 40.4% less than in January-October 2021. The main buyers of Ukrainian frozen cattle meat during 10 months of 2022 are China (72%), Azerbaijan (8.4%) and Georgia (5.8%).