According to the latest analysis by Rabobank, supply chain disruptions associated with the coronavirus epidemic have propped up beef demand in the US market, triggering a spike in prices last year. However, after the pandemic, demand will fall, warns Dustin Akherin, an animal protein analyst.

The fight against viruses will significantly reduce the burden on the processing and distribution sectors, he said. Over the next few years, innovations accelerated by Covid-19 will be realized, as will technological advances throughout the supply chain. At the same time, there will be a reduction in the supply of cattle meat due to the dwindling herd of beef cows.

At the same time, a decrease in demand for beef in the domestic market is expected, since all of the above factors will lead to an increase in prices.

“In the aftermath of the pandemic, Rabobank expects US domestic beef demand to fall from record highs reached during 2020. The sharp jump in retail prices in late spring can be largely attributed to the declining availability of beef and other meat products due to the sharp rise in prices. Supply chain disruptions caused by Covid-19 have also been documented,” says Mr. Akherin.

However, the rise in demand for beef, which takes into account both supply and price, indicates that higher beef prices are not only a result of supply changes, especially with the recovery in meat supply in recent months. “The exact circumstances that fueled the incredible rise in demand for beef during the pandemic also predict potential market vulnerability during the post-pandemic recovery,” he added.

Source: meatinfo