Rabobank: Global beef production will decrease by 1% in 2023%
As Rabobank has said the global beef industry continues to be a 'two-part story', with ongoing strong consumer demand in the US matched by reduced cattle and beef supplies, as well as high inventory levels and weak demand in Asia.
Rabobank published its assessment in its latest Global Beef Quarterly report, which covers the fourth quarter of this year.
Meat markets in the Southern Hemisphere continue to see an increase in production volumes, it added, with increases in Brazil and Asia, however it was not enough to offset the declines in Europe and the US.
Beef production in the markets that Rabobank tracks is expected to decline by 1% year-on-year throughout 2023, with the group adding that it expects 2024 to develop in a "similar way."
Rabobank also noted the persistently high level of cattle prices in North America, contrasting with softer prices in Southern Hemisphere countries. Australian cattle prices have significantly declined, showing a 28% drop since June. Meanwhile, New Zealand and Brazil also experienced decreases, albeit to a lesser extent. In the United States, cattle prices remained stable, while Canadian prices witnessed a 3% increase from June to October.
According to Rabobank, the ongoing conflict in the Middle East is not expected to significantly affect beef trade. The combined import volumes of Israel and the Palestinian territories represent only about 1% of global beef imports. Even if the conflict spreads to the wider Middle East and North Africa region, the bank assumes that the impact on global beef trade will remain relatively minimal.