Uncertainty on horizon for beef industry in 2023 - RaboResearch
China, the US, Australia and Brazil all countries to watchb
27 February 2023
1 minute read
By: According to a new report from Rabobank, 2022 was an incredible year for the global beef industry. Many regions saw record retail and farm gate prices, thanks in part to a combination of strong demand and limited supply. Brazil, for example, hit record export volumes due to growing Chinese demand. Consumer sentiment softened at the end of the year, leading to weaker prices in early 2023 though, said the report.
Rabobank's forecast for total beef production in 2023 is steady with projected growth in Australian (+5%) and Brazilian (+2%) production, which is almost enough to offset production declines in New Zealand, the US and the EU. Through 2023, global supply is expected to decline, due, in part, to waning production in the US.
China is the country to watch in 2023. As the country emerges from Covid lockdowns, demand for beef is expected to rebound, which should help boost beef prices.
The report also pointed to the contracting US herd as a factor to watch in 2023. As inventory declines, Rabobank expects the global marker to tighten.
Increased beef production in Brazil is another factor to consider when looking ahead, experts said. China is Brazil's biggest buyer and is expected to remain so in the long-term.
