News

Global beef production demonstrates positive dynamics

World prices for beef remain predominantly high. The US and EU are restoring production, while Brazil is increasing exports. China remains the main beef importer.

Worldwide cattle price index  showed a recovery from May to July  2020. Most of the major exporting countries have increased their value. At the same time, in the US, cattle prices fell.
Year-to-date production is still 2% lower after a significant decline in May.

Over the past several months, Chinese demand has continued to dominate the global beef markets. This led to an increase in Brazilian beef exports in the third quarter. Exports to China are up 158% over last year. China now accounts for 41% of the total beef export market.

“China's beef consumption has shown some resilience amid the sluggish economy caused by COVID-19,” the report said.

The volume of weekly slaughter in the United States has recovered to 98% in relation to the level before the COVID-19 pandemic. Sale prices have returned to normal levels. US beef production is expected to grow 1-1.5% year over year.

As for the EU and the UK, beef production decreased by 5% in January and May. During the COVID-19 outbreak, it fell across Europe. The largest declines occurred in Italy (-16%), followed by Germany (-5%), Ireland (-5%), Spain (-4%) and France (-3%). To a lesser extent, beef production was affected in the Netherlands (-2%), Great Britain (-1%) and Poland (-1%).

In Canada, production rebounded sharply after a sudden cut in April and May.

Rabobank reported a decline of just 6.7%, a significant improvement over previous months of recession.

Source: ukragroconsult