January 4, 2007

Global beef production to rise in 2007, says FAO

While a strong recovery in Asian beef consumption and imports in 2007 is likely to support grain-fed beef prices, overall world beef price rises would be moderated by increased South American exportable supplies, according to FAO's December 2006 Food Outlook report.

World beef production is forecast to increase nearly 3 percent in 2007, to 67.5 million tonnes, with the increase largely in response to the prospect of higher beef prices, says the report.

Most of the production gains, with the exception of China, are expected in many of the export-oriented countries in North and South America. Beef production may rise in South America with the easing of restrictions related to foot-and-mouth disease. Argentine beef production may get a boost by a partial export ban ease put in place in 2006 to curb domestic inflation.

FAO notes that a lifting of beef import ban from Brazil and North America will boost trade by 9 percent in 2007. A double-digit increase in Asian imports is anticipated, particularly to China, Japan and the South Korea.

There may also be a growth in US imports of low quality cuts as herd rebuilding is expected to constrain domestic output.