July 21, 2010

 

Global beef output on the decline

All major beef producing countries saw reductions in production levels in 2009, which could prove to be greater this year, with the exception of Argentina, reported Eblex, the organisation for beef and lamb levy payers in England.

 

The fall is attributed to producers reducing their breeding herds, resulting in high cow slaughterings while prime cattle slaughterings are in decline.  This applies especially to the US and the EU, said Eblex in its latest bi-annual International Meat Market Review (IMMR).

 

Even in Argentina, the increased flow of beef onto the market was actually the result of herd 'liquidation' for political reasons and the net result will be severe shortages of cattle available for slaughter in 2010.

 

In Brazil there are signs that the downturn in beef production is coming to an end and a small recovery forecast in 2010.

 

The decline in Australian beef production is the result of poorer export demand and difficult seasonal conditions in both 2009 and early 2010.

 

The global economic downturn is continuing to result in weaker demand for beef, especially in developed economies, with the food service sector especially affected," said Joanne Knowles, red meat market intelligence manager for AHDB.

 

"Consumers are trading down to cheaper cuts, so weakening the hindquarter market in particular, and also cheaper sources of protein," she said, adding that this fall in demand has reduced cattle prices but intensive producers have benefited from lower global cereal prices.

 

World trade in beef has also fallen with demand from Russia and Mexico showing a decline.

 

"Looking ahead, we expect overall global demand for beef and veal to show a modest upturn in 2010, mainly down to growth on Asian markets," she said.