April 6, 2022

Beef export prices increase globally in 2021

Beef export prices have increased globally in 2021 but slowed down in the fourth quarter of last year, though these prices remain high compared to past recorded averages, the UK Agriculture and Horticulture Development Board reported.

Except for Brazil, beef output from key export nations have been stable in the last 10 years. Demand for beef has soared around the world due to a growing global population and increased Asian middle class.

Input costs such as labour and energy have been on the rise for the past few months, made worse by Russia's invasion into Ukraine. Grain prices have also risen because of the conflict.

Stocks of US frozen beef were low in 2021, but have recovered.

According to US Department of Agriculture (USDA) reports, lean boneless beef prices are the major reason to higher prices.  93% lean ground beef wholesale prices have increased 26% compared to the year prior, while prices for other cuts have remained stable.

The reports also show UK visibly lean (VL) boneless beef wholesale prices have increased by over a third compared to the year prior.

VL beef demand and stock shortage is helping underpin global prices, and as a result, global cattle prices too. With the UK importing large volumes of Irish beef, these prices could support British prices alongside the low total British cattle available for slaughter.

-      UK Agriculture and Horticulture Development Board