According to Rabobank’s latest third quarter beef report, the global beef market remains strong, with most retail beef prices trending higher than the previous quarter. Angus Gidley-Baird, senior analyst for animal protein at Rabobank, wondered how long this trend would last.

Rabobank said there was evidence that consumers were losing confidence amid a slowing economy and rising inflation.

Gidley-Baird said:

“The global beef market has seen record prices over the past year due to tight supplies and strong demand, but consumer spending habits are changing. We expect trimmings consumption to remain strong and likely to increase in the second half of 2022 as consumers are expected to switch to lower quality beef cuts and cheaper proteins,”.

The main importing countries for trimmings are the United States, China, Japan and South Korea.

China has increased its imports by 33%. It now receives her 52% of all Brazilian exports, followed by the United States and Egypt as her second and third largest export destinations.

Japanese foodservice sales have taken a hit since COVID-19 restrictions. The government eased some measures in June and opened up to foreign tourists again. Rabobank said this could boost the recovery of its hospitality channel.

Rabobank reported a favorable livestock market. Growth is expected in key producing and exporting countries in the third and fourth quarters of 2022, as increased production in the United States and Brazil dominates the market.

Mexico’s beef slaughter is expected to increase by 2% this year, but the US drought is impacting exports. Feed beef and veal exports to the US fell 43% year-on-year in the first half. In Europe, production will decline slightly in 2022 as declines in France and Germany outweigh positive production in the UK, Italy, Spain and Ireland.

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Source: Rabobank