The latest global report from Rabobank has identified Ireland as one of the European Union countries experiencing a decrease in beef production during the first five months of 2023. The report indicates that lower supply is the main factor shaping the European market, and it highlights a drop in the average beef carcass price in the EU compared to the previous year.
Rabobank’s Global Beef Quarterly report reveals a 5% year-on-year decline in beef production across Europe in the first five months of 2023. The report also points out the common trend of “softer consumer demand and fully supply chains” in global markets, except for the United States.
Italy saw the largest decline in beef production, falling by 25% year on year between January and May 2023. Spain and Ireland also experienced decreases of 7% and 5% respectively, while France and Poland saw a 3% drop in production during the same period. In contrast, the Netherlands witnessed a 3% increase in production, which Rabobank attributes to declining profitability, uncertainty surrounding environmental permits, and the desire of dairy farmers to maintain their cattle numbers.
Furthermore, the report reveals a 15% year-on-year decrease in EU and UK beef exports during the first five months of 2023. However, imports to the EU and UK increased by 5% due to lower domestic supply.
Globally, cattle prices are divided into two distinct groups: North America and Europe, and the rest of the world. The US has witnessed an increase in cattle prices due to lower supply and strong consumer demand. Conversely, Australian cattle prices have plummeted by over 30%. In New Zealand, a downward revision of farmgate milk prices for the 2023 season is likely to result in increased dairy cow culling.
Brazil, a major beef exporter to China, has seen a recovery in shipments after a temporary suspension. However, weak domestic consumption and a drop in chicken prices have limited the recovery of live cattle prices. In China, both domestically produced and imported beef prices were down 23% year on year in July 2023.
Rabobank also highlights the growing importance of nature and biodiversity in discussions surrounding beef sustainability. The report notes that fewer companies in the beef supply chain have made voluntary commitments regarding nature and biodiversity compared to those focusing on emissions reduction.
Sources:
– Rabobank
