The global beef industry continues to be a "two-part story," states Rabobank, with strong consumer demand unfolding in the USA, accompanied by reduced cattle and beef supply, as well as high levels of stocks and weak demand in Asia.

A new assessment

Rabobank made its assessment in the latest Global Beef Quarterly report, covering the fourth quarter of this year.

Meat markets in the Southern Hemisphere continue to see an increase in production volumes, it added, with growth in Brazil and Asia; however, this has not been enough to offset declines in Europe and the USA.

Beef production in markets monitored by Rabobank is expected to decline by 1% year-on-year throughout 2023, the group adding that it expects 2024 to unfold "in a similar manner."

Cattle prices

Rabobank noted a sustained high level of cattle prices in North America, contrasting with lower prices in Southern Hemisphere countries.

Australian cattle prices have significantly decreased, recording a 28% drop since June. Meanwhile, New Zealand and Brazil have also experienced declines, though to a lesser extent.

In the United States, cattle prices remained stable, while Canadian prices saw a 3% increase from June to October.

Middle East conflict

According to Rabobank, the ongoing conflict in the Middle East is not expected to significantly impact beef trade. The combined import volumes from Israel and the Palestinian territories represent only about 1% of global beef imports.

Even if the conflict were to escalate across the broader Middle East and North Africa region, the bank suggests that the impact on global beef trade would remain relatively minimal.

JBS Investments

Earlier this month, JBS, the Brazilian meatpacking giant, revealed plans to reopen its beef unit in Diamantino, Mato Grosso state.

The company also announced a significant investment, with an initial injection of 300 million reais (56.4 million euros), part of a total investment of 800 million reais (150.4 million euros), aimed at transforming the unit into the largest beef factory in Latin America.

Upon completion of the scheduled restoration and expansion works by January 2024, JBS expects to create 1,600 new jobs in the region.