Beef prices remain high

Increased demand for beef and limited supply are the main factors that will keep prices high.

Beef is in demand in most parts of the world as the reopening of the catering sector in many countries supports higher rates of beef consumption. “Figures for China show food service sales were higher in March than in January 2020, and U.S. sales in April were slightly lower than in January 2020. The ongoing reopening of the catering sector should support continued demand for beef. On the other hand, low labor availability is starting to limit operations at some plants, especially in the US,” said Angus Gidley-Baird, Senior Analyst at Rabobank - Animal Protein.

Strong demand and limited supply are driving cattle prices to record levels. The Rabobank Seven-Nation Cattle Price Index shows finished cattle prices in all regions except Uruguay and New Zealand rose in March and April. Meanwhile, a beef export ban imposed by the Argentine government could increase demand from China , as the South American country holds 22% of China's market.

Ireland is currently trying to reopen the Chinese beef market as exports were suspended after an atypical case of TGE was reported last May on an Irish farm. In addition, according to Beef To China, imports from some suppliers in Europe such as Belarus, Russia , Serbia, Hungary, Lithuania and Ukraine have increased by almost 400% this year to 2,993 tons.