Rabobank tips slowing beef demand
AS parts of the world cautiously ease out of lockdown and reassess COVID-19’s impact on the beef sector, Rabobank’s latest global Beef Quarterly has revised down its global beef production outlook and forecasts slowing beef demand in a declining economy.
However, the Quarter 2 report said the Australian cattle market was more favourably placed – limited supply and improved seasonal conditions continuing to dominate the local sector and maintain strong cattle prices.
– Beef processing disruptions
Beef supply chains and distribution channels emerged as the major casualties of COVID-19 during March and April, particularly in the United States, where, Mr Gidley-Baird said cattle slaughter dived almost 50 per cent below 2019 levels following beef processing plant closures and slowdowns.
“This limited capacity placed enormous pressure on beef supplies and fed cattle numbers, with prices adjusting accordingly,” Mr Gidley-Baird said.
“Beef prices jumped to record levels – the comprehensive cutout reached US $470 carcase weight in early May – and fed cattle prices dropped.”
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