Cattle prices will remain high in first half of year
Experts at the leading, global agri-bank say the big question for many beef importers will be where to source sufficient supplies. Global beef production will increase only slightly, and is expected to decline sharply in key markets, like the US, where herd rebuilding is the first priority; meanwhile, strong Asian demand is predicted.
“China’s importance and influence on the global beef market is set to continue to increase in 2014,” said Rabobank analyst, Albert Vernooij. “China’s imports of both frozen and chilled beef are expected to grow further, driven by the shortage of beef in the domestic market, reflected in record-high retail prices. We believe that the value of the Chinese markets will grow in excess of 10% annually over the next three years.” Demand will also be boosted by recently announced trade deals, including reopening of closed or impeded markets for beef imports.
