A Look at Global Beef and Cattle Trade

Tight global beef supplies are seeing record high beef prices and these are affecting the global beef and cattle trade.

Despite Saudi Arabia banning beef imports from the US after the case of BSE detected in April, US beef exports to the rest of the Middle East have remained strong.

Three Australian companies have also been granted approval to export live cattle to the Middle East. However, access to this market is not without its difficulties.

Last week, a consignment of Australian cattle placed under a freeze more than eight weeks ago by the Egyptian Government, due to the presence of hormone growth promotant implants, were cleared for processing.

The EU has seen record beef prices throughout most of 2012. Rabobank's research suggests supply of cattle will remain tight both in the EU and globally until at least 2013 and that this low production will lead to a continuation of elevated prices.

EU beef export demand surged since the end of 2010 after low global beef availability and the opening of the Turkish market for EU beef. The unexpected strong price upswing resulted in record beef prices, above €4.0 per kg cwe since May 2012.

Together with an international supply capacity that is expected to be further pressured, EU beef supply will remain very tight into at least 2014.

For Brazil, beef exports are expected to grow 10 per cent in October, compared to the same period last year.

An increase in sales to Russia and Iran, as well as the opening of the by-product market to the EU are among the reasons for the predicted increase.

Live cattle exports are also up, with Venezuela proving to be a strong market.

Canada is continuing to strengthen its export markets for live cattle, this week announcing the opening of the Libyan market.