Beef Prices Remain Steady as Demand Holds
Demand for high quality, sustainable beef with provenance and traceability is a developing consumer trend and positive news for cattlemen the world over.
In Europe, this has been driven by the horse meat scandal, which has developed since mid-January and led to calls for changes in how meat is scrutinised from field to table.
The reaction from UK farmers and the industry has been clear. Supply chains need to be shorter.
Kantar survey results showed a 35 per cent fall in the volumes of fresh and frozen burgers. The Livestock and Meat Commission for Northern Ireland (LMC) has said that while this figure relates to product recall, consumers are buying less processed beef.
Sales of frying and grilling cuts rose 14 per cent year-on-year in the four weeks running up to February 17 and lamb consumption has also shown increases.
This is partly thought to be driven by a 16 per cent drop in retail prices into February. Oversupply due to a poor summer and back end for finishing lambs has meant sales volumes were 44 per cent, according to the LMC.
US analysts are noting similar demand patterns in the face of limited supply post-2012 drought where feedlot numbers are seven per cent lower than last year.
Boxed beef peaked at almost $200/cwt and has stayed over the past weeks near $190/cwt. Len Steiner and Steve Meyer have said that this means consumer preference for beef remains.
According to CME data, steer and heifer slaughter is running at a weekly figure of 449,000. This is despite a delayed start to the ‘grilling’ season for many in the East Coast and Midwest regions.
This figure is down 6.2 per cent on a year ago with supply numbers being supported by dairy cow and bull culling - running 13 per cent higher than a year ago.
Another country benefiting from healthy beef demand is Australia. This week Indonesian cattle import permits more than doubled in number for the second quarter reaching 115,000, up from 56,000.
One ship - the Ocean Swagman – has already left Port Darwin for Indonesia- where lighter cattle are preferred.
In Brazil it is domestic markets that are to be shaken up following a deal signed by The Brazilian Association of Supermarkets (ABRAS) rallying against Amazon rain forest beef.
Representing 2,800 members, the ABRAS pledge is expected to alter the product on sale in the country and decrease deforestation in the Amazon.
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