Intense Competition on Global Beef Markets

With more than two thirds of European beef meat coming from the dairy herd, analysts at the European Commission forecast that the expansion of the dairy breeding herd is expected to see more animals going for slaughter.

The Commission expects to see production increase over this year and next.

However, over the last year there was a low supply of beef and because of this EU exports fell by 23 per cent.

The Commission expects that the beef export market will stabilise over the next two years, while beef imports from Brazil are reported to have risen between 2012 and 2013 by about 10 per cent.

Globally, the beef market is marked by intense competition – with the US, Australia, Brazil, India, Canada and Mexico all competing for market share together with the EU.

However, most of these major exporting nations are now viewing the EU as a target for beef exports.

One other leading producer, Argentina is experiencing some sever problems at present, with production and distribution being disrupted by heavy rains recently and government intervention in the market limiting export permits.

This intervention, together with high cattle prices has limited Argentina’s export potential – dropping by 22 per cent in January.