October 7, 2014

Strong demand and tightening beef supplies will continue into 2015 according to Rabobank’s third quarter 2014 beef report.  The report states that the outlook for the global beef industry is largely a positive one with producers in the U.S, Brazil, and New Zealand realizing record prices, and the negative effects of Russia’s import ban expected to be minimal given the existing reduction of trade flows with Russia prior to the ban.  Brazil is the one market that has seen notable positive benefits resulting from Russia’s ban through increased beef exports.  The U.S. cattle market is trading at record high prices however even at these high prices, both domestic and export demand are showing no sign of retreating.  In Australia record slaughter rates are driving record exports as demand from importers is supporting high prices although demand from China is expected to be lower than record 2013 levels going forward.  New Zealand’s and Canada’s cattle industries are both experiencing high returns with New Zealand seeing high demand from the U.S., and in Argentina production is forecast to increase however exports are expected to remain low.

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