Rabobank: The factors driving ‘record prices’ in global beef market
Sylvester Phelan, Agriland (Ireland)
June 3, 2021
Many key beef production and consumption areas around the globe are “currently experiencing high or record prices for beef or cattle”, according to the latest beef quarterly report from Rabobank.
In its Beef Quarterly Q2 2021 report, published on Monday (May 31), Rabobank’s RaboResearch team noted that many regions across the globe are “experiencing either high cattle prices or high beef prices”.
While there are some common factors, such as strong demand from China, local drivers are arguably more important in creating these record cattle and beef prices, the report notes.
Angus Gidley-Baird, senior analyst – animal protein at Rabobank, said: “We believe many of these local factors will correct and cause an adjustment in prices.
“However, with China’s demand expected to remain firm, we also think the market has seen a fundamental step up.”
These record prices – whether cattle or beef – also highlight the pressures of a very tight market, the analyst said, adding:
“Given the growth in demand and global trade, pressures created in the current system mean that seasonal conditions that may have once been considered slightly abnormal are now causing major shifts in markets.”
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