14 October, 2019
RALEIGH, North Carolina, October 14, 2019 - The global production of beef is expected to grow at a CAGR of 1.12 percent while the global consumption is estimated to grow at a CAGR of 1.03 percent, according to Beroe Inc., a procurement intelligence firm. The market is driven by increasing demands for beef due to greater awareness of the beef protein content.
Global beef production is driven by major beef producing regions like the US, Brazil, the European Union, China, India, and Australia, constituting approximately 71 percent of total production. The key beef consuming countries are the U.S., accounting for 20 percent of the global consumption, followed by the EU, Brazil, and China for 13 percent each, and India for 4 percent.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Beef is emerging as a rich protein source and cheaper meat as compared to poultry, lamb, and pork driving the growth of the global beef market. The global beef market has been oversupplied in the past few years but with the growing demands is expected to move towards a balanced scenario by 2020. The trade war between the U.S. and China has reduced the supply of other forms of meat such as Pork to China, as a result of which there is greater demand for beef. The global supply of beef is increasing, supporting the growth of the market.
New trends in the global beef market are focused on increasing the weight of cattle before slaughter in a healthy manner. Feeds rich in protein are expensive, and add to the cost of production, but positive results have been observed by using crude protein in feeds. Insemination of cattle from the Aberdeen Angus breed of bulls produces calves of higher slaughter weight and higher beef content.
The research methodology adopted for the report included:
The principle cost drivers in the beef market are feed, accounting for 72 percent of the total costs, operating costs for 18 percent, and other costs for 10 percent. Beef prices exhibit seasonality due to dependency of biological and market fundamentals on climatic conditions with cattle spending most of the time in outdoor feedlots before reaching the market, including the last six months in the lifecycle at the farm. The weather conditions during that period may affect the cattle’s weight, and in turn, supply.
The report also includes:
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