Global Beef Market Outlook
Global Beef Market Outlook
World beef production is expected to increase about capita beef consumption may also rise in Central and
1.4 percent per year through 2007. China is expected Eastern Europe. However, growth will vary from
to lead the world in growth in beef demand, and country to country and will depend on the degree and
domestic production will likely expand to meet speed with which countries have liberalized their
demand. Increased incomes and initially low invento- economies. In Russia, only gradual increases in beef
ries in the FSU and Brazil will stimulate production. demand are expected because of the availability of
U.S. beef production is still recovering from the relatively cheaper pork and poultry. Per capita
impacts of the poor grain crop in 1995/96. As a result consumption in the United States is expected to
of herd liquidation and the relative length of the increase slightly in the early 2000s as a result of the
biological cycle, U.S. beef production will decline cattle cycle, but then decline as relative prices favor
through 2000 before increasing at a moderate rate consumption of other meats. As a result of continuing
through the end of the forecast period. Production in concerns over BSE, demand for beef in the EU is
the EU is expected to decline gradually through the expected to be limited.
forecast period as beef consumption falls and stocks
remain high. Increasing import demand in areas like the Pacific
Rim, and in countries such as Russia where production
Global per capita consumption of beef is projected to has been adjusting to market forces, will mean growth
increase gradually as meat demand rises in response to opportunities for exporters. The major exporters will
income growth. Although the current economic crisis continue to increase production for export, while
in Asia could force some household budget realloca- domestic production in the major importing countries
tion away from beef consumption in the short term, is projected to stagnate, mainly because of the rela-
growth is expected to return to its trend over the fore- tively lower cost of imported beef.
cast horizon. However, in some important Pacific Rim
markets, such as Japan, there may be limited potential Much of the growth in beef and veal import demand is
to further expand beef’s role in the diet. Other Asian projected in the Pacific Rim countries where, over the
markets, such as China and the Philippines, may have projection period, increasing incomes and lower trade
more potential for increasing per capita beef demand. barriers will raise consumption beyond that which can
be satisfied by their production base. While economic
In Latin America, significant gains in per capita problems associated with the Asian currency crisis
consumption are expected for Mexico and Brazil. Per may slow Asian imports in the near term, significant
Figure 29 Figure 30
Beef: Historical and projected real prices Beef: Historical and projected price ratios
1990 dollars/ton Ratio
5,000 3.0
2.5
4,000 Beef
(New York) Beef/broiler
2.0
3,000 1.5
1.0
2,000 Beef/pork
0.5
1,000 0.0
1960 65 70 75 80 85 90 95 2000 05 1960 65 70 75 80 85 90 95 2000 05
Brazil. In Brazil, beef production will expand to meet As in the FSU, the future pace of reform in the CEE
growing domestic demand. Per capita consumption is countries is uncertain and could affect the outlook for
expected to increase about 1-2 percent per year, and production and trade of beef. It is unclear to what
increases in beef production are expected to keep pace extent governments will maintain support to livestock
with the growth in consumption. Thus imports are producers, how fast production will recover, or how
forecast to increase slightly in the near term but to quickly these countries will look to expand exports.
decline toward the end of the period. Due to tariff Trade developments with the EU and Russia will also
reductions under MERCOSUR, Argentina will likely have a strong impact.
be the major supplier to Brazil.
The crisis in the EU over bovine spongiform production. The EU Commission has identified the
encephalopathy (BSE, or “mad cow” disease) is beef sector as the top priority for policy reform,
projected to have a lingering impact on the EU beef with a proposed 30-percent reduction in the beef
sector, with rippling effects throughout European price under discussion. Another factor that will
agricultural markets. Beef consumption in the EU discourage beef production is the ever-declining
dropped 12 percent in 1996, the initial year of the price of beef during the projection period. Despite
crisis, and recovered slightly in 1997, but is projected lower beef prices relative to pork and poultry, the
to continue to decline in the longer term. projection is based on the assumption that
Consumption has been steadily declining since the consumers will continue to harbor health concerns
late 1980’s, and BSE will accelerate this trend. The until BSE is eradicated and the European beef
projections assume that BSE’s dampening effect will supply is again deemed safe. Even in such a
last another 4-5 years and that beef consumption will scenario, it is unclear whether beef consumption
return to trend around 2002. would fully recover to pre-BSE levels.
A major problem faced by the EU is that production Declining beef consumption throughout the EU will
cannot be adjusted quickly enough to address the be offset by gains in pork and especially poultry
market imbalance, resulting in a substantial stock consumption, which is forecast to rise 15 percent
buildup over the next few years. The UK’s 6-year over the next decade. It is assumed that some
cattle eradication program will account for about a 3- consumers will reduce or eliminate meat consump-
percent annual production decline. But this alone will tion altogether, rather than substitute other meats.
not be enough to bring production in line with Therefore, where previous baselines plotted a gradual
consumption. Production will exceed consumption by increase in total meat consumption, this year’s results
as much as .5 million tons, and WTO limits on subsi- project virtually no change in overall meat consump-
dized exports and the ban on British beef exports will tion during the projection period.
inhibit the EU’s ability to export this surplus on
world markets. This imbalance results in large inter- The increased demand for pork and poultry will stim-
vention stocks in the near term, until beef production ulate domestic production of these grain-intensive
more closely reflects the shrunken demand. meats, driving up demand for feed grains. Demand
for corn gluten feed, a major feed input for beef
The projections are based on the assumption that the cattle, will be dampened, mirroring the decline in
EU will adopt additional policies to reduce beef beef consumption.
United States
1994 35,691 313.64 11,194 1,075 731 11,528 44.2 252
1995 37,294 310.64 11,585 954 826 11,726 44.6 239
1996 38,399 301.52 11,578 940 851 11,731 44.2 171
1997 37,591 306.08 11,506 1,119 870 11,745 43.8 181
1998 36,255 311.60 11,297 1,216 950 11,585 42.9 159
1994-98 ave. 37,046 308.59 11,432 1,061 846 11,663 42.8 200
2000 34,480 307.60 10,606 1,105 1,012 10,697 38.9 187
2001 34,787 311.47 10,835 1,107 1,036 10,900 39.3 193
2002 34,997 318.31 11,140 1,106 1,073 11,162 39.9 205
2003 34,879 323.17 11,272 1,104 1,112 11,253 39.9 216
2004 34,540 327.10 11,298 1,099 1,144 11,253 39.6 216
2005 34,363 331.34 11,386 1,094 1,180 11,300 39.5 216
2006 34,337 334.62 11,490 1,085 1,217 11,358 39.4 216
2007 34,270 337.55 11,568 1,077 1,254 11,391 39.2 216
Argentina
1994 12,400 209.68 2,600 3 376 2,230 65.8 21
1995 12,300 211.38 2,600 6 520 2,080 60.7 27
1996 12,500 206.40 2,580 9 470 2,120 61.1 26
1997 12,200 209.02 2,550 8 430 2,130 60.8 24
1998 11,700 211.97 2,480 10 450 2,050 57.9 14
1994-98 ave. 12,220 209.66 2,562 7 449 2,122 59.2 22
2000 11,768 213.72 2,515 0 462 2,053 56.7 22
2001 11,947 214.53 2,563 0 483 2,079 56.8 23
2002 12,300 215.45 2,650 0 521 2,128 57.6 24
2003 12,380 216.32 2,678 0 538 2,140 57.3 24
2004 12,349 217.10 2,681 0 560 2,121 56.2 24
2005 12,262 217.99 2,673 0 572 2,101 55.1 24
2006 12,344 218.89 2,702 0 597 2,105 54.7 24
2007 12,533 219.74 2,754 0 623 2,130 54.8 24
Australia
1994 8,332 219.52 1,829 6 1,168 669 37.4 42
1995 7,917 216.88 1,717 5 1,092 650 36.0 22
1996 7,767 210.89 1,638 7 1,016 624 34.2 27
1997 7,961 216.05 1,720 5 1,095 621 33.7 36
1998 7,900 212.66 1,680 5 1,075 625 33.6 21
1994-98 ave. 7,975 215.26 1,717 6 1,089 638 34.0 30
2000 8,155 219.99 1,794 0 1,148 646 34.1 43
2001 8,083 223.43 1,806 0 1,154 652 34.1 43
2002 8,030 227.40 1,826 0 1,167 658 34.2 44
2003 8,053 228.73 1,842 0 1,177 665 34.2 44
2004 8,102 228.22 1,849 0 1,179 670 34.2 44
2005 8,133 229.68 1,868 0 1,192 676 34.2 45
2006 8,156 230.14 1,877 0 1,196 681 34.2 45
2007 8,175 231.07 1,889 0 1,203 686 34.3 46
Brazil
1994 28,088 204.00 5,730 88 383 5,415 34.1 50
1995 29,803 204.01 6,080 124 291 5,903 36.7 60
1996 31,144 197.47 6,150 144 277 6,057 37.2 20
1997 29,514 204.99 6,050 160 240 5,980 36.4 10
1998 29,184 206.28 6,020 180 240 5,970 35.9 0
1994-98 ave. 29,547 203.27 6,006 139 286 5,865 34.9 28
2000 29,094 208.36 6,062 188 234 6,015 35.5 0
2001 29,595 209.39 6,197 190 234 6,153 36.0 0
2002 29,892 210.42 6,290 190 240 6,240 36.2 0
2003 30,327 211.49 6,414 188 252 6,350 36.5 0
2004 30,855 212.54 6,558 187 262 6,483 36.9 0
2005 31,430 213.62 6,714 185 275 6,624 37.4 0
2006 32,063 214.67 6,883 184 285 6,782 38.0 0
2007 32,715 215.74 7,058 183 296 6,945 38.6 0
Continued---
Canada
1994 3,083 292.90 903 286 220 962 34.1 31
1995 3,148 294.79 928 256 219 971 34.1 25
1996 3,505 284.74 998 237 286 951 33.0 23
1997 3,685 283.85 1,046 235 360 923 31.7 21
1998 3,725 282.68 1,053 240 380 909 30.9 25
1994-98 ave. 3,429 287.41 986 251 293 943 31.7 25
2000 -- -- 1,093 204 382 914 30.5 25
2001 -- -- 1,099 200 384 915 30.2 25
2002 -- -- 1,102 196 386 912 29.9 26
2003 -- -- 1,113 192 390 915 29.7 26
2004 -- -- 1,124 188 396 916 29.5 26
2005 -- -- 1,133 184 399 918 29.3 26
2006 -- -- 1,141 181 399 923 29.2 26
2007 -- -- 1,150 177 396 931 29.3 26
China
1994 24,479 133.58 3,270 3 74 3,199 2.7 0
1995 30,497 136.21 4,154 3 95 4,062 3.4 0
1996 37,015 133.62 4,946 3 79 4,870 4.0 0
1997 40,000 135.00 5,400 5 60 5,345 4.4 0
1998 43,000 134.88 5,800 7 50 5,757 4.7 0
1994-98 ave. 34,998 134.69 4,714 4 72 4,647 3.7 0
2000 38,478 150.71 5,799 6 105 5,700 4.5 0
2001 38,881 156.27 6,076 6 107 5,975 4.7 0
2002 39,214 162.06 6,355 7 108 6,254 4.9 0
2003 39,471 168.05 6,633 7 110 6,530 5.1 0
2004 39,646 174.27 6,909 8 112 6,805 5.3 0
2005 39,754 180.71 7,184 9 114 7,079 5.5 0
2006 39,803 187.40 7,459 10 115 7,354 5.6 0
2007 39,794 194.33 7,733 10 117 7,626 5.8 0
EU-15
1994 28,706 273.71 7,857 426 1,096 7,603 20.5 521
1995 28,162 279.10 7,860 374 923 7,431 19.9 396
1996 27,991 280.05 7,839 354 913 6,888 18.4 788
1997 27,519 276.61 7,612 335 876 6,855 18.3 1,004
1998 27,258 273.94 7,467 344 880 6,855 18.2 1,080
1994-98 ave. 27,927 276.68 7,727 367 938 7,126 18.8 758
2000 -- -- 6,617 350 817 6,228 16.4 1,282
2001 -- -- 6,417 350 817 6,060 15.9 1,172
2002 -- -- 6,372 350 817 5,950 15.6 1,127
2003 -- -- 6,322 350 817 5,916 15.5 1,066
2004 -- -- 6,339 350 817 5,923 15.4 1,015
2005 -- -- 6,355 350 817 5,938 15.4 965
2006 -- -- 6,349 350 817 5,932 15.4 915
2007 -- -- 6,377 350 817 5,935 15.4 890
Continued---
Japan
1994 1,537 391.67 602 842 0 1,446 11.6 118
1995 1,506 399.07 601 927 0 1,518 12.1 128
1996 1,389 399.57 555 899 0 1,438 11.5 144
1997 1,345 399.26 537 872 0 1,430 11.4 123
1998 1,320 399.24 527 914 0 1,440 11.4 124
1994-98 ave. 1,419 397.63 564 891 0 1,454 11.5 127
2000 1,314 398.33 523 986 0 1,507 11.9 130
2001 1,332 398.42 531 1,011 0 1,539 12.1 133
2002 1,329 399.25 531 1,038 0 1,566 12.3 135
2003 1,322 400.15 529 1,064 0 1,591 12.5 137
2004 1,317 400.84 528 1,084 0 1,610 12.6 139
2005 1,312 401.75 527 1,108 0 1,633 12.8 141
2006 1,305 402.76 526 1,125 0 1,649 12.9 142
2007 1,297 403.78 524 1,140 0 1,663 13.0 143
Mexico
1994 8,310 217.81 1,810 90 1 1,899 20.6 0
1995 8,550 216.37 1,850 42 2 1,890 20.1 0
1996 8,180 220.05 1,800 100 2 1,898 19.8 0
1997 8,220 218.98 1,800 138 3 1,935 19.8 0
1998 8,000 222.50 1,780 172 3 1,949 19.6 0
1994-98 ave. 8,252 219.10 1,808 108 2 1,914 18.9 0
2000 8,568 222.81 1,909 208 5 2,113 20.5 0
2001 8,905 224.37 1,998 220 6 2,212 21.1 0
2002 9,244 225.77 2,087 232 6 2,313 21.7 0
2003 9,501 227.24 2,159 242 7 2,394 22.1 0
2004 9,755 228.70 2,231 251 7 2,475 22.5 0
2005 9,998 230.25 2,302 262 7 2,557 22.9 0
2006 10,219 231.73 2,368 278 7 2,639 23.3 0
2007 10,418 233.25 2,430 295 7 2,718 23.6 0
New Zealand
1994 2,945 192.19 566 3 466 98 28.3 61
1995 3,104 202.96 630 2 504 100 28.5 89
1996 3,858 163.56 631 3 515 128 36.1 80
1997 3,630 168.04 610 2 500 121 33.7 71
1998 3,600 167.50 603 2 480 118 32.5 78
1994-98 ave. 3,427 177.39 608 2 493 113 30.9 76
2000 3,660 164.97 604 0 493 111 30.0 68
2001 3,749 163.83 614 0 501 113 30.3 68
2002 3,833 162.85 624 0 508 116 30.8 68
2003 3,876 162.31 629 0 511 118 31.1 68
2004 3,884 162.87 633 0 513 120 31.2 68
2005 3,887 162.95 633 0 512 121 31.4 68
2006 3,890 163.03 634 0 511 123 31.6 68
2007 3,889 163.28 635 0 510 125 31.8 68
Continued---
Poland
1994 3,249 124.65 405 18 14 409 10.6 10
1995 2,687 148.86 400 8 17 393 10.2 8
1996 2,950 130.85 386 23 27 385 10.0 5
1997 2,750 136.36 375 23 25 372 9.6 6
1998 2,650 135.85 360 20 25 355 9.2 6
1994-98 ave. 2,857 134.82 385 18 22 383 9.8 7
2000 -- -- 389 13 26 376 9.6 6
2001 -- -- 379 13 19 373 9.5 6
2002 -- -- 368 13 15 366 9.3 6
2003 -- -- 366 16 15 367 9.3 6
2004 -- -- 366 17 15 368 9.3 6
2005 -- -- 364 20 15 369 9.3 6
2006 -- -- 362 25 15 372 9.3 6
2007 -- -- 362 30 15 377 9.4 6
Russia
1994 19,771 163.88 3,240 541 4 3,791 25.6 389
1995 17,292 158.11 2,734 612 5 3,402 22.9 328
1996 14,715 175.33 2,580 480 5 3,055 20.6 305
1997 13,015 176.72 2,300 500 5 2,795 18.9 287
1998 10,915 183.23 2,000 510 5 2,505 16.9 287
1994-98 ave. 15,142 169.78 2,571 529 5 3,110 21.0 319
2000 -- -- 2,467 531 5 2,994 20.2 287
2001 -- -- 2,499 558 5 3,052 20.6 287
2002 -- -- 2,500 591 5 3,086 20.8 287
2003 -- -- 2,538 613 5 3,146 21.2 287
2004 -- -- 2,593 615 5 3,203 21.5 287
2005 -- -- 2,643 625 5 3,263 21.9 287
2006 -- -- 2,695 639 5 3,329 22.3 287
2007 -- -- 2,759 649 5 3,403 22.8 287
South Korea
1994 778 257.07 200 165 0 372 8.3 15
1995 780 274.36 214 194 0 416 9.2 7
1996 850 277.65 236 191 0 429 9.4 5
1997 983 274.67 270 225 0 450 9.8 50
1998 986 278.90 275 255 0 500 10.8 80
1994-98 ave. 875 273.02 239 206 0 433 9.2 31
2000 1,014 277.71 282 304 0 557 11.8 81
2001 1,009 278.30 281 306 0 590 12.3 77
2002 1,002 278.74 279 336 0 619 12.8 74
2003 994 279.68 278 366 0 648 13.3 70
2004 985 280.91 277 396 0 677 13.8 66
2005 975 282.05 275 425 0 704 14.2 62
2006 965 282.90 273 455 0 732 14.7 58
2007 953 284.16 271 485 0 759 15.1 55
Ukraine
1994 8,841 161.41 1,427 0 168 1,256 24.5 100
1995 8,258 143.62 1,186 0 191 1,020 20.0 75
1996 7,959 149.01 1,186 33 200 994 19.5 100
1997 7,300 124.66 910 32 76 871 17.2 95
1998 6,900 130.43 900 30 70 875 17.3 80
1994-98 ave. 7,852 142.88 1,122 19 141 1,003 19.9 90
2000 -- -- 971 0 178 792 15.7 90
2001 -- -- 988 0 180 808 16.1 90
2002 -- -- 1,016 0 185 831 16.5 90
2003 -- -- 1,039 0 191 848 16.9 90
2004 -- -- 1,065 0 200 865 17.2 90
2005 -- -- 1,090 0 204 886 17.7 90
2006 -- -- 1,111 0 207 904 18.0 90
2007 -- -- 1,132 0 209 923 18.4 90