POST Online Media Lite Edition



 

USDA expects growth in beef and veal sector this year

Staff writer |
The latest forecast from the United States Department of Agriculture (USDA) indicates that global beef and veal production is set to increase a modest one percent this year to 59 million tonnes.

Article continues below






Continued herd expansion will drive production up for the major players, particularly the US, India and Brazil.

The USDA forecasts that the U.S. will remain the leading beef and veal producer globally, with volumes increasing by five percent on the year earlier to reach 11.3 million tonnes. This will be the first time since 2010 in which U.S. production has risen year on year.

Improved pasture conditions and lower feed costs have contributed to a favourable position for farmers in more recent times and cattle numbers have recovered. Exports from the U.S. are also forecast to be higher next year, possibly up by over eight percent to 1.1 million tonnes as growing domestic supplies put downward pressure on prices.

Australian production this year is now forecast to be back a notable 14 percent on 2015. The significant increase in the number of females slaughtered last year is a concern for the Australian cattle industry.

Considering this followed similar developments in 2014, and that female slaughter has now been higher year on year for three years, it is inevitable that this will ultimately lead to fewer calves and lower beef production into 2017 as well.

Meat and Livestock Australia (MLA) predicts that the number of cattle coming forward for slaughter this year and next will fall to levels not seen in more than twenty years.

The national herd is estimated to fall to 26.2 million head by June this year before declining slightly again in 2017, to 25.9 million head. If this occurs, it will represent a 3.4 million head, or 12 percent, fall since 2013 and will become the lowest national herd since 1993.

By the end of the year, annual cattle slaughter is estimated to be 7.6 million head, down 16 percent on the year, one of the largest drops ever recorded.

The subsequent drop off in export volumes could well allow the U.S. to regain a valuable market share in the Asian market, which has dropped off in recent years, offsetting stagnant shipments to Canada and Mexico.

USDA forecasts that Brazilian beef and veal production will increase by two percent in 2016, with volumes totalling 9.6 million tonnes. The issue of low oil prices has been hampering demand in Brazil’s main export markets, with developments in Russia delivering the most severe blow to the trade.

However, the reopening of the Chinese market has offset this, despite concerns over the economy, and created more opportunities for Brazilian beef. It is worth pointing out that 80 percent of Brazilian beef is consumed within the country.

As such, any further deterioration in the domestic economy this year could give rise to processors having to increasingly look to export markets to fill the void. Consequently, spurred by the continued depreciation of the Real, USDA forecast that exports will increase around nine percent this year.

USDA forecasts that India will hold its position as the largest exporter, despite only being the fifth largest producer of bovine meat. For this year, forecasts indicate that production levels will increase five percent on 2015 to 4.3 million tonnes.

Foreign trade is a significant part of India’s bovine sector, shipments accounting for almost half of the countries domestic production.

A rise in demand in Southeast Asia, the Middle East and North Africa will result in exports from India increasing by a similar level. Despite this increase, with India’s exports mostly made up of product from its buffalo herd – carabeef – which is of lower eating quality and at a lower price, producers in countries such as the U.S. or Australia are not in direct competition.

However, India’s presence in emerging markets could pose a threat to the currently more established meat industries, with the expectation of future demand growth taking place in these markets as population grows and consumers become more affluent.

In a notable development this year China is expected to become the second largest beef importer after the United States due to steady growth in consumption and new market access for Brazil and Argentina.

However, despite higher demand from Asia, global shipments to the Middle East and North Africa could well remain constrained as low oil prices continue to pressure economic growth.

Overall, the outlook for the global beef and veal sector looks moderately positive for 2016, with both production and exports recording an increase.

However, as the U.S. cattle cycle enters its rebuilding phase and if the economic difficulties in Russia, South America and the MENA region persist, there could be an increase in product on the global market which may drive a more competitive environment.


What to read next

New European guidelines on joint selling of agricultural products
New Zealand's cattle prices at near-record levels
USDA ordered re-inspection of Brazilian beef

Excessive rainfall and flooding threat in Puerto Rico and New Mexico

 
A trailing cold front in connection with a low pressure system currently moving east across the Great Lakes toward New England will bring a chance of rain into the eastern U.S. on this first day of November following an exceptionally dry October for this part of the country.
 
 

Latest

U.S. oil and gas rig count unchanged stays at 585
New Jersey Governor Murphy to lead economic mission to UK
Governor Moore commends launch of double-stack rail operations at Port of Baltimore
MEPPI will create at least 200 new jobs in Southwestern Pennsylvania

NEWS

Record heat in southern U.S.

Peru's ex-president Alejandro Toledo sentenced to 20 years in prison over corruption
U.S. weather: Dry in east; active pattern for west
Finland wins European Transport Safety Council’s road safety prize for 2024
Maritime crime and piracy incidents lowest since 1994
Bulgaria: EPPO accuses former mayor and ex-governor in investigation into fishing port in Varna
 

BUSINESS

Iran lifts ban on brand-new Apple phones import

Istanbul provides free public transport for unemployed residents
EIB backs Gran Canaria with €300 million loan for Salto de Chira hydroelectric project
New Zealand concludes high quality trade deal with Gulf Cooperation Council
African Development Bank approves $54 million loan for Mozambique’s first wind energy project
U.S. oil and gas rig count steady
 

Trending Now

Istanbul provides free public transport for unemployed residents

EIB backs Gran Canaria with €300 million loan for Salto de Chira hydroelectric project

Iran lifts ban on brand-new Apple phones import

Stellantis leverages its management organisation


POLITICS

Indonesia bans sales of Google's Pixel smartphones

UK Government ends miners’ pension injustice
Governor Pillen joins letter requesting Biden take action dealing with IV fluid shortage
Canada reduces credit card fees by 27 pct for small businesses
Zambia, China sign MoU to establish African nation's first cholera vaccine plant
Turkey imposes anti-dumping duties on steel imports from China, Russia, India, Japan
 

Today We Recommend

UK Government ends miners’ pension injustice


Highlights 

MEPPI will create at least 200 new jobs in Southwestern Pennsylvania

Solarcycle will create 640 new full-time jobs in Polk County, Georgia

Pennsylvania: GSK will create at least 200 new, high-paying jobs in Lancaster County


COMPANIES

Solarcycle will create 640 new full-time jobs in Polk County, Georgia

Polish Laude Smart Intermodal to build rail terminal in Ukraine
Pennsylvania: GSK will create at least 200 new, high-paying jobs in Lancaster County
Hemlock Semiconductor creating over 1,000 manufacturing and construction jobs in Michigan
Evergy to invest more than $2B in two new high-efficiency natural gas plants in Kansas
New AIG office hub to create 600 Metro Atlanta jobs
 

CAREERS

Stellantis leverages its management organisation

African Development Bank appoints director general for East Africa
Mars announces new leadership within its petcare business
OCI Global announces leadership changes
Ethypharm appoints Éric Chevalier as group human resources director
Exothera appoints Cedric Volanti as CEO
 

ECONOMY

Fraser Institute: Canada’s debt ranking falls from best in G7 to 7th worst

Kuwait reports $5.2 bln budget deficit in FY 2023-24
Eurozone reports modest Q1 GDP growth, stable annual inflation
Italy sees faster economic growth in Q1
Slovenia's economy expected to grow 0.9 pct in Q1
Italy faces deficit infringement procedure
 

EARNINGS

Ericsson Q2 sales down but North America up

Lockton revenue $3.55 billion
Motorcar Parts of America Q4 sales $189.5 million
Limoneira Q2 revenue $44.6 million
Lululemon athletica Q1 revenue increased 10% to $2.2 billion
PVH Q1 GAAP EBIT $205 million
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

U.S. confirms H5N1 bird flu in swine for first time

Bluetongue outbreaks escalate in Czech Republic
French farmers to resume nationwide protests in November
Greece on alert after outbreak of sheep pox
Argentina opened South African market to send porcine hemoglobin powder
Hong Kong suspends import of poultry meat and products from Canyon County, Idaho
 

LEADERSHIP

Employers prefer younger job candidates for AI roles although experienced workers perform same or better

Study finds workers misjudge wage markets
Some organizations may need to expand their hierarchical structures earlier than others
Study finds there's right way and wrong way to deliver negative feedback in workplace
Allyship is critical and its needs appreciation
Generating 'buzz' about new products can influence their success
 

CRIME

BHP, Vale agree to pay $30B damages for Brazil dam disaster

Commission fines České dráhy and Österreichische Bundesbahnen €48.7 million over collusion to exclude common compe
SEC charges Keurig with making inaccurate statements regarding recyclability of K-Cup beverage pod
SEC charges John Deere with FCPA violations for subsidiary’s role in Thai bribery scheme
AG Bonta secures $3.9 million settlement with cryptocurrency company Robinhood
Italy issues $6.4 million fine over Chinese cars badged as Italian
 

Magazine

TRAVEL

Radisson Hotel Group debuts in the heart of Tunisia’s capital city, Tunis

Morocco’s first Radisson branded hotel opens in Casablanca
Buna channels, an unreal and beautiful part of Bosnia and Herzegovina
JW Marriott unveils Mindful Haven with opening of JW Marriott Hotel Nairobi
Sotheby's Sports Week returns with fantastic artifacts
Red Roof properties open in Michigan
 

SEA, LAND, AIR

Citroën C3 Aircross, the most affordable compact SUV with 7 seats

2025 Chevrolet Equinox stands apart with fresh looks and capability
Hill Helicopters HX50, luxury in the sky
Opel Movano becomes fully equipped camper van
Porsche Panamera, new hybrid variants
Dodge Charger, 670 horsepower of electric
 

DESIGN

Cold night, hot fire pit, cool entertainment

Embellish your home with PVC panels
You'll have to hurry if you want one of 20 new Louis Vuitton watches
Luxury duvet looks good, fells good and keeps you healthy
Vacheron Constantin, watches for life and more
Schüller kitchens, where functionality marries design
 

GADGETS

MESA/Boogie Celebrates 40-year partnership with John Petrucci

reMarkable 2, monochrome tablet for your thoughts and your eyes
OnePlus Ace 3V, first with Snapdragon 7 Plus Gen 3
ASUS Zenfone 11 Ultra, flagship with a reason
Samsung Galaxy S24 is photography powerhouse
Casette tapes are making a big comeback, and so are portable players
 

HEALTH

One more barrier to developing vaccine for HIV removed

Rwanda begins world's first clinical trial for treatment of Marburg virus disease
Rwanda restricts gatherings amid Marburg virus outbreak, to begin trials of vaccine
Teksas Attorney General reaches settlement in first-of-its-kind healthcare generative AI investigation
Potentially deadly fungal disease spreading in California
First mpox vaccines arrive in Africa
 

MEANTIME

Einstein Telescope step closer

Exoplanet-hunting telescope to begin search for another Earth in 2026
India to build first phase of its own space station by 2028
Roscosmos chief approves schedule of creating Russian orbital station through 2033
Potentially habitable 'exo-Venus' with Earth-like temperature discovered
Rare species of wild bees discovered in Berlin