We’ve seen a lot of change in the beef industry in the past few years. The coronavirus pandemic caused shutdowns and supply chain issues. Prices have fluctuated. As we look to 2023, experts share some predictions they have for the global beef industry. We’ll bring you a summary today, as well as some information on how that can affect you as a consumer or rancher. Visit our blog for more insight into the beef industry.
Production Numbers
Rabobank expects that, generally, countries in the northern hemisphere will see a decrease in beef production in the coming year, while countries in the southern hemisphere will see an increase. Let’s discuss some movers and shakers specifically: U.S. production is expected to shrink, while Australia, a significant provider of beef to the U.S., will see a rise in production in Q1 of 2023 after a year-over-year decrease in Q4 2022.
What This Means for the U.S. Supply
If the United States will see a decline in beef production, consumers will have to get the meat imported from elsewhere. While Canada might be able to pick up some slack, they’re going through their own liquidation process at the moment. More beef might be imported from Mexico next year. New Zealand is still in their own overall decline in beef production, and Australia is in a recovery from their liquidation phase. As far as Europe goes, it has not served as a large supplier of beef to the U.S.
What This Means for the Consumer
South America has the volume to contribute additional beef to the United States’ supply, but trade access is limited. Unless serious changes are made, Rabobank expects pressure on the market from consumers, resulting in rising beef prices in the U.S. It’s a good time to be a rancher in the United States.
Consumers can avoid unnecessary price hikes by buying directly from local sources, like Dark Hammock Legacy Ranch. You’ll ensure your beef is fresh, nutritious, and doesn’t come from across the world. Visit our website to get your own.
