The latest Rabobank Beef Quarterly report predicts global beef production will experience slow growth next year as a result of strong demand.
South America will drive growth, with Brazil expected to see a 3.5 percent increase in production, and growth of 2 percent in China and less than 1 percent of growth in the U.S.
“Although beef is not strictly a fungible product, demand and supply pressures will cause a redistribution of product among markets.
Market participants will need to be vigilant for any direct and indirect impacts as supply chains are tested,” said Angus Gidley-Baird, senior animal protein analyst at Rabobank.
The report also mentions African swine fever as a driver of pushing consumers to other proteins, including beef.
As a result of the disease outbreak, China has begun to approve numerous more beef plants around the world for importing.
The report said beef demand in the U.S. has been very good through 2019, and is expected to continue into 2020 even with increased supplies of competitive proteins.
