Beef Quarterly Q2 2022: Climate-neutral Beef Coming to a Store Near You

The first signs of softening consumer confidence are apparent in most markets, with wholesale prices for beef coming under pressure even though production costs are higher. A downward adjustment of cattle prices and upstream input costs will be needed to restore processor margins and to maintain beef’s competitiveness with consumers. We expect ongoing adjustments of consumption and margins in all markets as we head into Q3 2022.

Meanwhile, lockdowns in China and biosecurity risks in Indonesia pose notable implications for trade. Lockdowns of major Chinese cities are further constraining beef demand and restricting foodservice sales. As a result, Chinese beef imports dropped in Q1, and we expect them to be down in Q2. Continuation of the lockdowns will impact China’s beef imports for 2022. In Indonesia, official reports of lumpy skin disease (early March) and foot-and-mouth disease (late April) have placed authorities in trading nations – particularly Australia and New Zealand – on high alert. As notifiable diseases, these highly infectious diseases not only have implications for cattle productivity, they also have trade implications for countries that become infected.

Finally, with increased focus on carbon over the last two years, we have seen numerous companies, industries, and governments make commitments around the reduction of greenhouse gases. Most major meat processing companies around the world have a statement on the environment and a commitment to reduce emissions – and in many cases, to reach net-zero emissions – by a specified timeframe. We see the same for major food retail and foodservice companies. Until now, most commitments have not necessarily changed what consumers see. But that is all starting to change as the first movers release climate-neutral products onto shelves.

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  • Angus Gidley-Baird

    Senior Analyst – Animal Protein
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  • Justin Sherrard

    Global Strategist - Animal Protein
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  • Eva Gocsik

    Analyst - Animal Protein
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  • Chenjun Pan

    Senior Analyst - Animal Protein
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  • Wagner Yanaguizawa

    Analyst - Animal Protein
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  • Genevieve Steven

    Analyst – Agriculture
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  • Andrick Payen

    Analyst
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  • Roland Fumasi

    Head of RaboResearch Food & Agribusiness - North America
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