Rabobank Releases Report on Global Beef Production
Report analyzes global trade dynamic; finds U.S. at potential disadvantage in the absence of strong agreements
St. Louis, Mo. (January 25, 2016) – Beef production patterns are changing around the world and the industry is seeing the role new trade dynamics, policy, and consumer-driven preferences will play in shaping future success. According to a new report from the Rabobank Food & Agribusiness Research and Advisory group, U.S. beef producers are seeing the very nature of beef trade evolving as other countries are producing beef under favorable export agreements, the U.S. dollar is gaining in value, and domestic markets are making demands producers haven’t experienced before.
“In the U.S., we are hearing from producers that they are wrestling with strategic questions centered around whether creating a safe and nutritious product will be enough to sustain a profitable market for quality U.S. beef,” says report co-author and Rabobank protein analyst Don Close.
The report explores imports and exports of global beef-producing countries and the development of China and Southeast Asia as major consumers.
“Over the past few years, China has become a major player in the global beef trade,” notes Rabobank analyst Matt Costello. “While per capita consumption for beef is low compared to more traditional beef markets, projections suggest Greater China will become the world’s largest beef importer in the coming few years.”
Against this backdrop, the U.S. beef industry faces an increasingly competitive global beef market. While the U.S. is expected to remain the global standard for quality and supply stability, the domestic industry has the opportunity to determine future investment through a robust discussion about competitive strategy.
The report outlines three suggestions from Rabobank to keep U.S. products competitive.
“We feel a focus on enhancing U.S. export opportunities, producing beef that meets emerging consumer preferences, and implementing programs such as a voluntary, industry-driven cattle and beef traceability program are important steps to strengthen the U.S. position in the market,” notes Close. “Looking closely at trade, it’s our point of view that if TPP is not passed, it puts U.S. exports at a significant disadvantage in a global marketplace since there is an anticipated increase in exports from South American countries that have trade agreements separate from TPP.”
A full copy of “AgFocus: Global Beef Production Becoming More Competitive and More Complex – How Should the U.S. Industry Respond?,” is available by contacting Sarah Kolell at Rabo AgriFinance.
Rabobank Protein Analyst Don Close discusses the report on global beef trade.
CONTACTS:
FAR Report Requests/Media Inquiries
Sarah Kolell
Rabo AgriFinance
(816) 516-7984
Sarah.Kolell@RaboAg.com
Jessup Wiley
Rabobank, N.A.
(559) 447-7946
Jessup.Wiley@rabobank.com
About Rabo AgriFinance
As a leading financial services provider for agricultural producers and agribusinesses in the United States, Rabo AgriFinance adds value using industry expertise, client-focused solutions, and by creating long-term business relationships. Rabo AgriFinance offers a comprehensive portfolio of services that gives producers the right products to prepare for, and take advantage of, market opportunities. Rabo AgriFinance representatives offer a wide array of financial services and knowledge to help customers realize their ambitions. This comprehensive suite of services includes loans, insurance, input finance and effective risk management products. Rabo AgriFinance is a division of Rabobank, the premier bank to the global agriculture industry and one of the world’s largest and safest banks.
About Rabobank, N.A.
Rabobank, N.A. is a California community bank and a leading provider of agricultural financing and full-service banking products to California consumers, businesses, and the agriculture industry. With nearly 120 retail branches, we serve the needs of communities from Redding to the Imperial Valley through a regional structure that promotes local decision-making and active community involvement by our employees.
Rabobank, N.A. is a division of Rabobank Group, the premier lender to the global food and agricultural industry and a financial services leader providing commercial, retail, and agricultural finance solutions in 48 countries around the world. From its century-old roots in the Netherlands, Rabobank has grown into one of the world’s largest and safest banks.