Beef demand in the US to decline in the post-pandemic world


Rabobank analyst expects a reduction in the supply of livestock due to the decrease in the number of cattle.

Posted on Feb 19 ,11:43

Beef demand in the US to decline in the post-pandemic world

Disruptions in the supply chain related to the coronavirus epidemic have maintained the demand for beef in the US market causing a spike in prices the last year, according to the latest analysis from Rabobank. However, there will be a drop in demand after the recovery, warns Dustin Aherin, analyst - animal protein.
According to him, virus control will relieve much of the current strain on the processing and distribution sectors. Throughout the next several years, innovations accelerated by Covid-19 will go live, as well as technological advancements across the supply chain. Simultaneously, tighter cattle supplies from a declining beef cow herd will come to fruition.
At the same time, demand for beef is expected to decline in the domestic market as al those factors mentioned above will increase the prices.
"Post-pandemic, Rabobank expects domestic US beef demand to retreat from the all-time highs realized throughout 2020. The extreme late-spring spike in retail prices can largely be explained by the reduced availability of beef and other meat products following the well-documented, Covid-19-induced supply chain disruptions,” says Mr Aherin.
However, the elevation of beef demand, which accounts for both supply and price, indicates that higher beef prices have resulted from more than just supply changes, particularly with meat supplies recovering in recent months. “The exact circumstances that fostered beef demand’s incredible strength during the pandemic also foretell potential vulnerabilities during the post-pandemic recovery period,” he added.

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