Beef production expected to rise at a global level
The increase in production will be observed especially in Brazil and the United States and it will determine a significant rise in beef exports from these two countries. In the United States beef exports are expected to increase by 7% for the third consecutive year in 2018, while its domestic consumption is also forecasted to rise, but the local demand will not cover the increase in production.
As for the situation in Brazil, here the beef exports are expected to rise by 5% this year.
Angus Gidley-Baird, senior animal proteins analyst at Rabobank, said that Brazil is increasing its presence in its existing exporting markets. The country is working on receiving approval for another 11 meat plants for exporting tot the Chinese market. If Brazil is granted even more acces to this market, this will mean it will have a total of 27 beef plants capable of accessing the Chinese market.
The Rabobank analyst says China will increase its import requirements to 800,000 tons of beef in the following period, making competition on this market especially fierce.
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