Article Summary: Beef is a massive industry that employs millions worldwide, significantly contributing to the world's food supply. The demand for beef is rising, particularly in developing countries, as populations and income levels continue to grow. It is a staple in diets worldwide, from the Americas to South East Asia, Oceania, Europe and beyond. This high demand has made the beef industry a global market worth billions of dollars, with countries like Brazil, the United States, and Argentina being major players. This blog explores the challenges of this demand, how the world can meet demand with supply and forecast projections for the industry current to 2023.
Have you ever wondered what the global beef industry is worth?
In Australia, beef is the country's largest agricultural sector and a significant contributor to the national GDP. In New Zealand, beef exports make up a substantial portion of the country's total exports, providing a vital source of foreign income. The industry also provides employment opportunities for thousands of people in both countries. It is an industry that attracts much media attention due to live exports and the treatment of animals, through to extreme weather our lands have suffered, namely drought in the central and northern parts of Australia.
But the importance of the beef industry extends beyond Australia and New Zealand. Beef is a valuable commodity in the global market, with demand coming from all corners. Not only is it a highly-traded commodity, but beef is also a significant source of protein for many people. It is a staple in diets worldwide, from the Americas to South East Asia, Oceania, Europe and beyond.
This high demand has made the beef industry a global market worth billions of dollars, with countries like Brazil, the United States, and Argentina being major players.
The beef industry has a considerable environmental impact, so ensuring that the sector operates sustainably and with minimal environmental impact is essential. Governments, industry bodies, and producers are working to ensure the industry is sustainable and environmentally responsible, with initiatives focused on reducing greenhouse gas emissions and water usage.
So what is the global beef industry worth?
Get ready to grill, because the global beef market is projected to reach a whopping US$ 421.61 billion by 2028, with a 4.05% compound annual growth rate.
According to the Global Beef Market Report 2023, that’s up from US$ 332.29 billion in 2022, which means that within six years, the world’s beef industry is forecast to grow by $90 billion. Huge!
This massive industry employs millions of people worldwide, significantly contributing to the world's food supply. The demand for beef is rising, particularly in developing countries, as populations and income levels continue to grow.
But like any industry, the beef market has challenges, including concerns over animal welfare, environmental impact, and health risks. Additionally, trade disputes, food safety regulations, and supply chain disruptions can cause hiccups in the industry. Despite these, the beef industry continues to invest in marketing and advertising. As a result, it has been valued at an impressive US$ 332.28 billion in 2022 and will only increase.
Here are some other need-to-know facts about beef:
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USA is the largest consumer of beef worldwide
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Brazil and the US Beef Industries are set to grow to the most
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Brazil is the second-largest producer of beef
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China is the top beef importer thanks to its expanding middle-class
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The US is another one of the largest beef importers in the world, yet also the biggest beef exporter!
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India is the biggest producer of buffalo meat, also considered a beef product
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Australia and Argentina are the world’s top grass-fed beef producers
Why is the beef industry growing so quickly?
There are several key factors that are contributing to the rise and rise of the world’s beef industry, such as:
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Increasing demand
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Improved production methods
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Improvements in transport and logistics
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Innovations in breeding and efficient feeding techniques
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Population growth in developing countries
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Rising incomes
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Development of trade agreements and advancements in international trade and relations
Who are the biggest players in the global beef market?
Here are some names you might be familiar with, all contributing to the supply and demand for nutrient-rich beef products worldwide, and who featured in the 2023 Global Report above:
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Tyson Foods, Inc.
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Danish Crown
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Cargill Incorporated
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Marfrig Global Foods S.A.
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N.H. Foods Ltd.
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Minerva Foods
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St. Helen's Meat Packers
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Hormel Foods Corporation
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JBS USA
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National Beef Packing Company, LLC
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Vion Food Group
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Australian Agricultural Company Limited.
And what about the current value of Australia’s beef industry?
According to recent forecasts by the Australian Department of Agriculture, Fisheries and Forestry, the gross value of Australia’s beef production is expected to decrease by 10% to $14 billion in 2022-23. But the good news is there will be an increase in production to offset falling cattle prices in 2023-24, which means the gross value of production should remain steady. This is direct from
Another factor supporting the average sale yard prices is the world beef prices when the US herd rebuilds. This is great news for the industry and those involved in it.
On another note, there have been concerns about the availability of labour impacting beef slaughter capacity in the industry. However, the outlook period shows that labour availability is not expected to be an issue. This is excellent news for those employed in the industry, and it should help ensure the continued success of the beef industry in Australia and, further afield, New Zealand.
So, while there may be some challenges ahead, the beef industry in Australia and New Zealand looks to be in good shape. There will be some temporary decreases in the gross value of production, but production increases and world beef prices should help support the industry. Additionally, labour availability is not expected to be an issue in the foreseeable future.
We look forward to seeing how this plays out, but for now, if the weather is on our side and we embrace technology and best practice to help make managing our herd and farming easier, the future of beef will be sizzling!
Until we meet again, Happy Producing!
- The Dedicated Team of Pasture.io, 2023-04-13