New Rabo AgriFinance Report Provides Favorable Outlook for US Beef Industry Over Next 10 YearsWed, 30 Aug 2017 14:19:50 CDT
The U.S. has an overall mature beef industry with a steady consumption rate, however the industry has had several disruptions over the last five years leaving room for expansion in the near future. The second in a new series of reports from the RaboResearch Food and & Agribusiness group, provides a ten-year outlook that sees a rebuilding effort in the beef and cattle industries and increases in U.S. exports.
The report, “Expanding Beef Production Increases the Need for Exports: U.S. Long-Term Beef and Cattle Baseline Outlook,” provides an outlook through 2025 for U.S. beef and cattle industries. The purpose of the baseline is to create a point of comparison which can be utilized for strategic planning and scenario analysis.
“Population growth, along with improving middle-class incomes, are the global drivers behind the opportunity for increased beef exports,” notes RaboResearch Global Senior Data Analyst Sterling Liddell. “Conversely, beef imports into the U.S. face headwinds as an increased number of head available for slaughter combines with relatively persistent carcass weights to equal, or exceed, domestic demand levels.”
The report looks to offer ideas for new opportunities that can be explored and risks that must be monitored over the next five years.
“While the trend of increasing quality is difficult to quantify, the combination of genetic improvement, formula pricing that includes premium price structures, and additional days of feeding due to lower grain prices will continue to drive U.S. beef quality higher,” notes Don Close, Senior Animal Protein Analyst and co-author of the report. “The premiums in the U.S. are expected to increase relative to choice, branded, and select classifications.”
This U.S. Long-Term Beef and Cattle Baseline Outlook report is the second in a six part series. Earlier this month the U.S. Long-Term Grains and Oilseed Baseline Outlook was released. The remaining Rabobank North American Baseline Outlook publications will be released over the course of Q3 2017 will include:
1. U.S. Long-Term Pork & Poultry Baseline Outlook
2. Mexico Long-Term Grain, Oilseed, & Animal Protein Baseline Outlook
3. Canada Long-Term Grain, Oilseed, & Animal Protein Baseline Outlook
4. U.S. Farm Economics Baseline Outlook
Source - Rabo AgriFinance
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