Procurement Resource’s New Beef Industry Intelligence Report (2022) – Analyses the Key Sourcing Strategies, Demand Indicators, Price Drivers, and Supplier Assessment

Category Driver

One of the key drivers for the increase in the demand for beef meat is its high protein and low-fat content which is leading people globally to include the meat in their diet as a healthy substitute. In the present times, more and more people with higher spending power and improved standards of living are helping the beef market to grow at a higher speed. This growing movement of consuming lean protein is projected to provide several opportunities to various meat processing vendors and food companies to put their money into the beef industry.  Other important drivers are the entry of a variety of cold storage substitutes and an extraordinary rise in the number of domestic butchers that are helping in the growth of the global beef market. Additionally, the United States is the greatest consumer of beef worldwide along with China, the European Union, Brazil, and India. Brazil, Australia, the United States, India, Argentina, New Zealand, and Canada export the maximum volume of beef meat across the world.

Industry Developments in terms of Technology/Innovation/R&D/Sustainability

Efficient value chains, a high level of farm productivity, and efficiency are required to achieve sustainability in the beef industry as it helps in attaining target-market specifications. These circumstances also help to promote the welfare of the environment and the animals. The vast beef production practices generally consist of pasture-based cow-calf and stocker-backgrounding or grow-out methods, and pasture or feedlot finishing. In the pasture-based systems, cattle are subjected to extreme levels of environmental deviation and there are only a few specific types of genotypes that are well suited to this type of variation. Beef production techniques that utilise beef breeds need to focus on suitable genotypes and superior yield compared to maintenance for the rearing herd and raising and finishing cattle. This process augments the income and reduces costs specifically feed costs which may go up to 60% or more of production expenses. New-age technologies and digitalisation facilitate swift capture and use of environmental and cattle performance data, even though the systems are massive, which in turn improve productivity, competence, sustainability, and animal wellbeing.

In August 2021, Cargill company launched a cross-industry partnership to speed-up dairy-beef crossbreeding techniques. Cargill clubbed with partners from various industries, including Nestle, to ascertain the Dairy Beef Accelerator. The three-year program will help to fasten the learning and adoption of crossbreeding methods with the beef producers, emphasising the exceptional opportunities that ‘beef on dairy’ can resolve. In September 2020, Walmart Foundation, Cargill, and McDonald’s invested over USD six million in an initiative headed by the World Wildlife Fund which aims at making long-term improvements to the grasslands of Northern Great Plains. This collaboration would step up the sustainable results and encourage ranchers in the beef supply chain. Moreover, World Wide Fund for nature is working with beef producers and various companies, and their supply chains to help improve the sustainability of beef manufacturing. To add further, while leaders in the beef market are facing challenges related to beef meat storage, the demand for both, cured and non-cured beef products has seen immense growth over the years.

Key Findings of the Report:

• High-quality beef is obtained from the premature aging of special breeds of beef. Such beef meats are form, soft, lean, and bright red in colour. Beef meat can be used in hamburgers, steaks, roasts, and packed meat used for home cooking.
• A major share of beef market revenue in 2020 was mainly due to the higher demand for shank, ribs, round, chuck, plate, and flank of beef. Furthermore, there is a rise in demand for grass-fed brisket due to its low-fat and low calories content than normal beef.
• With 70.9 million tonnes of beef meat consumed in 2020, it is the third most extensively consumed meat in the world.
• Beef meat was at USD 247.35 per pound as of quarter three of 2021. The beef market is expected to reach USD 383.3 billion by 2027.
• There was a great impact of COVID-19 pandemic on overall meat production which included a shortage of workforce leading to the shutdown of meat factories that in turn caused a low level of production, processing, distribution, and marketing prospective.
• The demand for beef will increase at a higher rate as the global population is predicted to go beyond 9 billion by 2050.
• The regional markets for the industry can be divided into the United States, Brazil, and European Union.
• The United States is the greatest consumer of beef worldwide along with China, the European Union, Brazil, and India. Brazil, Australia, the United States, India, Argentina, New Zealand, and Canada export the maximum volume of beef meat across the world.
• The industry report includes value chain analysis, cost structure, price movement, demand and price indicators, negotiation levers, and procurement best practices. 
• Key suppliers in the report include JBS USA, Tyson Foods, National Beef Packing Co., Cargill Meat Solutions Corp., Marfrig, and Seaboard.

Why Choose Procurement Resource?

• The beef industry report includes preferred sourcing strategies by key suppliers present in the category
• The report provides an overview of the production process along with recent technologies being positioned
• The information regarding price movement, price hedging, and demand-supply is also included in the report
• The beef industry report further offers category-specific regional trends and market dynamics
• The report also covers supplier profiles including financial data, product portfolio, and recent category-based initiatives 
• It provides extensive data pertaining to the demand, supply, cost, and pricing of beef, along with an in-depth analysis of key indicators of category demand and pricing 
• The beef industry report provides category-based buyer and supplier negotiation levers and sourcing and procurement practices
• The report extensively assesses the demand influencing and restricting factors on a regional and global level

About Us:

At Procurement Resource we have a team of highly skilled and seasoned experts who undertake extensive research to deliver our customers the newest and most up-to-date sourcing and procurement reports, cost models, price analysis, benchmarking, and category insights, which support our clientele to simplify their procurement process. Procurement Resource ensures that our clients remain at the forefront of their industries by offering actionable procurement intelligence with the help of our expert analysts, researchers, and domain experts. We work with a varied collection of procurement teams across industries to get insights and real-time data that our customers can effectively execute. Our team also tracks the prices and production costs of a broad range of goods and commodities, thus, providing our clients with updated and reliable data. We, at Procurement Resource, with the help of the latest and cutting-edge methodologies in the industry, assist our clients to understand the supply chain, procurement, and industry environment to form strategies that ensure their optimum growth and success in every step.

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