Beef and veal production in selected countries fell by one per cent in 2008 and a similar fall is forecast in 2009. The global financial and economic crisis is resulting in a weakening in demand for beef. The food service sector is the most affected as consumers switch to more in-home eating. Consumers are also trading down to cheaper cuts such as mince. The manufacturing beef sector is holding up better than the prime beef sector. The fall in demand has reduced cattle prices but at least intensive beef producers are now benefiting from lower feed costs. World trade in beef is also falling although some exporting countries, notably in the southern hemisphere, are benefiting from currency devaluations.
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