World Beef Production to Rise in 2008

US - The latest forecasts released by the United States Department of Agriculture (USDA) report that global beef production will grow by one per cent (483,000 tonnes) in 2008 to almost 61 million tonnes.
calendar icon 5 May 2008
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According to LMC, total beef consumption is expected to rise by 554,000tonnes to 60.5 million tonnes.

The USDA reports that global beef exports will grow one per cent to 7.7 million tonnes, but there will be little change to global imports at 7.2 million tonnes. Global

Global production 61 million tonnes

Global beef production will rise due to increasing levels of output in the US, Brazil, China, India and Mexico. These increases will more than offset falling beef production in the EU, Argentina, Australia, the Russian Federation and Canada. Output in the US, the largest beef producer, will increase by one per cent to 12.2 million tonnes because of strong levels of cow slaughterings and heavier carcase weights. Production will increase by three per cent in China to 7.7 million tonnes and by six per cent in India to 2.66 million tonnes. EU beef production is forecast to fall by one per cent to 8.1 million tonnes, with Australian output falling six per cent to 2.08 million tonnes. Beef production in the Russian Federation will drop by two per cent to 1.34 million tonnes, a decrease of 16 per cent compared to 2004.

Consumption +1% to 60.5 million tonnes

While beef consumption will remain unchanged in the US in 2008 at 12.8 million tonnes, total global consumption will rise due to increasing demand in the main developing economies of the world. Demand in China will grow by four per cent to 7.7 million tonnes, with consumption in Brazil increasing three per cent to 7.6 million, due to more beef on the home market because of the EU import ban. Demand in the Russian Federation will grow by three per cent to 2.5 million tonnes. It will rise in India by five per cent to 1.9 million. EU consumption will fall one per cent to 8.6 million tonnes, with demand slipping by two per cent and six per cent in Japan and Canada to 1.16 and 1.03 million tonnes respectively.

International Trade grows

Beef exports will rise by one per cent in 2008 due to increased exports from India, the US and Uruguay. Exports from Brazil, the largest exporter, will remain steady at 2.2 million tonnes. The US will continue to be the largest market for beef imports, but demand for imported beef will fall by four per cent to 1.3 million tonnes due to increased domestic production. Demand in the Russian Federation will rise by 10 per cent to 1.1 million tonnes, but imports to Japan and the EU will contract by 5 and 14 per cent to 650,000 and 550,000 tonnes respectively.

Single Application Closing Date Reminder

Producers are reminded that the closing date for submitting their 2008 Single Application Forms is Thursday 15 May 2008. Applications received by DARD after 15 May and up until 9 June 2008 will incur late penalties. Forms received after 9 June 2008 will be rejected. So far approximately 8,000 applications have been received by DARD.

OCDS ENDS IN DECEMBER 2008

The Older Cattle Disposal Scheme (OCDS) payment rate for May 2008 has decreased by £1.39 to £230.99 per head due to the Euro / Sterling exchange rate weakening by one per cent compared to the end of March 2008. The payment was converted at €1 = 79.105p. Scheme finishes in 2008

Producers are reminded that OCDS will finish at the end of December 2008 and after that date all pre-August 1996 cattle will have to be disposed of without any compensation. At the start of May 2008 there were 32,149 pre August 1996 cattle recorded in the NI herd by APHIS. So far this year 3,234 cattle have entered OCDS. At the current rate of disposals (approximately 200/head per week) there could be up to 25,000 cattle pre-August 1996 left on NI farms in January 2009.

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