Cattle and pig prices hit a high

By Andrew Heskin, Partner and ARA specialist

Prices for cattle and pigs have hit an all-time high according to an analysis carried out by Quality Meat Scotland (QMS).

Despite bleak economic forecasts globally, the worldwide demand for beef is expected to continue to be strong. The reason for the rise in prices can be attributed to a drop in supply from the USA and Australia which is still to recover cattle numbers after suffering from an extensive drought. Cattle numbers in the USA are also too low to meet the current demand for beef. The increase in demand has come from China, which is increasing imports as the country emerges from lockdown restrictions due to the Covid 19 pandemic.

Iain Macdonald, QMS Market Intelligence Manager said: “Set against slightly reduced world output, global beef demand is forecast to remain resilient despite economic headwinds, with consumption almost unchanged.   “Mismatch between supply and demand at country-level means that global trade in beef will need to rise significantly.”

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