Rabobank: Global Beef Prices to Hit Record Level In 2013

Dec 14, 2012

Rabobank Releases Q4 Global Beef Industry Report

Rabobank released its Q4 and provides an outlook for global beef prices in 2013. Global beef prices are expected to set record highs in the New Year as supply will be minimal and demand will continue.

Rabobank`s final quarter of 2012 highlights the unexpected larger global supply which can largely be attributed to recovery of beef cattle herds in Brazil, Argentina, and Australia. These factors coupled with a sluggish world economy have weighed on prices globally. Looking to some of the key cattle exporting countries, prices have only risen in U.S. and New Zealand. However, it`s important to note that the increases seen in these two countries are not high enough to offset the spike in costs.

When examining year over year comparisons, the Global Cattle Price Index that begins in December was down 11% from where it began in November.

“We expect to see global supply hovering around 2012 levels, with minor ups and downs being determined by the extent to which the increase in Southern Hemisphere will outpace the reduction in Europe and the U.S,” said Guilherme Melo, Rabobank Analyst.

The report concludes that the industry is experiencing a bullish factor and the need for discipline in supply for the poultry and pork sectors. If increases in poultry and pork prices rise, it could be a benefit to the beef industry. The gap between the sources of meat proteins could see the shift in demand favorable towards the beef industry.

Video: Finding a Balance of Innovation and Regulation - Dr. Peter Facchini

Regulations help markets and industry exist on level playing fields, keeping consumers safe and innovation from going too far. However, incredibly strict regulations can stunt innovation and cause entire industries to wither away. Dr. Peter James Facchini brings his perspective on how existing regulations have slowed the advancement of medical developments within Canada. Given the international concern of opium poppy’s illicit potential, Health Canada must abide by this global policy. But with modern technology pushing the development of many pharmaceuticals to being grown via fermentation, is it time to reconsider the rules?

Dr. Peter James Facchini leads research into the metabolic biochemistry in opium poppy at the University of Calgary. For more than 30 years, his work has contributed to the increased availability of benzylisoquinoline alkaloid biosynthetic genes to assist in the creation of morphine for pharmaceutical use. Dr. Facchini completed his B.Sc. and Ph.D. in Biological Sciences at the University of Toronto before completing Postdoctoral Fellowships in Biochemistry at the University of Kentucky in 1992 & Université de Montréal in 1995.