Sustainability in beef supply chains to increase
Scrutiny over beef supply chains in terms of sustainability has increased in the past 12 months, according to the latest Rabobank report. Senior animal protein analyst Angus Gidley-Baird believes that the pace of changes in this sector will increase in the near future.
The market will continue to be the main driver of change in most parts of the world, supported by the actions of governments, NGOs, pressure groups, as well as investors and the rise of alternative proteins.
"At the same time, beef production globally is coming under increasing scrutiny over its impact on animals and the environment. The past 12 months have seen a marked increase in beef supply chain responses to such scrutiny, and we expect even more in the coming 12 months," explained the analyst.
Major changes have been made by the beef industries of New Zealand and Australia and, most probably, they will continue to improve in that way as the supply is getting tighter due to increased demand from the Asian markets. Meantime, a decline in beef prices in the US market, combined with a solid supply will be responsible for a slow pace of changes expected in this market.
Brazil is also increasing its beef production thanks to higher volumes exported to China and the Middle East but the Amazonian wildfires incident can put on hold or even call off the EU-Mercosur deal. So far, France, Ireland and Finland have expressed their will for a call off on this deal.
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