Beef demand falls as cost-of-living crisis hits

Grocery is the second-biggest driver of inflation after energy, and European retailers have acted in recent months to increasingly focus on value to retain market share, Bord Bia said in a statement to the Independent Farming.

Latest forecasts from the European Beef Forecasting Group point to a 1 percent reduction in beef consumption for 2022, with Germany consuming 4 percent less and France and Sweden each 1 percent less.

Softer demand, particularly for higher quality steak cuts, was partially offset by strong trade in forequarter beef, particularly for production products.

The EU beef herd is expected to decline further next year, with a slight recovery in UK beef production expected. Rising costs of living in these key Irish beef markets are expected to continue to impact beef demand as consumer concerns about sustainability, animal welfare and personal health are further weighed down by value for money concerns, Bord Bia said.

Figures from Bord Bia show that the latest cattle mortality forecast indicates annual cattle destruction by DAFM-approved facilities will reach 1.81 million head in 2022, an increase of 120,000 head from 2021 levels.

This increase is due to higher numbers of slaughter-age cattle available on Irish farms in 2022, lower exports of slaughter-age cattle to Northern Ireland and also a decision by some to culling cattle younger and lighter than in the previous years are.

Early indications for 2023 are that we will see a reduction in cattle availability in 2023 with a projected kill of 1.78 million head.

Global beef supply will decline marginally by 0.2 percent in 2023, according to the USDA, largely due to a decline in the US beef herd.