Forecast: Global beef and sheep prices volatile for rest of 2023

There is now a growing expectation that global beef and sheep prices could come under some pressure during the period ahead.

This is despite the fact that the same markets held up well during the first half of 2023, in relative terms.

According to market analysts, one of the key factors contributing to the relatively strong market conditions to-date this year, was the decision taken by governments around the world to subsidise energy prices.

In addition, the winter of 2022/2023 was milder than had been predicted. As a consequence, one of the key contributors of consumers’ regular household outlays was kept very much in check.

However, this scenario is now fast-changing. Governments are stepping away from the energy supports previously made available.

As a consequence, consumers have no option but to face-up to the full cost of expensive energy bills.

And the knock-on impact of this and the other factors that contribute to the continuing cost-of-living crisis, will factor into their food-buying decisions during the second half of 2023.

Beef and sheep prices

“Volatility across many international beef and lamb markets may well be the major factor coming into play over the next few months,” Livestock and Meat Commission (LMC) chief executive Ian Stevenson confirmed.

“This was certainly the view expressed by representatives of the international beef and lamb sectors, who participated in a recent global meat market outlook presentation, delivered by the GIRA Meat Club.”

Based in Switzerland, Gira is an international consultancy and forecasting agency, operating at every level of the food supply chain. LMC is a member of the organisation.

“There are a number of factors now coming into play that will impact on both the production and demand side of the redmeat market equation,” Stevenson continued.

“These include the cost-of-living crisis, impacting at consumer level, and the continuing developments in Ukraine.

“The reality is that inflation is now impacting significantly on buying habits. Consumer pressure will, almost certainly, start to come on market prices.”

The LMC chief explained that from a production point of view, there has been some cost reductions, from a feed and fertiliser perspective.

“However, political uncertainty remains a major issue with the ongoing war involving Russia and Ukraine being the most obvious example of this,” he said.

“Instabilities of this nature serve only to add production costs, from a farming and food perspective. It all adds up to growing levels of volatility and uncertainty impacting on global meat markets.”