Contrasting fortunes in global meat markets

Contrasting experiences in global meat markets during the Covid-19 pandemic have been identified by Quality Meat Scotland (QMS).

In Scotland, beef processors faced increased staff absences and had to adapt to new physical distancing rules while at the same time a loss of orders from the hospitality sector and a change in the balance of retail demand meant stocks of higher value steak cuts built quickly.

The US suffered one of the biggest impacts, where outbreaks of Covid-19 in the meat processing workforce led to plant closures in April, and reduced slaughter capacity throughout April and May, down more than a third at its peak.

Meanwhile, the sharp contraction in pork production in China in 2018 and 2019 has led to continued growth in imports of beef, up 45% year-on-year in the January to May period, to help close the country’s overall meat shortage.

Iain Macdonald, senior economics analyst at QMS, said: “Exporters from Brazil and Argentina are benefiting most from Chinese demand, helped by an improvement in their export competitiveness, as global financial market movements caused by the pandemic have lowered the value of their currencies.

“However, both countries would look very exposed if Chinese meat production was to recover in the coming years,” he added.