The latest Rabobank report has identified the potential in China’s beef market over the next decade with Chinese investors likely to play an influential role in the global beef sector over the next decade. Total demand for beef is expected to increase from the current eight million to 10.2 million tonnes by 2025.
It is believed that although market growth will slow down, emerging consumer segmentation and retail channels will create new demand for value-added and branded beef products. Strong demand from the foodservice and retail market channels will also provide opportunities for both Chinese and foreign companies in the further processing sector.
Local production is expected to meet 80 percent of demand, with the remaining 20 percent to be met by imports by 2025. This figure of 20% will be a rise of 5% from current levels; the increase will be driven by the domestic production limitation and the demand for higher-value, quality, premium foreign products in the country.
Pan Chenjun, senior analyst from Rabobank said: “Beef companies face the challenge of where to source consistent beef supply, but they also need to develop, and even create, new markets by delivering new products and addressing the needs for convenience, tailor-made value-added products.”
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
