Global Beef Prices Break Record Since 1960

Yushin explained that the beef industry requires substantial long-term investments and faces stringent regulatory pressure, especially in major producing countries like the U.S. and the EU. Concerns over livestock farming`s environmental impact often make it less appealing and profitable. Combined with unfavorable weather conditions, global cattle populations are declining. Consequently, the global supply of beef saw no growth this year, and production is expected to increase very slowly in the coming years, unlike poultry and pork. Yushin highlighted that many people globally cannot afford beef, which is considered a premium meat. However, as developing economies expand and incomes improve, demand for beef—particularly in countries with large Muslim populations where it`s a popular alternative to poultry—is projected to remain high. He consistently forecasted that beef would become expensive, warning that if Russia doesn`t bolster its domestic beef production (despite having suitable conditions, except for high credit costs), it risks waiting in line on the global market within five to six years. In Russia, beef prices have indeed risen in recent years, at least keeping pace with overall food inflation. Last year, prices increased even more significantly due to a nearly 14% jump in demand from rising disposable incomes, while supply remained stagnant. This year, a faster decline in cattle numbers and production is observed, as high interest rates make cattle farming unprofitable. Consumers are willing to pay for the taste and health benefits of beef, seeing it as a culinary pleasure. An increasing number of people, even those with moderate incomes, are frequenting steak-houses, illustrating a preference for quality. While Russia imports cheaper cuts of beef from countries where they are less desired, it also exports high-quality beef at prices exceeding even U.S. export rates, signifying its superior quality.