【Brazilian Nellore Beef Cattle】
Preface
I don't know if you feel it: the frequency of eating beef has increased in recent years, the price has become more affordable, and there is no need to worry about not being able to buy it at all - this is no joke, if it was placed 30 or 40 years ago, you would not have been able to eat it if you had money, and you could buy beef at will.
【Brazil Ranch】
In 2023, for example, we will produce about 7.5 billion kilograms of beef, or about 7.53 million tons. But this year, we also imported about 2.7 billion kilograms of beef (including offal), or about 2.74 million tons, making it the largest importer of beef in the world.
The total of self-produced and imported beef (including offal) is about 10.27 million tons, and the per capita share is about 7.3 kilograms.
Why are we the world's largest importers of beef, and where does it come from?
【Large ranch in Mato Grosso, Brazil】
First, everyone is more and more fond of eating
In 2023, for example, we will produce about 7.53 million tonnes of beef, which is equivalent to 5 kilograms of beef per person per year according to our total population.
In 2012, our own beef production would be enough to meet the domestic market demand – our per capita beef consumption was only about 4.6 kilograms that year.
- In 2022, our per capita beef consumption is around 6.9 kg.
- By 2023, our per capita beef consumption has exceeded 7.1 kilograms.
[Cowboys in Argentina are grazing]
Whether it is barbecue, steak, hot pot, or dumplings, it can be said that beef and offal are inseparable at all. From 2012 to 2023, our annual per capita beef consumption has come out of a steady upward curve.
Today, homegrown beef can only meet 70% of domestic demand, so it is normal to import beef. So, in 2023, we are rightfully the world's largest beef importer, not one.
[Argentina has a high proportion of beef cattle and dairy cows]
2. The six major sources account for more than 90%
In 2023, for example, we imported about 2.74 million tonnes of beef (including offal), of which 6 countries are our most important source countries for beef (including offal).
- First place: South America - Brazil, exports about 1.18 million tons of beef (including offal) to us, accounting for about 43%.
- Second place: South America - Argentina, exports about 520,000 tons of beef (including offal) to us, accounting for about 19%.
- Third place: South America - Uruguay, exports about 270,000 tons of beef (including offal) to us, accounting for about 10%.
- Fourth place: Oceania - Australia, exports about 230,000 tons of beef (including offal) to us, accounting for about 8.3%.
- Fifth place: Oceania - New Zealand, exports about 210,000 tons of beef (including offal) to us, accounting for about 7.5%.
- Sixth place: North America - the United States, exports about 160,000 tons of beef (including offal) to us, accounting for about 5.7%.
【Ranchers in Uruguay】
In 2023, these six countries exported more than 2.5 million tons of beef (including offal) to us, accounting for about 94% of our total imports that year. In particular, the three countries in South America have in fact become our most important overseas beef (including offal) supply bases.
[Uruguay becomes our third largest source of imported beef]
3. Why not import it nearby?
But in fact, Mongolia's animal husbandry is not so developed, and in addition, it depends on whether Mongolia is willing to sell it, whether the price is reasonable, and so on.
【Pastures in Mongolia】
Take 2023 as an example:
Mongolia exports only about 80,200 tons of animal meat throughout the year, and if you look at the data above, you can understand that such a small output is far from meeting our needs, and if it is too entangled, it will easily affect our relations and cooperation with other important meat exporting countries.
[Mongolia's pastures have been degrading]
What is even more surprising is that Mongolia's 80,200 tons of various meats in 2023 is still about 5 times higher than in 2022.
In addition, it is also necessary to combine the wishes of Mongolia - to do business, pay attention to "you are willing to buy, I am willing to sell", and no one should force anyone.
【Yurts & Pastures】
In the past, Mongolia took the export of various deli meats to us as one of its business priorities, but in recent years, Mongolia has adjusted the direction of large customers and large commodities:
It is more focused on exporting all kinds of ground meat (mainly beef and mutton, of course) to the Gulf countries in the Middle East, and also exports a large number of live cattle and sheep, such as about 362,000 live cattle sold to the Gulf countries in 2023.
【Mongolia's vast desert region】
Fourth, the price change of imported beef
1. The overall price is declining:
In 2022, the total amount of beef (including offal) imported by us will be about 17.7 billion US dollars, or about 127 billion yuan
In 2023, the total amount of beef (including offal) imported by us will be about 14.2 billion US dollars, or about 102 billion yuan
In 2023, the price of international beef (including offal) has dropped significantly, so our total import volume has increased, but the total import value has decreased by about 20%.
【Ranches in Southern Australia】
2. Of course, the unit price has also decreased:
In 2022, the average price of our beef (including offal) imports will be about US$66.02 million per 10,000 tons, or about 47 yuan per kilogram
In 2023, the average price of our beef (including offal) imports will be about 51.9 million US dollars per 10,000 tons, or about 37 yuan per kilogram
This is only the average import price, not the actual sales price or retail price after officially entering the domestic market.
【Cattle at Tarawala Ranch, Australia】
Fifth, our own beef production
At the end of 2023, we will have about 105.09 million cattle in stock, 50.23 million in slaughter, and 31.57 million in beef cattle.
In fact, the number of beef cattle slaughtered increased by about 3.8% year-on-year compared with 2022, and the total amount of self-produced beef also increased by about 4.8% year-on-year compared with 2022.
However, the total domestic demand for beef is also growing, with the total domestic beef demand of about 9.3 million tons in 2021, more than 9.8 million tons in 2022, and 10 million tons in 2023.
[Black cattle from New Zealand pastures - belong to beef cattle]
Under the premise that the economy continues to develop and everyone's living standards continue to improve, our total self-production and total import of beef will not stop.
In 2022-2023, the global per capita beef consumption will be about 7.5 kilograms, and we are only a little more than 7.1 kilograms, even if Japan and South Korea, which are also in East Asia, their beef prices are more expensive, but their per capita beef consumption per year also exceeds ours - excluding the consumption of other meats, South Korea is about 11 kg/person/year, and Japan is about 8 kg/person/year.
【Cows from New Zealand pastures】
epilogue
As for the large countries with total beef exports or per capita consumption, such as Argentina in South America, the per capita beef consumption is about 52 kilograms per year, the United States in North America is about 26 kilograms per capita beef per year, and Spain in Europe is about 33 kilograms per capita per year - this is only the consumption of beef, not the consumption of pork, chicken, seafood and other meats.
【Fresh beef hot pot that everyone loves】
We will not compare with these "no meat, no joy" countries, because they are quite different from us in terms of eating habits, metabolism, etc. However, in terms of per capita beef consumption, we are still confident that it will surpass that of Japan and South Korea, which are also East Asian countries.
【Beef offal is an excellent ingredient in our place】