Preamble:
In this era of food, beef is favored by diners because of its high nutritional value and delicious taste. The high price often puts many people off. However, the recent market situation seems to have brought us good news - "beef freedom" may really be coming! As domestic beef prices continue to fall, spring seems to have arrived for foodies.
Body:
With the arrival of May, beef prices have also ushered in a downward trend. Official data shows that the average price of beef in the country has fallen to 65 yuan/kg, a decrease of more than 10% compared with the pre-holiday period, and the specific price has been reduced by about 6~7 yuan/kg. This is undoubtedly good news for consumers who love beef. Many people are excited to say that they can now enjoy the delicious taste of beef more freely!
So, what is the reason for the continued decline in beef prices? Let's find out.
Analysis of the reasons for the decline in beef prices
Seasonality: May is the off-season for sales in the mainland food retail market. At this stage, the overall demand for beef is relatively low, making the market supply exceed the demand, which in turn makes it difficult to keep beef prices at a high level.
Low prices of competing meat: At present, the prices of competing meats such as pork, eggs, and poultry in China are at a low level. This has led to a greater impact on beef consumption as consumers prefer more affordable options when choosing meat.
The sluggish international beef market has also affected the domestic market: production in major beef exporting countries has remained stable, while international beef prices have generally been low. This situation has enabled the country to import large quantities of lower-priced frozen beef, thereby expanding the market share of low-priced beef in the country. The cost price of some imported beef is as low as 12 to 16 yuan per catty, which undoubtedly has a significant impact on the domestic market.
Challenges of continued high productivity and inventory digestion: In recent years, domestic fattening cattle production capacity has remained at a high level. This situation has led to an imbalance between supply and demand in the market, where the supply of beef in the market significantly exceeds the demand, so there is significant pressure to digest capacity. In order to alleviate the overstock, some farmers and traders have been forced to promote at price cuts, which has undoubtedly driven the price of beef further down.
How much is a pound of beef now?
Beef prices vary across the country depending on geography and supply and demand. The following are the wholesale prices of beef in some regions:
Hebei: The wholesale price of beef fluctuated between 22 yuan and 27.5 yuan per catty.
Inner Mongolia: The wholesale price of beef is roughly in the range of 22.5 yuan to 26.5 yuan per catty.
Liaoning: The wholesale price of beef is between 21 yuan and 29 yuan per catty.
Shandong: The wholesale price of beef ranges from 22 yuan to 30.52 yuan per catty.
Fujian: The wholesale price of beef is between 20 yuan and 26.5 yuan per catty.
It should be noted that the above prices are for reference only, and actual prices may fluctuate due to market changes.
Forecast of beef market trend in May
Regarding the beef market in May, many industry insiders are pessimistic. They pointed out that the combination of many factors caused the price of beef to rise in May, so it was difficult for the price to increase.
Seasonal off-season factors will continue to affect beef consumption. As temperatures rise, demand for beef will further decrease. The low price of competing meat is unlikely to change in the short term, which will continue to have a substitution effect on beef consumption. The downturn in the international beef market and the high level of domestic production capacity will also have a suppressive effect on beef prices.
There are also some optimistic voices that with the effective control of the epidemic and the gradual recovery of the economy, people's demand for high-quality beef is expected to resume growth. In addition, the government's support policies for animal husbandry and farmers' measures to reduce production may also have a supporting effect on beef prices.
epilogue
"Beef freedom" seems to be on the horizon, and it is undoubtedly a huge challenge for farmers and traders. In the face of multiple pressures such as changes in market demand, the impact of competing meat prices and competition in the international market, they need to assess the situation and respond flexibly. And for the majority of consumers, "beef freedom" is undoubtedly good news.
We must also recognize that the ups and downs of beef prices are the result of a combination of factors, and the future market situation is still full of uncertainties. Therefore, while enjoying the "freedom of beef", we should also pay close attention to market dynamics and reasonably formulate our own consumption strategies.