Rabobank Report: Moving Globally; What role will China play in the global beef market?
Rabobank sees great potential in China’s beef market, and believes that Chinese investors will play an influential role
in the global beef market over the next decade. According to Rabobank’s latest report, Moving Globally: What role will China play in the global beef market?, China’s beef demand will grow an additional 2.2 million tonnes by 2025. Driven by the weak domestic production, but
with strong demand, the beef sector will likely become the first agricultural sector where China has high integration
with the rest of the world and Chinese investors are expected to play an influential role in the global beef market.
In addition to the volume gap, China’s beef market also demonstrates potential for value-added and branded beef
products. Strong demand from the food service and retail market channels provides opportunities for both Chinese and
foreign companies in the further processing sector.
“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,” says Pan Chenjun, senior analyst from Rabobank.
To cope with the challenge, Chinese beef companies aim to participate in the whole supply chain--from farming to
processing--in order to not only secure resources such as grassland, but also to take a strategic step to integrate the
whole value chain. During the process, both big companies and medium-sized companies will be actively participating in
cross-border investments.
Although such outbound investment is just at the beginning stage, Rabobank expects more investments to take place in the
coming decade. With Australia remaining the top consideration, South America is becoming a new interesting area and US
market still remains uncertain.
ENDS