Beef Procurement Intelligence Report 2025-2030

Beef Supply Demand Overview

The North America region leads in the production and consumption in beef procurement report, with USA as the largest consumer of beef in the region. Beef plays a significant role in the culinary traditions of countries like Canada and the United States. In Asia Pacific region, the key drivers of demand of beef include rising disposable incomes, a growing middle class, and increased consumption in fast-growing economies like China and India. Additionally, premium beef products like grass-fed and organic beef are gaining traction due to health and sustainability concerns.

On the supply side, expansions of beef farms and beef production are concentrated in regions like North America, Brazil, and Australia, with these countries serving as key exporters in the beef procurement report. However, supply chains are vulnerable to disruptions due to factors such as climate change, disease outbreaks, and fluctuations in feed costs.

Beef Cost Structure

The cost structure of beef production is driven by several key factors, including raw materials, labour, energy, operational expenses, and regulatory compliance. Among these, feed costs represent the largest expenditure, accounting for up to 60-70% of total beef production costs. The price of feed is influenced by global grain prices, including maize and soybeans, and can fluctuate due to weather events or geopolitical factors.

Energy costs also play a significant role in the beef procurement report, as cattle farming requires considerable energy for activities such as transportation, processing, and refrigeration. These costs are particularly high in regions with elevated energy prices. Labor costs, including wages for farm workers, transporters, and abattoir staff, are another substantial factor. Advances in automation and better management practices help to reduce these expenses.

Regulatory costs, such as those related to animal welfare, environmental impact, and food safety, are rising, particularly in developed markets with stringent standards. These regulations contribute to the overall cost modeling but also impact the market’s competitiveness, especially in premium beef sectors.

Beef Pricing Trends

Beef pricing models are influenced by fluctuations in feed costs, labor expenses, and supply-demand dynamics. The cost of feed, driven by global grain prices, plays a critical role in determining beef production costs. Recent pricing trends in beef procurement report show an upward trajectory due to rising feed prices, increased demand from emerging markets, and supply chain disruptions such as droughts and disease outbreaks. Additionally, high fuel and transportation costs have contributed to price hikes.

Beef pricing strategies have also been impacted by changing consumer preferences, with demand for premium products like organic and grass-fed beef pushing up prices. On the supply side, droughts in key producing regions and restrictions on beef imports and exports due to health concerns have contributed to volatility. However, technological advancements in production and sustainable farming practices are expected to help stabilize prices in the long term.

Beef Procurement Best Practices

Procurement practices in the beef procurement report focus on ensuring a steady supply of high-quality beef at competitive prices while managing sustainability concerns. Key strategies include establishing long-term contracts with suppliers to reduce the impact of price volatility, particularly in feed and energy costs. Diversifying sourcing regions helps mitigate risks associated with climate events or disease outbreaks, ensuring a reliable supply chain.

Environmental compliance is becoming an increasingly important factor in procurement decisions, as consumers demand sustainably sourced products. As per the beef procurement report, procurement teams are increasingly focused on working with suppliers that meet animal welfare, sustainability, and traceability standards. Efficient logistics, including refrigerated transport and storage, are essential to maintaining the quality of beef products. Advanced procurement tools and equipment, such as data analytics and market forecasting, are used to better manage costs, predict market shifts, and enhance supply chain resilience.

Key Players in the Beef Industry

Recent Developments in the Beef Procurement Report

• In April 2023, Aleph Farms, one of the leading cultivated meat producers, announced plans to launch its brand Aleph Cuts with beef products, such as Petit Steak. The company was planning to launch these products in Israel and Singapore.
• As per the beef procurement report, in March 2022, The Global Roundtable for Sustainable Beef (GRSB), which is a scientific advisory council designed to improve sustainability in the global beef industry, announced the launch of the Beef Carbon Footprint Guideline to improve sector-wise consistency in the calculation of the carbon footprint of the beef industry.
• In February 2022, JBS presented at Gulfood 2022, the world's largest annual food and beverage trade show, held in Dubai (UAE). Friboi, the top-selling Brazilian beef brand under JBS, offered attendees an experience with the Black Friboi and 1953 ranges.
• As per the procurement research, in August 2024, Central Valley Meat announced the completion of an acquisition agreement made in May for the Cargill Meat Solutions beef processing facility located on North Avenue, just west of Highway 41. This strategic acquisition aims to enhance Central Valley Meat's processing capabilities and increase its operational efficiency in the competitive meat market.
• In July 2021, Israel-based cultured meat company Aleph Farms received USD 105 million in a Series B investment round, bringing its funding up to USD 119.4 million.