In this article, we will take a look at the global beef industry. We will also be looking at some of the major players in this market and the 25 biggest beef producing countries in the world. If you wish to skip our detailed analysis, you can go directly to the 5 Biggest Beef Producing Countries in the World.
The Beef Industry
According to a report by Research and Markets, the global beef industry was valued at $332.28 billion in 2022 and is expected to grow to $421.61 billion by 2028 at a compound annual growth rate of 4.05% over the forecast period.
Region wise, North America currently dominates the beef market. The United States is one of the largest consumers and exporters of beef. Beef is one of the most important staple foods in the country. Beef is also produced in high amounts in the region. Mexico is another leading country in beef exports in this region.
Asia Pacific tends to be a high growing region in this market. India is also known to be one of the biggest beef producers. China produces and exports large quantities of beef as well. Imports of beef from the US are also common in East Asia which depicts the high consumption level in the area. This region also comprises developing nations due to which the demand for beef is high and constantly increasing. Japan and South Korea have also been importing beef to fulfill their local demands.
The Market Leaders
Some significant players in the beef market include Tyson Foods, Inc. (NYSE:TSN), Hormel Foods Corporation (NYSE:HRL) and BRF S.A. (NYSE:BRFS).
Tyson Foods, Inc. (NYSE:TSN) is one of the world’s largest processors of beef, chicken and pork. It is also known for exporting large volumes of beef outside the United States. It distributes meat and other processed products through grocery, discount and club stores.
On August 7, Tyson Foods, Inc. (NYSE:TSN) reported earnings for the fiscal third quarter of 2023. The company reported earnings per share of $0.15 but missed estimates by $0.11. The company’s revenue for the quarter amounted to $13.14 billion, down 2.63% year over year and fell short of expectations by $493.27 million.
The food processing group’s profits are struggling and therefore, in an attempt to cut costs and enhance capacity utilization, Tyson Foods, Inc. (NYSE:TSN) has been considering selling certain assets. On August 17, Bloomberg reported that the company might be divesting its business in China due to decreasing demand and income levels in the region. Earlier in 2023, the company also announced plans to close four chicken facilities in the US by 2024.
Another major beef market player is Hormel Foods Corporation (NYSE:HRL). It is based in the United States and operates in 80 different countries. It provides beef, chicken, pork, packaged and specialty food products. On June 1, the company reported earnings for the second quarter of 2023. The company reported earnings per share of $0.40, beating estimates by $0.01. The company’s revenue for the quarter amounted to $2.98 billion, down 3.84% year over year and short of expectations by $91.45 million. Issues such as supply chain disruption, falling consumer demand due to inflation, and increasing holding costs for inventory led to this decline in quarterly sales.
BRF S.A. (NYSE:BRFS), is a leading food processing company that has multiple portfolios, beef being one of them. The company closely monitors its suppliers from which it sources beef products. More than 50 factories of BRF S.A. (NYSE:BRFS) are located in eight countries namely Argentina, Brazil, United Arab Emirates, Netherlands, Malaysia, United Kingdom, Thailand, and Turkey. The company has also been focusing on strengthening its position in local markets. On August 2, Reuters reported that BRF S.A. (NYSE:BRFS) has entered into a joint venture with the Saudi Halal Products Development Company, considering the country’s demand for poultry and the halal consumption pattern.
What’s Happening in the Industry?
Beef has been hitting its near-record high price around the world, affecting all stakeholders, from cattle owners to meat processors to the general consumer. In the United States, these livestock producers are currently facing drought conditions due to which they have reduced their supplies to the market. Since supply has been low, meat processors tend to buy meat at higher prices as well. Customers who get to see these high prices in supermarkets end up resorting to alternatives such as Chicken or Turkey. Another reason for not buying beef is that customers do not get to find the type of beef they are looking for since that beef is subject to a supply constraint and is simply not in the market.
On August 26, CTV reported the grim agricultural conditions in the US where cattle farmers have been deprived of enough water and feed for their animals. Beef companies in Canada have justified these all-time high beef prices by concluding that they have to pay a high cost for cattle feed and grains.
On August 10, CNN Business reported that beef processors like Tyson Foods, Inc. (NYSE:TSN) reported an increased price for beef as compared to other products like pork or chicken in July. The high beef prices were also confirmed by the Bureau of Labor Statistics. Beef and veal prices from June to July went up by 2.4%, with an increase in the price for both uncooked and ground beef.
As a potential alternative to beef and meat products, plant-based meat is a comparatively new phenomenon. It refers to products made from plants which could be an alternative to meat. It is made by processing proteins from plants to replicate the original meat taste. Although this kind of meat is a known choice among vegans, it is not everybody’s go-to choice among meat products.
On March 17, ArabianBusiness reported a development in this market as the IFFCO Group integrated its first ever plant-based meat factory in Dubai which will be providing plant-based meat full of local Middle Eastern flavors.
On August 25, Mena FN reported some concerns regarding plant-based meat. While some people question whether this kind of meat is as nutritious as conventional meat, other conservative buyers do not even consider testing it. Despite these concerns, the plant-based meat market might have a long way to go but still targets products to not just the vegan niche but also the mainstream customers.
The Impact of the Russia-Ukraine War
The Russia-Ukraine war which broke out in 2022 had a detrimental impact on the global beef industry. Ukraine is said to be one of the largest producers of beef and poultry. With cattle farms destroyed by Russia, Ukraine experienced a drastic reduction in its domestic supplies. Exports from Ukraine, which used to be the eighth largest global poultry producer, got restricted and its export market crashed. The markets most hit by this war include Asia, Africa, and EU countries. Thus, the prices went up as the supplies shrank for agricultural products such as beef, poultry, and wheat.
Now that we have taken a look at the global beef industry and what’s currently happening in the space, let’s take a look at the 25 biggest beef producing countries in the world.
Copyright: andreadonetti / 123RF Stock Photo
Methodology
In order to formulate a list of the 25 biggest beef producing countries in the world, we sourced data from the official database of USDA FAS. The United States Department of Agriculture, Foreign Agriculture Service (USDA FAS) publishes statistics for US agriculture and other countries. We accessed the ‘Production, Supply and Distribution’ database and used the customized commodity query from where we selected ‘beef and veal’ as our commodity. Please note that veal is a kind of beef that comes from calves. However, it was really challenging to find data for the European Union. We used the official European Commission’s beef production database to find data for all EU countries. We did not have to do any additional calculations in terms of units as 1 metric ton equals to ‘1 metric ton carcass weight equivalent’. Thus, the metric used was production quantity, expressed in Metric Tonnes Carcass Weight Equivalent (MT CWE). Carcass Weight Equivalent is the weight of an animal after slaughter and removal of internal organs, head, and skin. The extracted production data is from 2023. Finally, we ranked the countries in ascending order of their production quantities of beef, as follows:
25 Biggest Beef Producing Countries in the World
25. The Netherlands
Production in Metric Tonnes Carcass Weight Equivalent: 177,000
The Netherlands is one of the countries qualifying as the biggest beef producing nation worldwide. Despite its small land mass, it is a major exporter of meat including beef. It also has the highest density of livestock in Europe. The government has been trying to reduce greenhouse gas emissions from livestock by reducing animal herds. In 2023, the country produced 177,000 metric tonnes carcass weight equivalent of beef.
24. Poland
Production in Metric Tonnes Carcass Weight Equivalent: 221,000
Poland is another leading country in terms of beef production. It is also one of the biggest exporters of poultry in the European Union. The beef produced is enough for the locals as the consumption rates are not very high. In 2023, Poland produced 221,000 metric tonnes carcass weight equivalent of beef.
23. Italy
Production in Metric Tonnes Carcass Weight Equivalent: 238,000
Another top global producer of beef is Italy. The beef sector also generates a lot of revenue for the Italian economy. The most popular species raised for beef production in Italy is Chianina. In 2023, the country produced 238,000 metric tonnes carcass weight equivalent of beef.
22. Spain
Production in Metric Tonnes Carcass Weight Equivalent: 281,000
Spain is a big producer of beef in the European Union. The country has many different native beef species. Having a sustainable livestock sector, Spain focuses on exports of beef to position itself well in the international beef market. In 2023, the country produced 281,000 metric tonnes carcass weight equivalent of beef.
21. Ireland
Production in Metric Tonnes Carcass Weight Equivalent: 290,000
Ireland also has its place in the global beef market. Beef makes up a major portion of the food exports for Ireland, contributing to its total agricultural output. Other than supplying beef to the rest of the EU countries, the UK remains a significant export destination for Ireland. In 2023, the country produced 290,000 metric tonnes carcass weight equivalent of beef.
20. South Korea
Production in Metric Tonnes Carcass Weight Equivalent: 360,000
In South Korea, beef accounts for a major portion of the overall meat production. Hanwoo, an expensive and native cattle breed, is commonly raised for beef production. In 2023, the country produced 360,000 metric tonnes carcass weight equivalent of beef, ranking itself as one of the biggest beef producing countries in the world.
19. Germany
Production in Metric Tonnes Carcass Weight Equivalent: 403,000
Beef in Germany comes from both culled cows and young bulls. Some beef-producing German regions include Bavaria, North Rhine-Westphalia and Lower Saxony. In 2023, the country produced 403,000 metric tonnes carcass weight equivalent of beef, becoming one of the top beef producing countries in the world.
Some prominent players in the global beef industry include Tyson Foods, Inc. (NYSE:TSN), Hormel Foods Corporation (NYSE:HRL) and BRF S.A. (NYSE:BRFS).
18. Egypt
Production in Metric Tonnes Carcass Weight Equivalent: 425,000
Egypt is another known name in the beef market. Buffaloes are reared and fattened whenever feed is available for beef production. The country produced 425,000 metric tonnes carcass weight equivalent of beef in 2023.
17. Japan
Production in Metric Tonnes Carcass Weight Equivalent: 510,000
Japan serves to be one of the biggest beef producing nations in the world. The most common breed used for beef production is Japanese Black cattle. The native farmers supply a high-nutrition diet for the fattening of the cattle. It produced 510,000 metric tonnes carcass weight equivalent of beef in 2023.
16. Paraguay
Production in Metric Tonnes Carcass Weight Equivalent: 550,000
The beef sector in Paraguay is flourishing. Although beef produced there fulfills the domestic demand, a substantial portion of it is exported. In 2023, Paraguay produced 550,000 metric tonnes carcass weight equivalent of beef thereby becoming one of the largest beef producers in the world.
15. Uruguay
Production in Metric Tonnes Carcass Weight Equivalent: 590,000
Beef is one of the most produced commodities in Uruguay. It has an export-oriented beef market and hence the high-quality beef is traded in many countries around the world. The country produced 590,000 metric tonnes carcass weight equivalent of beef in 2023.
14. France
Production in Metric Tonnes Carcass Weight Equivalent: 662,000
France is another prominent beef producer in the European Union. Popular French beef producing breeds include Charolais, Limousin and Blonde d’Aquitaine. In 2023, the country produced 662,000 metric tonnes carcass weight equivalent of beef, making it one of the top beef producing countries in the world.
13. Columbia
Production in Metric Tonnes Carcass Weight Equivalent: 725,000
A major part of the agricultural land in Columbia is used for cattle production. Beef is the most produced food commodity. The country is one of the largest beef producing countries and produced 725,000 metric tonnes carcass weight equivalent of beef in 2023.
12. New Zealand
Production in Metric Tonnes Carcass Weight Equivalent: 740,000
The list of the biggest beef producing countries in the world also includes New Zealand. Beef is a significant part of the country’s agricultural economy, leading to exports. The country produced 740,000 metric tonnes carcass weight equivalent of beef in 2023.
11. United Kingdom
Production in Metric Tonnes Carcass Weight Equivalent: 905,000
The United Kingdom is another known country in the global beef industry. Holstein-Friesian, Sussex and Hereford are among known beef species. In 2023, the country produced 905,000 metric tonnes carcass weight equivalent of beef.
10. South Africa
Production in Metric Tonnes Carcass Weight Equivalent: 1 million
South Africa qualifies as one of the biggest beef producing countries in the world. Some of the known beef breeds include Afrikaner, Ankole and Bonsmara. In 2023, the country produced 1 million metric tonnes carcass weight equivalent of beef.
9. Russia
Production in Metric Tonnes Carcass Weight Equivalent: 1.3 million
The Russian Federation is another known name in the global beef industry. In 2023, Russia produced 1.3 million metric tonnes carcass weight equivalent of beef, making it one of the biggest beef producing countries.
Investors who wish to increase their exposure to the beef industry can look up Tyson Foods, Inc. (NYSE:TSN), Hormel Foods Corporation (NYSE:HRL) and BRF S.A. (NYSE:BRFS).
8. Canada
Production in Metric Tonnes Carcass Weight Equivalent: 1.35 million
Another significant producer of beef in the global market is Canada. It holds beef farms in abundance. Some common beef species include Hereford, Charolais, Limousin, and Simmental. The country produced 1.35 million metric tonnes carcass weight equivalent of beef in 2023.
7. Australia
Production in Metric Tonnes Carcass Weight Equivalent: 2.06 million
The beef industry in Australia contributes heavily to its economy. A major portion of the off-farm sales in livestock comes from the Australian states, New South Wales and Queensland. The country is one of the largest beef exporters in the world. Australia produced 2.06 million metric tonnes carcass weight equivalent of beef in 2023.
6. Mexico
Production in Metric Tonnes Carcass Weight Equivalent: 2.2 million
Mexico is one of the world’s biggest beef producers. The country also engages in the export of beef. Mexico produced 2.2 million metric tonnes carcass weight equivalent of beef in 2023.
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Disclosure: None. Top 25 Biggest Beef Producing Countries in the World is originally published on Insider Monkey.
