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.
For information please contact the report’s author:
Pan Chen Jun, chenjun.pan@Rabobank.com +852 2103 2430
For other information, please contact Rabobank press office:
Madelon.Kaspers@Rabobank.com +31 610887244
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Feeding nine billion people requires a vision and solutions that do not stop at the gate of a farm or the turnstiles of a supermarket. Accordingly, the Banking for Food vision of Rabobank, encompasses all links in the food chains, in and outside the Netherlands: from farmers and horticulturists and their suppliers to businesses processing agricultural products and transport businesses and supermarket chains. You can read our entire vision here.