Q：What are beef prices like in major Chinese wholesales markets now? And what will the prices of spare ribs, flank, pieces and shank turn out to be?
A： Now the market still seems positive. Beef traders hold confidence in the market. Firstly, the current goods in the market are mainly new from this year hence the insufficient supply. Secondly, global inflation, economic downturn, natural disasters such as drought afflicted Europe and the US and flood affecting China have created volatility in the international community. Regional conflicts have exacerbated the situation. Therefore, we believe beef prices are likely to keep its slight increase trend before October’s National Holiday.
Past experience tells us that every year there’ll be one or two products that are extremely popular. This year, these most favored products are rump, topside and ribs. Ribs in particular performs extremely well this year. Rib prices nearly surpassed that of flank.
These products often come in small packages and are widely sold on live-stream channels directly to consumers. This is a very efficient way to sell. Sometimes tens of thousands of orders will be sold within one day.
We found that supermarkets are selling less and less meat nowadays whereas online channels and selective butcheries are selling more and more niche beef products.
Q：Recently, vessels are arriving at ports more punctually than before. Amidst the recovery of logistics by sea, will there be more cargoes and goods arriving at ports?
A： No exactly. The arrival punctuality rate of logistics by sea doesn’t necessarily affect Chinese domestic beef market. The arrival punctuality rate of major ocean carriage companies such as Maersk have improved a lot recently. Meanwhile, countries are adjusting to this situation with similar measures. This year’s beef market is expected to increase in volume by 10 to 20 percent compared with last year. But this degree of increase will not exert substantial impact on the overall market.