In August, Mexico experienced its highest total beef imports of the year, reaching 19,248 MT, which is a 30.6 per cent increase compared to the same period last year.

The total value of these imports amounted to US$151.7 million. From January to August, the accumulated total of beef imports reached 127,939 mt valued at US$1 billion. Specifically for the month of August, Canadian beef exports to Mexico amounted to 2,271 MT valued at US$17.9 million. The total accumulated Canadian beef exports for 2023 reached 18,138 MT, showing a significant growth of 33 per cent compared to the same period last year. Out of the total exports from January to August, muscle cuts accounted for 86.5 per cent (15,690 MT), while offals represented 13.5 per cent (2,356 MT). The total value of these shipments reached US$144.4 million, which is an 18 per cent increase year-over-year.

Lower cattle prices are forecasted to increase beef demand in the coming months for local and imported beef. The U.S. dominated the beef import market from Jan-Aug, with 90,252 MT, valued at US$754.4 million. Muscle meats accounted for 65.7 per cent (59,358 MT), while variety meats made up 34.2 per cent (28,358 MT) of their imports. Mexico also imported 117 MT of beef from Argentina, worth US$1.66 million, and 283 MT from Brazil, valued at US$1.2 million, from Mar-Aug. Additionally, 77 MT of beef from Chile, 218 MT from Spain, 20 MT from Japan, 16,807 MT from Nicaragua valued at US$88.6 million, eight MT from NZ, five MT from Panama, and 64 MT from Uruguay.

Retail demand holds up despite inflation
Total consumption of beef in Mexico is expected to increase to meet the growing demand within the country. August 2023 food price inflation shows corn with the highest increase (10 per cent), followed by eggs (six per cent), pork (3.5 per cent), and beef (2.5 per cent). While inflation is projected to moderate, pork and beef consumption is anticipated to slightly increase for the remainder of 2023 and 2024.
The transgenic corn dispute between Mexico and the US could raise prices of key foods. Inflationary pressures persist, with an 8.2 per cent annual variation in the basic goods basket. Livestock products in the basic basket increased by 4.3 per cent year-over-year, but slightly decreased by 0.5 per cent compared to July.

Foodservice, hospitality sectors rebound
The hospitality sector in Mexico has fully recovered in 2023, with some segments experiencing double-digit growth. The industry is growing at a rate of over five per cent annually, generating over two million jobs. The hotel industry is witnessing a resurgence and the number of hotel rooms is expected to increase by five per cent. The restaurant industry, with two million businesses and 10 million jobs, is projected to generate higher sales for the remainder of 2023, with the fast-food segment maintaining a significant share.

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Reduced domestic production is limiting exports and encouraging imports. Beef import volumes rebounded eight per cent in July to be the fourth-highest July volume going back to 2002.

According to a recent survey conducted by Purdue University, most Americans indicated that beef is superior to either plant-based or lab-grown proteins from several standpoints, including taste, nutrition and environmental impact. A survey conducted by the Kansas State Meat Demand Monitor found that approximately 37 per cent of physically active individuals are intentionally consuming protein to help with their fitness.

The Consumer Sentiment Index in September fell to 67.7, down 1.8 from August. Consumer sentiment has steadily turned negative over the summer. The inflation rate for August 2023 is pegged at 3.7 per cent, the second consecutive increase in inflation this year. Increases in oil prices and transportation have driven inflation. Core inflation rate (excluding food and energy) decreased 0.4 per cent to 4.3 per cent, in line with market expectations.

Retail prices jump in July
The August all-fresh retail beef price was steady with the month prior at US$7.82/lb (US$17.24/kg) and is up 6.8 per cent year-over-year. A significant jump occurred in July, when all-fresh beef prices climbed three per cent to US$7.79/lb. The latest Kansas State Meat Demand Monitor shows that retail demand was largely softer between July and August. Retail demand for ground beef, pork chops, bacon, and chicken breasts were down one to four per cent. The exception was ribeye steak, jumping five per cent between June and July and another two per cent between July and August.

Retail beef prices (average of all cuts) in August were steady with July and up six per cent from August 2022 to average US$7.32/lb (US$16.14/lb). In contrast, retail pork prices increased two per cent to US$10.75/kg, and chicken retail prices increased one per cent to US$4.86/kg between July and August. Retail pork prices are steady from a year ago; retail chicken prices have fallen three per cent.

Meat price ratios affect consumers at the grocery store, as most consumers see beef, pork and chicken as direct substitutes. The beef-to-pork ratio was 1.5:1 in August. The beef-to-chicken ratio was 3.32:1. Since August 2022, the beef-to-pork ratio has been in a tight 1.38-1.53:1. The beef-to-chicken ratio has been in a wider 3.01-3.36:1. Retail price ratios are near the high end of the range but remain relatively stable.

Demand rises in food service sector
Eating and drinking places saw solid growth in August, as consumers remained positive. Total nominal sales increased 0.3 per cent, to be the sixth consecutive month of sales growth.

Consumers indicated that they aren’t eating out, or ordering takeout or delivery as often as they would like, suggesting at least moderate pent-up demand among consumers.

The Kansas State Meat Demand Monitor showed that demand increased for all five meat protein products reported on. For away-from-home meals, consumers chose to eat on the run for breakfast and lunch; but chose to enjoy their dinner at a more leisurely pace. Quick service accounted for 39 per cent of breakfast meals in August. Quick service was also the top choice for lunch meals at 27 per cent. Casual dining accounted for the largest number of dinner meals, at 32 per cent of all meals, steady with July.

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November 2022 year-to-date beef imports into Canada of 152,712 tonnes valued at $1.5 billion were up five per cent in volume and up 19 per cent in value year-over-year. Year-to-date import volumes declined from New Zealand (-15 per cent), Uruguay (-29 per cent) and Argentina (-78 per cent), but increased from the U.S. (up four per cent), EU 27 (+13 per cent), the U.K. (+63 per cent), Australia (+37 per cent), Mexico (up nine per cent) and Brazil (+61 per cent).

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The average beef retail price has trended lower January to October 2022 and followed the steady decline in beef wholesale values throughout the year. The ribeye and tenderloin were flagged as holiday favourites in October and November, supporting a typical holiday rally in wholesale beef prices.

Food service sales in Canada continued to improve quarter after quarter despite the many pressure points applied to pocketbooks this year. Full service and limited service sales regained equal market share in the third quarter of 2022 for the first time since 2019.

Higher beef production in 2022 bolstered historically strong beef exports even as the proportion of beef exported declined slightly this year. That means that more Canadian beef supplies are projected to have stayed in Canada in 2022 compared with 2021. Capacity constraints in Canada spurred a slight uptick in beef imports, particularly from non-traditional suppliers.

Canada’s resource sector supported third-quarter 2022 economic growth and is likely to lend more support under a depreciating Canadian dollar. Despite chilling headwinds moving into 2023, there are indicators that Canadian consumption may remain insulated.

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U.S. imports of Canadian beef in September 2022 were up 4.3 per cent from September 2021 and up 17 per cent from the five-year average for September. September imports were the largest monthly volumes since October 2021. Import values in September 2022 were down 6.9 per cent from September 2021, when there was unusually strong demand for middle meats that supported import prices. Although lower year-over-year, import values in September 2022 were up 45.1 per cent from the five-year average.

In October 2022, beef inventories in cold storage declined 3.1 per cent from September 2022 and deviated from the five-year trend of increasing October inventories. The drawdown occurred despite steady cutout values and higher slaughter, a sign of continued, steady demand for beef. Strong domestic slaughter — including higher slaughter volumes of mature cattle due to drought — has pressured import volumes.

Ribeye and ground beef hold steady at retail
The U.S. all-fresh beef price declined one per cent from September to October 2022 to US$7.25/lb (US$15.98/kg). The move marks the largest month-over-month price decline since November to December 2021 (-2.3 per cent) and a downward deviation from an otherwise steady year for all-fresh beef prices. In October 2022, the all-fresh retail beef price was 4.0 per cent lower than in October 2021 and the lowest since August 2021, but remained 17.3 per cent higher than the five-year average for October.

The Kansas State Meat Demand Monitor showed that consumers were willing to pay higher retail prices for all proteins from September to October 2022. Retail remains the lower-cost option for consumers under economic pressure when compared to foodservice channels. Market share for ribeye and ground beef remained steady month-over-month whereas a one per cent increase in market share was reported for pork chops and chicken breasts. The largest increase in what consumers were willing to pay more for was rice and beans. The monitor also reported changes in consumer behaviour at retail, with 30 per cent of consumers reducing the number of meat items they bought, 24 per cent purchasing smaller packages and 16 per cent buying different cuts.

Foodservice customers unwilling to pay more
Conversely, at foodservice, the Kansas State Meat Demand Monitor reported a decline in willingness to pay for all proteins from September to October 2022. The report showed a one per cent month-over-month decline in market share for both ribeye and chicken breast at foodservice. Beef hamburger market share at food service remained steady month-over-month, with a one per cent reported increase in market share for plant-based patties and shrimp. Lunch was the main outlet for food service sales among those surveyed in the monitor, with just 49 per cent of prior-day lunchtime meals consumed at home, versus 75 per cent at breakfast and 65 per cent at dinner. Quick-service outlets maintain the largest share of breakfast, lunch and dinner.

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Korea’s total beef imports in September 2022 were 48,727 tonnes, up 12.7 per cent year-over-year but down 30.4 per cent from the previous month. Korea’s beef imports from Canada were 882 tonnes in September 2022, up 26 per cent year-over-year but down 82.4 per cent from the previous month, which was exceptionally high as importers cleared customs in greater quantities than in normal months, benefiting from the zero per cent tariff-rate quota. Korea’s total beef imports from Canada in 2022 from January to September were 16,726 tonnes, up 131.1 per cent year-over-year. Ribs were the leading exporting cut, representing 59 per cent of the total volume.

Importers and wholesalers on standby

There are rumours that the zero per cent tariff-rate quota might be implemented again. As the government is considering reintroducing the zero per cent tariff-rate quota for beef, many importers and wholesalers are in standby mode, waiting for the government’s decision. Importers of Canadian beef needed to pay 18.6 per cent import duty in 2022 and will pay 16 per cent in 2023.

Importers are somewhat concerned as the export volume of U.S. beef is expected to decline by around 15 per cent in 2023, which may result in higher prices. U.S. beef accounts for around 50 per cent of Korea’s total beef imports. As a result, more importers might turn to Canada next year.

South Korea’s new daily COVID cases remained at around 30,000 at the end of October. Travellers to Korea are no longer required to take a PCR test within 24 hours of arrival and don’t need to show a negative test result pre-departure. Although masks are still required in indoor spaces and on public transportation, they are no longer required outdoors.

Retailers and wholesalers hedges against inflation

The inflation rate was 5.6 per cent in September, year-over-year, slightly lower than 5.7 per cent in August and 6.3 per cent in July. Prices of imported beef and pork continued to increase, 12.7 per cent and 4.1 per cent year-over-year, respectively. As retailers and wholesalers are concerned that imported beef prices may continue to rise, there currently is a tendency to purchase more quantities than necessary. Major retailers, including online players, continue to hold discount events for imported beef, including Canadian short ribs and short plate.

Inflation doesn’t dampen restaurant demand

In September, consumer prices for dining out rose nine per cent year-over-year, the highest in 30 years. Prices of hamburger and galbi-tang (rib soup) at restaurants rose 13.5 per cent and 12.9 per cent, year-over-year, respectively. Demand for both chilled and frozen imported beef, including steak cuts, short ribs, back ribs, bolar blade, and brisket, from foodservice operators and large catering companies has been stable. As the autumn camping season begins, sales of home meal replacement products such as steaks and soups have been increasing.

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South Korea banned Canadian beef imports from December of 2021 until January 19, 2022, due to an atypical BSE case found in an Alberta cow. January volumes were down 41 per cent from last year but rebounded strongly in February. March and April then both saw record-high numbers of over 3,000 tonnes. Consequently, in the first four months, volumes of 9,333 tonnes valued at $105 million are up 184 per cent in volume and 360 per cent in value from the same period in 2021. Exports to South Korea for the first four months of the year now represent 5.7 per cent of total exports, up 3.1 per cent from the end of 2021.

On January 1, 2022, the import tariff applied in South Korea to Canadian beef imports under the Canada-Korea Free Trade Agreement fell to 18.6 per cent. Under the agreement, tariffs drop each year by 2.67 per cent, with all tariffs and safeguard duties on Canadian beef products to vanish by 2030.

In the first two months of the year, COVID-19 cases were still very high, and restrictions were tight. By mid-April, many restrictions lifted as daily case numbers declined. Food service, catering and retails opened fully in April and there are high hopes sales will recover as marketing programs run again. This recovery has already been seen in the export numbers so far.

Canada Beef currently provides support for marketing and promotional products in South Korea to help build demand. These promotional events in supermarkets and food services have sparked interest among Korean consumers to cook high-quality red meat at home. Currently, South Korea consumes 1.4 per cent of the world’s beef.

Other big suppliers to South Korea include the U.S., whose exports to Korea are up six per cent in volume (95, 513 tonnes); and Australia, whose exports to South Korea of 47,510 tonnes were down six per cent year to date, as their total exports are down eight per cent year-over-year as well.

Chuck and rib continue to follow trends driven by traditional foodservice demand and remain the top two primals exported to South Korea. Chuck has gained a share over rib. Canadian beef isn’t carried in any major retail stores, as they mostly sell locally grown Korean, U.S. or Australian beef. The beef that is imported from Canada is consumed at galbi (grilled short rib) restaurants and/or galbi-tang (short/back rib soup) restaurants.

Exports by primal to South Korea January to April 2022:

• Chuck cuts at 3,561 tonnes valued at $43.7 million were up 177 per cent in volume and up 418 per cent in value. Chuck cuts represent 38 per cent of total volume to South Korea.
• Ribs cuts at 3,211 tonnes valued at $37.8 million were up 111 per cent in volume and up 251 per cent in value from the same period in 2021. Rib cuts represent 34 per cent of total volume.
• Offal cuts at 1,883 tonnes valued at $14.7 million were down 20 per cent in volume and up 2,132 per cent in value from the same period in 2021. Offal cuts represent 20 per cent of South Korea.
• Flank/plate cuts at 452 tonnes valued at $6.4 million were up 654 per cent in volume and up 1,083 per cent in value. Flank/plate cuts represent five per cent of total volume to South Korea.
• Loin cuts at 224 tonnes valued at $2.3 million were up as there were zero exports of loin to South Korea in 2021. Loin cuts represent two per cent of total volume to South Korea.
• Brisket and other cuts were down 100 per cent since there has been zero product exported in 2022.
• There were zero hip cuts in 2022.

First quarter exports strong for Canadian beef

Overall, Canadian beef exports in April 2022 hit 44,172 tonnes and were valued at $396 million. This is up six per cent in volume and 20 per cent in value from April 2021. Federally inspected slaughter numbers of 251,091 head were down one per cent from April 2021. Trends over the last four months have been consistent with the first quarter of 2021 and the five-year average. Monthly exports continue to strengthen as we head into the summer months.

From January to April 2022, beef exports were up nine per cent in volume and 34 per cent per cent in value from last year. Year-to-date export volumes increased to the U.S. (10 per cent), Japan (19 per cent), Taiwan (143 per cent), the EU-27 (44 per cent), South Korea (184 per cent), the Middle East and North Africa regions (22 per cent), and South Korea (10 per cent). Export volumes declined to Hong Kong and Macau (-61 per cent), mainland China (-98 per cent), and Southeast Asia (excl. Taiwan) (-2.0 per cent).

Since January, China has banned imports of Canadian beef, but with fears of food shortages in China, trade may resume.

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So far in 2022, the Mexican meat sector reported average price increases of 35 per cent, although some meat products have risen to 300 per cent. Inflation accelerated in May and reached its highest level since 2001 due to the persistent increase in food prices. Inflationary pressures continue and food prices are expected to remain high until starting to decline gradually in the third quarter.  

The high inflation levels in Mexico have forced Mexican families to modify their consumption preferences. Although overall inflation for goods and services in May eased to 7.65 per cent, in central Mexico the cost of the basic food basket increased by 0.5 per cent.

During April 2022, all meat categories experienced record increases of 2.2 per cent in average prices compared to the previous month. Beef and chicken suffered the strongest increases, while pork once again became the most consumed protein due to its lower cost. During the last week of April, retail prices for domestic ground beef were US$6.72/kg, chuck US$9.54/kg, and beef tenderloin at US$21.95/kg, while the price for pork chops was US$5.30/kg, and pork loin was offered at US$5.85/kg.

Low prices push pork imports

Low prices for imported pork continue to increase pork purchase volumes, while high prices of beef and chicken have reduced the imported volume of these two proteins. In May, the volume of chicken imports fell 6.3 per cent, impacted by an 18.8 per cent rise in price. Meanwhile a record 600,000 MT of pork was imported, mostly from the U.S, and driven by a nine per cent drop in price.

Mexico will continue to eliminate tariffs on meat imports to control inflation and avoid price pressures. The federal government seeks to increase the supply of animal protein from other countries with less dependence on the U.S. and Canada, from where 92 per cent of the beef is imported. The drought that is hitting the southern states of the U.S. is forcing ranchers to sell their slaughter-ready cattle to Mexican slaughterhouses at a lower price and reaching historically high figures. This has increased the supply of domestic slaughtered beef and reduced the demand for imported boxed beef.

According to figures from the Mexican Meat Council, Mexico’s accumulated beef imports from all sources Jan to Apr 2022 decreased 17.2 per cent in volume from 2021, but increased two per cent in value due to a 23.1 per cent rise in prices. In Jan to April 2022, beef imports from the U.S. fell 19.7 per cent in volume and one per cent in value compared to the same time period in 2021.

Meanwhile the cumulative volume of Canadian beef imports for the same period fell 11.8 per cent vs. 2021 (6,410 MT), and increased in value by 24 per cent (US$54.6 million). Chilled muscle cuts accounted for 80 per cent of total April Canadian beef imports (1037 MT), while the ratio for variety meats was 14 per cent.

Economic uncertainty dampens food service reopening

As Mexico rode its fifth COVID wave, the food service sector was expected to continue to gradually reopen. The Health Secretariat approved full capacity in closed spaces, with no restrictions at commercial premises, restaurants and public spaces. Sales during Father’s Day were expected to be significant for this sector; however, they are still estimated to be 30 per cent below pre-pandemic periods due to the economic uncertainty spurred by higher prices. Additionally, a decrease in optimism among Mexican consumers is projected to further erode sales.

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As Omicron hits new highs in parts of China, local authorities are trying to adopt pandemic measures that won’t hammer people’s livelihoods. 

However, the worst-affected cities or regions still must adopt partial or total lockdown policies. The epidemic will affect the economy in the short term, especially offline consumption in areas such as tourism and catering.

China imported 314,641 tonnes of beef as of the end of February, which is 22 per cent down from the same period in 2021. This is mainly due to Brazil’s beef volume (-68 per cent) still recovering from the resumption of trade in late 2021. With beef prices staying high, the total import value was up six per cent compared with 2021.

U.S. beef volume continues to grow with a 92 per cent increase in January and February, vs. 2021. Meanwhile Aussie beef volumes were flat with 2021. Canadian beef volume dropped 19 per cent compared with 2021, due to the continued import suspensions.   

Hong Kong’s fifth COVID wave is still ongoing, but the numbers of confirmed cases are dropping. While maintaining the strict social distancing policy, the government has lifted flight bans for some countries, reduced quarantine days for overseas travellers and has plans to gradually lift social distancing measures, including the foodservice restrictions.

Given the fifth outbreak’s severe effect on the local economy, in April the government launched the first phase of a coupon program, distributing coupons to Hong Kong residents to help boost local consumption.

Total import beef volumes in Hong Kong declined by 37 per cent to 59,280 tonnes in January and February, compared with the same period in 2021. The decline is mainly due to the economic recession caused by the ongoing impacts of the pandemic as well as high beef prices. Canadian beef volumes were down significantly by 81 per cent while U.S. beef volumes also declined by 63 per cent. 

Omicron pushes retail sales online

Chinese cities heavily affected by the Omicron outbreak, especially those with partial or total lockdown measures in place, saw a surge in retail orders, especially online purchases which increased by two to three times the norm. Demand for vegetables and meat, essential for daily life, is particularly strong. At the same time, logistics and processing are also facing great challenges due to epidemic controls in various regions and the resulting shortage of manpower. Local regulators may also have extra requirements or even restrictions for retailers to sell imported meat.

Hong Kong’s retail sales in February 2022 grew by an average of 30 per cent thanks to social distancing measures that encouraged consumers to eat more often at home. However, the growth of retail sales slowed in late March as the epidemic gradually abated. Online e-commerce traffic reached historic and record highs in February and March. HKTV mall, the largest online platform, saw an 87 per cent increase in the value of transactions in February compared with the previous year. Despite strong demand, a shortage of manpower for beef cutting, packing and logistics may also lead to potential shortages at retail stores. 

Omicron cuts foodservice sales

China’s foodservice sales have been hammered in the worst-hit cities due to restrictions on restaurant dining and catering. Even in regions or cities which have not been heavily affected by the pandemic, foodservice sales have declined as consumers are cautious about eating out and fewer people are travelling. The reduction in foodservice sales has greatly reduced beef sales, leading to slow-moving beef inventories.

In Hong Kong, due to the restrictions on foodservice at the beginning of pandemic, restaurant sales have fallen by about 70 per cent compared to before the outbreak. So far, 3,000 restaurants have been temporarily closed and 400 have shut down completely. Forecasts predict that by the end of April, 7,000 restaurants will have temporarily closed and 2,500 will have shut down completely. With the epidemic gradually easing, the government lifted the restrictions in late April and restaurant operators are seeing a rebound in demand for dine-in service.

Costs rise and sales drop for importers

China’s pandemic control measures in the main ports such as Shanghai and Shenzhen did not suspend port operations. But it did slow things down, causing some cargo accumulation. Cancelled air cargo flights to Shanghai may push freight costs higher, due to airport changes.

As for the suspension of Canadian beef imports, Chinese importers are concerned about the potential risk of inventory shortage and are looking forward to the resumption of trade as soon as possible.

Value, Volume, Price and Market Share % of China’s Beef Imports from Major Suppliers (February 2022, YTD)

Meanwhile in Hong Kong, the manpower shortage for beef processing at suppliers has improved considerably as Omicron has eased. However, due to the foodservice restrictions implemented earlier, restaurant sales are sluggish and beef sales are also slow. Beef importers and distributors are suffering an average 40 per cent sales drop.

Many of Hong Kong’s ingredient suppliers are in trouble as well, with an estimated 10 per cent shutting down their business. As import volumes of food ingredients are also down sharply by around 40 per cent, the industry predicts higher food costs by the time foodservice sales rebound.

Value, Volume, Price and Market Share % of Hong Kong’s Beef Imports from Major Suppliers (February 2022, YTD)

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Due to surging community cases, Taiwan CDC tightened all COVID restrictions, leading to many restaurant cancellations. Food take-out service remains a bright spot and business losses are bearable. Due to the Omicron wave that started in December, and having learned from previous experience, some importers have placed extra orders to handle a sudden surge of market demand. This is reflected in increased import volumes for January, especially for dominant market players such as the U.S. and Australia.

Beef importers have expressed that the beef price has become very tough for their business and the Canadian beef offer price is sometimes higher than other suppliers. Frozen Canadian beef sales remain steady as the foodservice market is slowly opening and demand is expected to gradually return. Chilled Canadian beef sales have been reduced over the last few months due to price competition. 

In January, the total Taiwan beef imports were 10,936 MT in volume, a 3.1 per cent decrease compared with the same month in 2021. However, values increased by 38.6 per cent reaching US $126 million. Canadian beef imports decreased 66 per cent in volume and 52 per cent in value for the same period.

Due to surging prices, the Taiwanese government announced a temporary beef tariff import tax reduction from NT$10/kg to NT$5/kg until the end of April 2022. However, importers indicate this may not help much in stabilizing beef distribution prices as overall lead times, including shipping, is much longer in the beef business. Beef imports to Taiwan continue to experience many delays resulting in longer arrival times for beef sourced from North America. As a result, shelf-life issues for chilled beef continue to be a problem for many importers, retailers and foodservice owners.

Beef retail prices high

Taiwanese retail turnover in January was NT$392.2 billion, the highest for the month over the past years, with an annual increase of 6.4 per cent. Supermarket and hypermarket annual sales increases were 18.4 per cent and 17.1 per cent respectively while e-commerce sales volumes increased by 12.5 per cent.

Because the 2022 lunar new year fell in the first week of February, consumer buying power was concentrated in January including gifts, meals for lunar new year eve and the purchase of essentials for the long holiday.

Beef retail prices remain high. U.S. beef retail prices per kg. in February were US$49.77 for USDA orime ribeye and US$38.74 for USDA choice. Popular cuts like Choice short rib were US$35.54, chuck top blade US$17, shank US$14.19 and rib finger US$15.62. Compared with the same month in 2021, Prime and Choice ribeye cuts increased 57 per cent and 56 per cent respectively while short rib prices increased 49.33 per cent. Chuck top blade prices increased by 70 per cent. 

Foodservice sees shipping delays for North American beef

Taiwan’s foodservice turnover in January reached NTD76.2 billion and had an annual increase of 8.7 per cent. Also benefiting from the lunar new year holiday, purchase power was concentrated in January. Although the epidemic situation worsened in January, which caused cancellations of reservations and in-land travel, food take-out and delivery services remained very active to keep business running and survive the new wave of COVID.

Due to high inflation and price increases of raw materials, many foodservice establishments announced a new wave of menu price increases even while the Taiwanese government has offered tax discounts. And due to shipping delays from North American beef sources, some restaurants have announced they will stop offering beef dishes on their menus until the shipment arrives. Feedback from importers indicates that chilled beef has an even higher risk of being delayed by up to two to four weeks, while frozen beef distribution has not been impacted as much. 

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