Global meat market feels the challenges of coronavirus

Posted by Marina

The global meat market is already feeling the challenges of coronavirus, despite the resilience of commodities in the food segment, according to analysts at INTL FCStone and Rabobank. In this scenario, a possible relief in this market, according to the specialized portal of CarneTec Brasil, should be the return of activities in China.

“The expectation of a return to normal activities in China, after a period of confinement and a reduction in economic and logistical activities to contain the coronavirus, brings relief to large exporting slaughterhouses. But the meat industry is also aware of the potential impacts of reduced consumption in local markets in the short and medium term ”, says the portal.

According to INTL FCStone analysts in a report released last week, “the fall in the purchasing power of the final consumer, in the midst of a possible economic recession, stimulates alternative sources to beef, such as pork and chicken, which are cheaper".

"The evolution of the virus also challenges and modifies the dynamics of the meat trade, with the forecast pointing to an increase in household stocks, while the wholesale and restaurants will further reduce their sales scales", they complete.

Regarding chicken meat, Rabobank's perspective will be materially affected by the coronavirus pandemic, but the competitiveness of this protein in relation to other more expensive options favors the product. "Although the outlook is still moderately positive for most markets, coronavirus is adding significant uncertainty and is now expected to cause a global economic slowdown," he concludes.

Source: Agrolink