Fluctuations in beef raw material prices are putting downward pressure on costs for downstream manufacturing companies.
Release time:
2025-12-24
Since 2024, domestic beef raw material prices have experienced significant fluctuations, putting sustained pressure on the costs of downstream manufacturing enterprises.
Since 2024, domestic beef raw material prices have experienced significant fluctuations, putting sustained pressure on the costs of downstream manufacturing enterprises. In 2023, China’s beef production reached 7.53 million tons, a year-on-year increase of 4.8%. Coupled with a surge in imports to 1.44 million tons, market supply far exceeded the growth rate of demand, leading to a continuous decline in prices. For instance, in June 2023, the average price of fattened cattle nationwide fell to 25.39 yuan per kilogram, hitting a new low since November 2017. Some farmers suffered losses exceeding 6,000 yuan per head of cattle. Although this downward price trend reversed in 2025—driven by factors such as low global inventories and tighter import policies—the live cattle prices in China’s major producing regions rebounded to between 13.6 and 14.9 yuan per jin by November 2025, representing a 20% year-on-year increase. However, regional disparities remained pronounced, with the price gap widening between the northern major producing areas and the southern consumption regions.
Price fluctuations are directly passed on to downstream processing enterprises. Take beef ball production as an example: the cost of pure beef ingredients accounts for over 50%. If the beef content is ≥80%, the raw material cost alone approaches 35 yuan per jin. Adding in labor costs, cold-chain logistics, and other expenses, the final retail price must exceed 50 yuan per jin just to maintain profitability. To balance costs with market demands, some companies have adopted mixed formulations such as “beef plus beef tendon” or “beef plus chicken,” employing a tiered product strategy to cater to different consumer segments. This industry reality compels companies to strengthen supply-chain management by scaling up procurement, optimizing production processes, and reducing non-material costs. At the same time, they are exploring high-end positioning strategies to enhance the added value of their products.
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