Beef supplies remain tight, but prices have actually tapered a bit. Agribusiness financial company Rabobank has issued a new report on the global beef industry and says that that despite tight global cattle and beef supplies, prices tempered from their third quarter.

Rabobank says that a big question heading into 2015 with such a finely balanced market is: if Australian export rates decrease and herds in Mexico and Canada continue to be run down by the U.S., have prices reached a new norm or do they still have room to rise?

“The U.S. continues to be the driver in the global beef market with constrained supply and strong demand keeping prices high. A recent strengthening in the U.S. economy and dollar will support continued imports to the U.S., however we are watching a drop in the oil price and depreciation of the Russian ruble given Russia’s status as the world’s largest beef importer,” explains Rabobank analyst Angus Gidley-Baird.

On a regional level, demand for Brazilian and Australian export beef remains high, while Europe separates into the premium and ground beef market with divergent price developments, with prime beef remaining elevated in 2015. China beef prices are expected to remain stable.

Closer to home, 2015 could be a critical year for Canada, as the country needs to determine whether it starts rebuilding or further downsizing its industry. In Mexico, low cattle availability continues to cause constraints, although this is partially offset by increased cattle weights due to lower feed costs and better pastures.