January 19, 2011

US beef exports continue to rise

US beef exports continued its increase during November 2010, with a 25% on-year jump in quantities, to 97,772 tonnes carcase weight (cwt).

For January to November 2010, US beef shipments were up 22% on the previous year, to 942,188 tonnes cwt - closing in on the pre-BSE levels of 2003 (984,376 tonnes cwt).

The weak US dollar has been the main driver of rising exports in 2010, assisted by a slight increase in US beef production and improving economic conditions and demand from some markets. Exports in 2010 were up to Japan (up 27%), Canada (up 4%) and Korea (up 106%).

November exports to Mexico, the US largest market, lifted 12% on-year, to 21,287 tonnes cwt. This signifies a positive turnaround in the market, which struggled for much of 2010 due to a weak Mexican peso, tough economic conditions and a reported drop in patronage at food service outlets.

The latest USDA forecast is for US beef exports in 2011 to remain relatively unchanged, at 1.04 million tonnes cwt, amid a predicted drop in total US beef production. However, in the first quarter of 2011, US beef production looks like being slightly higher than in 2010, assisted by increased cattle placements into US feedlots during the final quarter of the year.