February 18, 2008

 

US '07 beef export volume up 18 percent; sales also up by 28 percent

 

 

US beef exports in 2007 posted an 18 percent gain in volume from the previous year, while the sales value grew 28 percent.

 

In volume and sales value, last year was the third consecutive growth period for US beef exports following a sharp decline in 2004. The US' first case of bovine spongiform encephalopathy - BSE, known commonly as "mad-cow disease" - was discovered in late December 2003, which resulted in import bans on US beef by several of the nation's leading international customers. Some countries still do not allow bone-in beef imports.

 

The volume of beef and beef variety meats sold internationally last year was 771,196 metric tonnes, valued at nearly US$2.618 billion. The 2007 volume was up 140 percent from 2004 and the value grew by 224 percent. However, the 2007 volume was just 60 percent of the record high hit in 2000.

 

The largest gains in export volume last year were made to Canada at nearly 36,000 more tonnes than the previous year, Japan with a gain of 33,000 tonnes, and the Republic of Korea with nearly 25,000 tonnes. Mexico, the largest customer for beef and beef variety meats, showed a 3 percent decline from a year earlier.

 

Erin Daley, manager of research and analysis at the US Meat Export Federation, in a USMEF release late Thursday (February 14) said the weak US dollar is enhancing the competitiveness of US beef.

 

Wholesale beef prices begin the week on a strong note and climbed Monday and Tuesday. However, choice beef prices slipped a bit Wednesday, then fell further Thursday and Friday. Select beef prices climbed each day through Thursday but declined Friday.

 

Some analysts and brokers predict that boxed beef prices could soften over the next couple of weeks amid competition from the large pork and chicken production.

 

CATTLE/HOG SLAUGHTERS

 

The USDA estimated last week's cattle slaughter at 624,000 head, compared with 620,000 a week ago and 620,000 a year ago. Year-to-date cattle slaughter is down 1.1 percent.

 

This week's hog  slaughter was estimated at 2.234 million head, compared with 2.210 million last week and 2.007 million a year ago. Year-to-date hog slaughter is up 10.0% from a year ago.

 

TOTAL MEAT PRODUCTION

 

The USDA estimated total beef, pork and lamb production last week at 943.4 million pounds. Previous week's output was 936.3 million, and the year-ago figure was 885.3 million pounds.

 

Broiler/fryer slaughter last week was estimated at 163.839 million head, compared with 165.446 million a week ago and 158.852 million a year ago.