February 24, 2005

US to source more Australian beef

US agriculture officials say there'll be looking for more Australian beef, once the border with Canada reopens.

The USDA's latest cattle and beef forecast says resumed trade with Canada won't hurt the US cattle industry, but will lead to new market opportunities for others.

2005 US beef production is expected to fall slightly from an earlier forecast, with a rule change that keeps out meat from higher-risk older Canadian cattle, but not younger ones.

Analysts expect that Canada would slaughter a greater proportion of cows and bulls over 30 months of age, and then export the beef to the US.

The US says it will now have to turn to Australia, New Zealand and Uruguay to replace the processing grade beef it won't get from older, grass-fed animals in Canada.