March 7, 2008

USDA forecasts 19 percent rise in beef trade on re-entry to markets

The USDA expects beef exports to recover quickly despite the rising meat production costs, as more markets reopen to US beef on global economic growth and weak US dollar.

A 19-percent increase in beef exports this year is projected, although it is still 47 percent below the export volume in 2003, when the industry was still mad-cow free.

Demand for high-quality beef is projected to be strong, with majority of the US exports going to Mexico, Canada and Pacific Rim nations.

The USDA also anticipates for the full recovery of exports to Japan and Korea is from the first half of this year.

Furthermore, the opening of the Russian market is also seen to boost beef exports in 2008.

Meanwhile, imports of processing beef to the US from Australia and New Zealand are expected to increase in 2008.

With the re-entry of US beef in eastern Asian markets, exports from Australia and New Zealand are likely to be reduced in those areas, resulting in more products being shipped to the US.