April 15, 2008

 

US beef prices to rise on reopening of Japan, South Korea export markets

 

 

The US beef and cattle prices are expected to rise in coming months, especially if Japan and South Korea reopen their export markets, although uncertainties remain.

 

The discussions of the US with the two countries remain a work in progress, so industry analysts are not ready to make forecasts for exports sales.

 

Both markets were closed in December 2003 when the first case of mad cow disease, was found in the US. 

 

Japan has since reopened partially, and South Korea has done the same but is effectively re-closed after some shipment problems.

 

The two Asian countries were top-tier export destinations for US beef prior to 2003.

 

The US Meat Export Federation (USMEF) last week said the US Department of Agriculture export data showed that even without the two Asian powerhouses, foreign markets continued to buoy the US beef and pork industries in January and February, with beef exports posting gains over the previous year.

 

In a release, USMEF CEO Philip Seng called export markets "the growth engine for the US meat industry.

 

The weakened US dollar, competitive pricing for US exports, and declining production by some of the competitors combine to create conditions that support continued growth internationally, Seng explained.

 

Jim Robb, agricultural economist at the Livestock Marketing Information Center, said he estimated 2008 beef exports without an open Japan and South Korea at 1.7 billion pounds, compared with 2007's 1.431 billion. His estimate does not include beef variety meats.

 

Robb expects diligent efforts by government negotiators "could pay off" with opened Japanese and South Korean export markets by as early as late spring.