April 21, 2014

US February beef imports down 6% on-year

Through February 2014, US beef imports totalled 352.2 million pounds, a decline of 6% from a year earlier, where imports have fallen most from Brazil (-38%), Uruguay (-35%), and New Zealand (-7 %).

Imports from Canada have increased (+7%) as a stronger US dollar makes Canadian beef comparatively less expensive. In the first two months of the year, imports from Oceania declined as significant herd liquidation during last year's drought will lower beef production this year.

The forecast for US beef imports in 2014 was raised 40 million pounds to 2.325 billion pounds, an increase of 3% year-over-year. Import demand is expected to strengthen due to a forecast decline in US beef production.

Prices of domestic processing beef are well above last year as weekly cow slaughter through March 29, 2014, has fallen 8% from a year earlier. Lower cow slaughter will increase demand for imported processing beef. Imports from Mexico are expected to strengthen and, to a lesser extent, imports from Australia and Canada.