April 30, 2012

 

 

Exports are profitable business for the US beef industry, which shipped a record US$5.4 billion worth of beef abroad last year.

 

It was the first year sales surpassed those in 2003, when exports to Asia collapsed amid the first US mad cow disease scare. Before Tuesday's announcement that mad cow disease had been found in a California dairy cow, the USDA predicted exports would drop slightly this year as ranchers limit production because of drought and high feed costs.

 

Last year, 14% of the beef produced in the US was shipped overseas. Measured in both sales and volume, exports saw growth of more than 20% according to the U.S. Meat Export Federation. Four countries, Canada, Mexico, Japan and South Korea, accounted for 65% of last year's exports.

 

CANADA imported 191,047 metric tonnes of US beef in 2011, a 25% increase over 2010. It was worth US$1.03 billion, up 41% from 2010. Canada was the first of the US' major trading partners to say Tuesday that it was confident in the US food safety system and would not limit imports because of the mad cow case.

 

MEXICO imported 256,938 metric tonnes, a 4% increase. It was worth US$985 million, up 20%. Mexico is among the major buyers of variety meats - pieces Americans disdain including tongues, livers and other organs. Last year, it was the number two importer of variety meats by volume at 100,410 metric tonnes worth US$223 million, and number one measured in dollars. Mexico said Wednesday it would continue imports with safeguards it has had in place for eight years to keep mad cow cases out.

 

Japan imported 158,646 metric tonnes, a 27% increase. It was worth US$874 million, up 37%. Cow tongue is a delicacy that fetches high prices in Japan, one reason it is the number three buyer of variety meats as measured in dollars.

 

South Korea imported 154,019 metric tonnes, a 37% increase. It was worth US$686 million, up 32%. Two major South Korean retailers pulled US beef from their stores amid concern over how consumers would react to the announcement about mad cow, but one resumed sales within hours after the government announced it would increase inspections.

 

South Korea's 40% tariff on beef is being phased out over the next 15 years under the new US-Korean free trade agreement.

 

Egypt imported 147,833 metric tonnes, a 30% increase. It was worth US$236 million, up 33%. Egypt's was the top importer of variety meats by volume - 113,953 metric tonnes worth US$141 million, and number two in dollars. It is the top buyer of US beef in the Mideast.

 

Russia imported 72,797 metric tonnes, a 27% increase. It was worth US$256 million, up 68%. Russia imported 24,514 metric tonnes of variety meats worth US$39 million, ranking it number three in volume and number four in dollars.

 

Hong Kong imported 50,705 million metric tonnes, up 27%. It was worth US$237 million, up 50%. Mainland China remains mostly closed to US beef imports, however.

 

Vietnam imported 44,643 metric tonnes, up 3%. It was worth US$192 million, up 17%.