US beef export volumes up 22% in Q1

 

 

The US Meat Export Federation (USMEF) reports that during the first quarter of this year, beef exports were up 22% in volume, to 346 million pounds, from the same period last year.

 

The increased exports are helping boost prices for cattle producers 10-15% this year, an increase that is expected to reach consumers in the supermarket. Beef exports amounted to 10.6% of overall beef production in March, compared with 9.4% in the same month a year earlier.

 

"Exports add an average of US$127 in value per steer or heifer," said Nancy Degner, executive director of the Iowa Beef Industry Council. Prices for cattle vary widely according to age and grade but generally range from US$900-1,500.

 

The rebound is fragile, however. A rising dollar caused cattle prices to plunge Friday (May 14) on the CBOT.

 

Feeder cattle traded in the US$110 per hundredweight range and live cattle traded around US$93 on fears that the stronger dollar may interrupt what has been a promising surge in foreign sales.

 

Iowa is the nation's fourth-largest cattle feeding state, with a population of about 3.9 million animals. Cattle sales annually amount to between US$3.5-4 billion in cash for Iowa's economy.

 

The cattle industry is recovering from two recessions; the most recent was the worldwide economic downturn that cut export demand last year.

 

A more serious slump began in 2003 with the discovery of mad cow disease in some cattle, which closed the doors of some major foreign buyers, most prominently Japan. The Japanese still refuse to allow any US cattle over 21 months old into their markets.

At the time of the mad cow crisis in 2003, exports amounted to more than 13% of US production. That percentage fell to 3.7% in 2004 and made it back to 11% by 2008 before slipping again last year because of the economic slump.

 

Exports are more urgent because of the slow erosion in the US market. Last year, the average American ate less than 60 pounds of beef. As recently as 1970, Americans ate more than 80 pounds of beef per capita.

 

Meanwhile, pork exports were not as impressive in the first quarter, up just 1%. But that figure is likely to rise after China agreed to accept shipments of US pork last week.

 

Chinaclosed its market to American pork last year due to the AH1N1 flu virus scare. In 2008 China was the No. 3 destination for US pork, importing more than 881 million pounds.