Asian markets boost US beef exports

Increasing sales in Asian markets helped boost first-quarter exports of US beef by 25% over the same period in 2009, according to a recent report by USDA's Economic Research Service.

Sales have been particularly strong in Japan, South Korea, Taiwan and Hong Kong, the agency said. First-quarter 2010 exports to Japan and South Korea, for example, improved by a respective 30% and 9% compared with year-ago numbers. A combination of strengthening Australian and New Zealand currencies and strong US marketing campaigns has shifted some of the market share away from those primary competitors. US market share increased 54% in Japan and 31% in South Korea on-year. Meanwhile, beef exports to Hong Kong jumped 143%.

The Canadian market, the second largest for US beef exports, saw a roughly 20% increase from year-ago levels, which was facilitated by the US dollar's decline against the Canadian dollar.

USDA forecast US beef exports to all countries for 2010 at 2.1 billion pounds, up more than 10% from last year.

The agency expects global demand for beef to continue strengthening into 2011 but tight supplies portend exports will fall by 3% to two billion pounds in 2011 from the 2010 forecast.

"Although global demand should be nearer to full recovery in 2011, reduced domestic supplies will inhibit larger amounts of beef from entering the US export market," the report stated. "Relatively higher prices for US beef may limit its competitiveness against products from Oceania and South America."