June 10, 2010

 

Canadian beef exports to rise this year
 

 

Exports of Canadian beef and veal will be up this year expecting to reach 420,700 tonnes, compared to 378,499 from 2009, according to a report released by the Canadian Beef Export Federation (CBEF).

 

The report also speculates total exports will rise to 437,000 in 2015 and to 450,000 in 2020.

 

Canadian beef's main export destination is the US, but the CBEF report forecasts a downturn in US import numbers. "We believe there will be somewhat better access to markets outside of the US," said Ted Haney, president of CBEF.

 

The report predicts 306,000 tonnes will be exported to the US by the end of 2010, but drop to 300,000 tonnes in 2015 and to 292,000 in 2020.

 

Despite export numbers to the US dropping, overall exports of beef and veal from Canada are expected to keep rising due to trading restrictions between countries being resolved, and markets accepting Canadian beef products and re-entering the industry.

 

"Overall we've seen a strengthening in Asia and Mexico due to relatively strong currency and stable consumer markets," said Haney.

 

Japan was one of the countries which closed imports to Canadian beef in 2003. In 2006, the country re-opened its doors and by the end of 2010 they are expected to import 13,900 tonnes, compared to 10,277 from 2009, said the CBEF report.

 

Taiwan also closed imports to Canadian beef in 2003, but started to accept the product again in 2007. The CBEF expects 3,100 tonnes will be exported to the country by the end of 2010, compared to 2,905 from 2009.

 

Mainland China still does not import Canadian beef, however the report speculates in 2015 that 3,000 tonnes will be exported there, compared to 2,651 in 2002. Also, South Korea did not import Canadian beef until this year, and the CBEF expects 2,100 tonnes to be shipped there by the end of 2010.

 

"BSE has definitely put an economic strain on our industry, along with high feed prices and high Canadian dollar," said Haney.

 

"Now, we are seeing a full normalisation of trade with Russia, we believe over next year we will likely see a normalisation of trade with Mexico that will provide us very specific relief," he said. The CBEF predicts 54,200 tonnes will be exported to Mexico by the end of 2010, compared to 44,867 from 2009.

 

In 2005 Canadian producers had 5.2 million head of cattle, compared to an estimated 4.2 million in 2010 as a result of BSE, high feed prices, and a strong Canadian dollar.

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