July 22, 2010

USDA expects growth in American beef exports this year

USDA has raised its estimate for American beef exports in 2010 to 2.09 billion pounds, a 12% increase from 2009.

At that level, US beef exports would reach 83% of pre-BSE levels in 2003, the agency said in its recent Livestock, Dairy and Poultry outlook.

USDA expects second- and third-quarter growth in US beef exports of 15 and 11%, respectively, to 540 million and 550 million pounds. The agency said a strengthening US dollar is not expected to dampen demand, partly due to growth in Asian markets.

Through May, US beef exports were up 26% over the same period a year ago, fuelled by increases in Japan (24%), South Korea (74%), Taiwan (54%) and Hong Kong (126%).

Another positive for US beef exports, USDA said, are possible supply constraints in markets of competing beef suppliers. Tight supplies in Argentina, for example, have prompted Russia to seek out more US beef. Meanwhile, Australia's beef production in 2010 is projected to be the lowest since 2003.