October 22, 2010

US beef exports regain market share

US beef exports surged to a two-year high last week as a weak dollar helped the meat claim a larger share of global markets from other suppliers such as Argentina, Australia and Brazil, USDA and meat industry sources said.

The USDA said Thursday (Oct 21) US beef export sales jumped to 27,400 tonnes last week, the largest weekly volume since 30,129 tonnes during the week ended January 24, 2008.

Prior to the mad cow case, the US exported about 10% of its beef. Exports have been recovering since then and forecasts call for exports to hit about 9% of production in 2010.

World demand for beef is recovering after the upset in markets and economies in late 2008 through 2009. This increase in demand occurred when global beef supplies are tight and prices are high, said an economist with the US Meat Export Federation.

The weak US dollar has made beef, as well as other commodities, more attractive to foreign buyers.

Year-to-date, US beef exports are 557,400 tonnes, up 30.8% from last year's 426,000 tonnes. USDA currently forecasts year-to-date beef exports to be up 18% from 2009.

"South Korea, Russia, and the Middle East have been the largest growth markets for US beef thus far this year, with exports up across the board, excluding Mexico," economist said.

Gains in Russia have been due in part to it taking less from Argentina and Brazil. However, US beef sales to Russia should be slow for the balance of the year because a quota of 21,700 tonnes has been met, he added.