November 23, 2007

Canada sees more beef exports to the US in 2008

With the reopening of US of its cattle trade doors to Canada, Canadian beef imports are expected to surge next year with import regulations regarding cattle and beef products from cattle has been moved to over 30 months of age, according to Meat and Livestock Australia (MLA).

The US imported 1.6 million head of cattle in the third quarter of 2007, 11 percent higher than the same period last year, according to the latest USDA Livestock, Dairy and Poultry Outlook.

Third quarter US beef imports were 351,081 tonnes, up 6 percent on the same period in 2006.

Cattle import projections for 2008 are 2.6 million head, up 8 percent on this year's forecast, due mainly to the increased imports from Canada after the over 30 month rule comes into place, says the report.

As the US dollar continues to depreciate, beef imports from Australia, New Zealand, Canada and Uruguay all seem to have been affected especially in the third quarter, reports MLA. Increased feed costs and the Canadian dollar's appreciation against the greenback have encouraged producers to sell feeder cattle rather than finish them.

Weekly reports show about three times as many feeders entered the US from Canada since the end of August compared with the previous two years.

US exports for the third quarter of 2007 were 192,323 tonnes, 38 percent up on 2006, primarily due to increased exports to Japan and Canada, which exceeded the decline in exports to Mexico.