US beef exports to increase 9%

The estimation for 2010 US beef exports were left unchanged but they are expected to increase 9% or 169 million pounds to 2.04 billion pounds from 2009 levels.

Commercial beef production in 2010 is now projected to be 25.65 billion pounds, up 175 million pounds from the January report but still 1.2% or 313 million pounds lower than in 2009.

The USDA says one major factor going forward will be the situation in the US cow calf sector. There is currently little indication that producers are willing to hold back heifers to rebuild the beef cow herd. Dairy producers, on the other hand, will likely embark on more herd culling given persistent profitability issues.

Beef imports were reduced by 20 million pounds but they are still projected to be 4.9% or 132 million pounds higher than in 2009. The downward adjustment was likely prompted by a very slow start in beef imports from Australia and New Zealand and imports are not expected to recover anytime soon.