March 11, 2004

USDA Raises US Beef Export Forecast

Mexico partially lifted its ban on U.S. beef on March 3 and as a result, the U.S. Department of Agriculture nearly doubled its forecast for overall U.S. beef exports in 2004.
 
In its monthly supply and demand report released Wednesday, the USDA said it now expects U.S. beef exports to total 430 million pounds, up from a forecast of just 220 million pounds last month.
 
The 2004 U.S. export forecast is still just a fraction of the 2.5 billion pounds exported last year before a case of bovine spongiform encephalopathy, or mad-cow disease, was discovered here in December. Japan, South Korea and Mexico were all quick to shut there borders to U.S. beef after the incident.
 
USDA officials say they are continuing to negotiate to open more of those markets as well as work out details that still prevent most U.S. beef exports to Canada.
 
Mexico imported $819 million worth of beef from the U.S. in the first 11 months of 2003 before the USDA announced its BSE discovery in December, according to data compiled by the U.S. Meat Export Federation. Mexico is the second-largest market for U.S. beef behind Japan.
 
Two U.S. companies, Excel Corp. and Swift & Co., now are eligible to begin shipping boneless beef from cattle under 30 months of age to Mexico, according to a new list on the USDA's Agriculture Marketing Service Web site.
 
A USDA official said Tuesday shipments to Mexico are expected to begin as soon as this week.