August 21, 2024

US beef exports decline amid rising domestic prices and reduced production

US beef exports saw a 4.5% decrease year-on-year for the first half of 2024, continuing the downward trend from 2023, which recorded a 14.3% drop following record exports in 2022, Drovers reported.

The decline in beef exports aligns with current market conditions, including reduced beef production, rising domestic beef prices, and the effects of a strong US dollar, all of which have exerted pressure on export volumes.

Exports during the January to June period were lower across most major beef export markets, with declines varying in magnitude. The top three destinations - Japan, South Korea, and China/Hong Kong, experienced year-on-year decreases of 1.8%, 13.4%, and 11.0%, respectively. Along with Taiwan, which saw an 8.3% drop from last year, these four markets accounted for 73.9% of total beef exports during the first half of 2024.

In contrast, Mexico, the fourth-largest market for US beef, saw a 14.7% increase in exports year-on-year. This follows a 12.2% rise in 2023, reflecting a rebound after significant declines from 2020 to 2022. Mexico now accounts for 11.2% of total US beef exports. In 2019, it was the third-largest market with a 14.0% share.

The growth in exports to Mexico since 2020 has been supported by the strengthening of the Mexican peso against the US dollar. However, since August, the peso has weakened to its lowest level in over 18 months, which may dampen export growth to Mexico in the latter half of the year.

Canada, the fifth-largest market for US beef, saw a 2.1% decline in exports for the first six months of 2024. Canada accounted for 8.7% of total beef exports during this period.

Canada and Mexico are also significant sources of beef imports for the US. Canada leads with 22.9% of beef imports, while Mexico is the fourth-largest source, accounting for 12.8% of imports during the first half of the year.

-      Drovers