October 18, 2008

US beef exports up 67 percent on-year in August

US beef exports expanded 67 percent on-year to 100,297 tonnes cwt in August, despite strengthening of the US dollar.

The August shipping volume isn't the highest, but the export value reached a new record high of US$416 million, up 7.5 percent from the previous record in June 2003.

Mexico and Canada remain the top two markets for US beef, with shipping volumes for August increasing 22 percent and 17 percent on-year, respectively. Exports to South Korea have also increased, with expectations of further growth.

Beef exports to Japan during the Jan-Aug period grew 50 percent on-year despite a recent shortage of US cattle less than 21 months of age, which are the only US cattle eligible for the Japanese market. However, US exports to Japan are expected to remain strong in the coming months.

Although the US dollar has depreciated 7 percent against the Japanese yen in the past 11 weeks, the Australian dollar has devalued 32 percent, providing Australian beef with a current price advantage in Japan.