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BSE in Japan hurts American beef exports

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Published: February 21, 2002

DENVER, Colo. – Disease and recession in overseas markets have knocked

American beef export plans off the pedestal.

The United State’s best and largest offshore customer is Japan, but

that market is caught in the midst of a recession and unprecedented

cases of bovine spongiform encephalopathy. Consumer confidence in beef

has plunged and American exports to Japan have tumbled.

The situation is not entirely dismal. The U.S. remains the world’s

second largest beef exporter. It is the largest importer taking in

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product from Canada, Australia and New Zealand, as well as smaller

amounts of cooked product from South America.

“We are not running a significant trade deficit when we look at cattle

and beef,” said economist Chuck Lambert of the National Cattlemen’s

Beef Association.

The U.S. exports 13 percent of its beef production, Lambert told the

international markets committee.

The U.S. Department of Agriculture reported beef sales dropped by

seven percent in volume to about 1.05 million tonnes. Value declined 11

percent to $2.9 billion US for the 11 months ending November 2001.

Exports are expected to fall another three percent in 2002 and imports

could increase due to demand for more meat trimmings and a strong

American dollar.

“High prices attract imports. The last three or four years of high

imports have been the highest prices,” said Lambert.

Last year, Australia shipped 383,000 tonnes of mostly beef trimmings

for processing, valued at nearly $850 million US. New Zealand delivered

nearly 200,000 tonnes worth $443 million. Lambert said they are not

likely to ship more because both countries have reached their meat

import quota amount. Further sales are subject to a 27 percent tariff.

Canada’s exports to the U.S. reached 330,500 tonnes, up seven percent

over 2000. Canadian imports tend to be whole muscle, higher value boxed

beef cuts worth more than $1 billion.

Industry analysts at Cattlefax expressed concern over declining

exports. If no other buyers are found, that beef might have to be

consumed domestically, which could disrupt markets.

“We don’t have other export markets that can offset that loss. For the

most part it will be consumed domestically,” said analyst Mike Miller.

In 1995, Japan took 55 percent of what America exported. In 2001, that

figure dropped by 10 percent. Canada and South Korea are also buying

less U.S. beef. However, the Mexicans have shown greater interest and

buy 25 percent of the U.S. export product compared to five percent in

1995.

American exports to Mexico have shown the greatest strength in variety

meats because a border tariff imposed by the Mexicans does not apply to

that product.

The Mexicans annually ship about one million feeders, mostly to Texas

and Arizona.

Last year, Canada shipped 160,000 steers and heifers south.

About the author

Barbara Duckworth

Barbara Duckworth

Barbara Duckworth has covered many livestock shows and conferences across the continent since 1988. Duckworth had graduated from Lethbridge College’s journalism program in 1974, later earning a degree in communications from the University of Calgary. Duckworth won many awards from the Canadian Farm Writers Association, American Agricultural Editors Association, the North American Agricultural Journalists and the International Agriculture Journalists Association.

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