DENVER, Colo. – The United States exported 18 percent more beef by volume and 30 percent more by value in 2010 than it did in 2009.
Export volume reached 90 percent of the level reached before the discovery of BSE closed international markets in 2003.
By value, 2010 exports set a record. Exports were worth nearly $4 billion US last year, up from the previous record $3.8 billion in 2003. The U.S. Meat Export Federation estimates this adds $170 per head to domestic producers.
Another 10 percent improvement in volume is forecast this year, federation chief executive officer Phil Seng told the National Cattlemen’s Beef Association convention, which was held Feb. 2-5 in Denver.
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The U.S. ships beef to 100 countries, but 70 percent of exports go to Mexico, Canada, South Korea and Japan. The next area of opportunity is China, but negotiations for access are slow.
China has presented several conditions, including traceability requirements, which the U.S. must meet if it hopes to regain access.
Debates over BSE and beef safety continue in negotiations with Asian customers.
“BSE is one of the major issues we are still addressing after all these years,” Seng said.
Nevertheless, recovery has been strong and 2011 may be the year that the U.S. exports more beef than it imports, said Brett Stuart of Cattlefax.
Demand is growing at a time when global supplies are tight, spurring inflationary prices.
“Supplies are incredibly tight. We can go back 50 years and there have not been four years of consecutive (supply) decline,” Stuart said.
The world beef trade is worth $35 billion, compared to $10 billion 10 years ago.
Pork, poultry and beef prices are rising partly because U.S. ethanol policy has driven up the price of grain.
About 40 percent of the U.S. corn crop is used to make ethanol, and
Cattlefax predicts biofuel demands will soon surpass feed use.
Stuart said international pork prices increased 20 percent, poultry prices 11 percent and beef eight percent.
