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May 8, 2018 @ 16:12

U.S. beef export industry meets emerging competition

The U.S. export beef industry is faced with a new emerging competition, with Australia’s beef exports projected to grow by nearly 275 million pounds in 2018.

U.S. beef export have recently met an emerging competition for two of its biggest market –Japan and South Korea—which has accounted for a total of 45 percent of its shipments in 2016 followed by Mexico and Canada with 25 and 30 percent respectively.

“Our biggest competitor by far is Australia, with New Zealand and Canada also involved but at a lesser extent. While the combined beef output of Canada and New Zealand is expected to fall slightly from 2017, Australian beef output is pegged to jump by 6.1 percent,” wrote University of Missouri livestock economist Scott Brown in an article from Southeast Farm Press.

According to Brown, the US beef export won’t feel the effect of the competition just yet as the strong demand for beef from U.S. consumers has kept beef prices at reasonable levels despite growing supplies.

Japan and South Korea’s beef demand are projected to combine for more than 3 billion pounds of beef imports this year, up from just under 2.5 billion pounds in 2015 and a 24% increase in just three years.

Strong demand for beef from U.S. consumers has kept beef prices at reasonable levels despite growing supplies. The same scrutiny will be placed on beef demand in Japan and South Korea to soak up growing world beef output. These two nations are projected to combine for more than 3 billion pounds of beef imports this year, up from just under 2.5 billion pounds in 2015 and a 24% increase in just three years.

To this point, growing demand from major consuming countries has allowed for these additional supplies to enter the market without severely compromising price, but further production growth will continue to pressure markets.

With the same factors at play around the world that have been the impetus for U.S. beef industry growth (increasing consumer taste for higher-quality beef, stable feed prices and a growing economy), export competition will continue to intensify in the coming years. To this point, growing demand from major consuming countries has allowed for these additional supplies to enter the market without severely compromising price, but further production growth will continue to pressure markets.



 

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