Japan, China and South Korea are now huge markets for American beef. Beef exports surpassed $10 billion for the second year in a row, despite the impact of inflation on purchasing power and ongoing COVID restrictions in China.
Beef exports reached $10.05 billion in the first 10 months of this year, up 18% from last year’s record pace, according to an analysis of USDA data by the U.S. Meat Exporters Federation. This is his second time beef exports have surpassed his $10 billion mark.
However, beef supplies are expected to tighten. Beef slaughter is up about 12% year-to-date.
This culling activity, combined with a sharp decline in alternative heifer production over the past two years, will reduce USDA herd numbers by 1.1 to 1.2 million beef cattle (-3.5% to -4%). There is a possibility. It will last until January 1, 2023.
Cattle slaughter is likely to fall by nearly 5% in 2023, with the biggest year-on-year decline expected in the second half of the year.
Drought has been a problem for production, but as far as export markets are concerned, the numbers are solid.
Source: ESS-Feed