Reduced Production, Higher Prices Hard on Beef Exports

Today we’re talking ag trade. U.S. beef exports fell by 4.5% in the first half of 2024 compared to the same period in 2023, continuing a downward trend from a 14.3% year-over-year decrease in 2023. This decline sounds huge, but it followed record export levels in 2022. Reduced beef production, higher domestic prices, and a strong U.S. dollar have all pressured exports according to Dr. Derrell Peel at Oklahoma State University.

He tells that the top three markets—Japan, South Korea, and China/Hong Kong—saw declines of 1.8%, 13.4%, and 11.0%, respectively. These markets, along with Taiwan which also saw a drop, accounted for nearly three-quarters of total beef exports in the first half of the year.

In contrast, U.S. beef exports to Mexico rose by 14.7%, building on an increase from last year. However, speculation is that a recent weakening of the Mexican Peso may dampen exports in the latter half of the year. Canada, the fifth-largest market, experienced a 2.1% decline.

Peel is quick to note that Canada and Mexico are also key sources of beef imports in this delicate dance of trade.