The Intricate Dance of Beef Exports

In ag trade news today, U.S. beef exports experienced a 4.5% decline in the first half of 2024 compared to the same period in 2023, continuing a downward trajectory from a 14.3% year-over-year drop in 2023. Despite the significant decrease, this decline follows record export levels in 2022. Factors such as reduced beef production, higher domestic prices, and a strong U.S. dollar have contributed to the pressure on exports, according to Dr. Derrell Peel of Oklahoma State University.

The top markets—Japan, South Korea, and China/Hong Kong—saw decreases of 1.8%, 13.4%, and 11.0%, respectively, and along with Taiwan, they made up nearly 75% of total exports.

In contrast, U.S. beef exports to Mexico increased by 14.7%, building on last year's gains. However, there is speculation that a recent weakening of the Mexican Peso might affect exports in the latter part of the year. Meanwhile, Canada, the fifth-largest market, saw a 2.1% decline.

Peel is quick to highlight that Canada and Mexico are also crucial sources of beef imports in this intricate trade landscape.