The complicated dance of beef exports

In today’s agricultural trade news, U.S. beef exports recorded a 4.5% decline in the first half of 2024 compared to the same period in 2023, continuing a downward trend that began after a 14.3% year-over-year decline in 2023. Despite the significant decline, 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 most important markets – Japan, South Korea and China/Hong Kong – saw declines of 1.8%, 13.4% and 11.0% respectively, but together with Taiwan they accounted for almost 75% of total exports.

In contrast, U.S. beef exports to Mexico rose 14.7 percent, building on gains from the previous year. However, there is speculation that a recent weakening of the Mexican peso could hurt exports in the second half of the year. Canada, the fifth-largest market, meanwhile, saw a 2.1 percent decline.

Peel emphasizes that Canada and Mexico are also important sources of beef imports in this complex trading environment.