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Weak Beef Exports Raises Concerns |
Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his economic analysis of the beef cattle industry as part of the weekly series known as the “Cow Calf Corner” published electronically by Dr. Peel and Mark Johnson. Today, Dr. Peel talks about January beef exports.
Beef exports in January were down 15.7 percent year over year. Despite record beef exports in 2022, signs of a weakening beef trade picture were developing late in the year with beef exports down year over year in both November and December. A strong U.S. dollar peaked in late 2022 and has decreased, but remains high, provided export headwinds that appear to be taking a toll.
The biggest decrease in January exports was South Korea, down 36.8 percent year over year. The dollar appreciation to the South Korean Won was particularly acute in late 2022 but has moderated somewhat since last October. In 2022, beef exports to South Korea increased 3.2 percent to a new record level and giving South Korea a 22.8 percent share of total U.S. beef exports, remaining the number two export market, but just fractionally lower than Japan.
Beef exports to China/Hong Kong were also down 24.2 percent year over year in January. Slower beef exports to China/HK were not an issue of exchange rates as much as the broader slowdown in the Chinese economy, perhaps aggravated by political tensions between China and the U.S. China/HK was the number three beef export market in 2022 with a 20.1 percent share of total beef exports. Beef exports to China/HK grew by 7.1 percent year over year in 2022, much slower than the previous two years but still the most growth among major U.S. beef export markets.
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Rural Oklahoma is full of some of the greatest success stories throughout the entire state and is a big reason why Oklahoma is on track to become a top 10 state.
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The Road to Rural Prosperity is here to tell stories about rural America, for rural America.
Oklahoma Farm Report's Ron Hays talks regenerative agriculture and ranching with Jimmy Emmons. Jimmy is a long time resident of Leedey, OK. He is the third generation on the family farm in Dewey County. He and his wife Ginger have been farming and ranching together since 1980. They have a diverse 2000 acre cropping operation growing wheat, soybeans, sesame, sunflowers, irrigated dairy alfalfa hay, canola, grain sorghum and several cover crops for seed.
Jimmy has been monitoring soil health with soil testing since 2011 utilizing cover crops to enhance soil health.
Jimmy and Ginger also have a 250 cow/calf herd and take in yearling cattle for custom grazing on the nearly 6000 acres of native range. Ginger is the primary cattle manager in the operation. The Emmons’ utilize an adaptive multi-paddock grazing system on their range and forages grown on crop ground. They use the system to keep the native grasses and soils healthy, maximize biological diversity and optimize animal health.
As Jimmy Says- Long Live the Soil!
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