Changes in the Dynamics of Global Beef Trade Evident in Latest Export Numbers Out from USMEFThu, 10 Oct 2019 13:42:58 CDT
Earlier this week, the United States Department of Agriculture and the US Meat Export Federation released the latest US meat export numbers accounting for all months this year up to August. According to Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel, in a conversation with Radio Oklahoma Ag Network Farm Director Ron Hays, the reported performance of beef exports during the month of August were somewhat disappointing. When considering the bigger picture and how these numbers factor in, Peel says the truth of the situation is much more complex than it seems on the surface.
Peel remarked that earlier in the year, there were some concerns about the amount of beef being imported. However, those concerns have since subsided some as imports have gradually become more centrally distributed by our North American partners, Mexico and Canada. This influx of North American product has conversely displaced much of the product that was being imported from place like New Zealand for instance. Peel says that in itself speaks to a much larger issue.
“A lot of flows of beef is being redirected into China right now and certainly what we see in New Zealand is part of that,” Peel said. “Obviously, part of that is related to the trade issues we have but a lot of these things are just dynamics. There’s a lot of dynamics in global beef flows right now.”
As these dynamics play out, other situations are developing elsewhere around the world. For instance, the new deal recently struck between the US and Japan will likely have significant impacts on the flow of beef internationally once officially implemented. By eliminating the tariff disadvantage that CPTPP members had over the US, the American beef industry will again have a level playing field to compete in the Japanese market. Peel says this will help alleviate some of the recent pressure that has weighed on beef exports. According to Peel, Japan’s tariffs were already being felt by the industry. He is hopeful this will change the course for exports as Japan continues to reign as the No. 1 US beef customer.
Listen to Peel’s complete exchange with Hays on today’s Beef Buzz to hear more about the changing dynamics in global beef trade.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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