Global Beef Market Prospects High

The Japanese relaxation of import restrictions on US beef in February this year seems to be paying dividends for US beef exporters and ranchers.

In February, the Japanese government eased the restrictions that had been in place because of the case of BSE discovered in the US in 2003 and the three subsequent cases.

Japan raised the aged of the cattle from which it would allow the beef into the country to 30 months and under, and since then the US has manage to take advantage of the opening.

By May this year, exports of US beef to Japan had reached heights above those in the pre-BSE era. Exports were up by 32 per cent year on year. The figures for June, when they become available at the end of this month are expected to be even higher.

However, the rise in US exports to Japan is somewhat offset by the closure of the Russian market because of the concerns raised over the use of ractopamine and also a drop in exports to both Mexico and South Korea.

While the US exports to Korea have fallen, the Australia has stepped in to fill the gap with beef trade in Korea is soaring – up by 24 per cent year on year.

For the US beef producers, however, the prospects are looking up at the moment as the predictions for the US corn harvest are high and if this comes to fruition, and then it should ease the burden on the feedlots and the cattle sector in general.

According to market analyst Ron Plain, a larger harvest will help feedlots increase the price they pay for feeder animals although the drought in western US could still have an effect on any expansion of the beef cow herd.

While the US has turned to Japan for its market growth and Australia is taking up the opportunities offered in the Korean market, Brazil is turning its attention to the Asian markets and also to Africa where trade to these areas has grown by 68 per cent compared to last year.