Page 3 - MWC 10-27-2022s

The Midwest Cattleman · October 27, 2022 · P3

October 27, 2022 Volume 28 No. 10

U.S. BEEF EXPORTS TOP $1 BILLION AGAIN REPORT SHOWS ENDING U.S. BEEF TRADE

August beef exports were COULD BE CATASTROPHIC FOR INDUSTRY
slightly above last year’s A recent report revealed port outlines why the U.S.
large volume and topped $1 economic disaster would be exports and imports beef and
billion in value for the sev- the end result if all U.S. beef provides a review of histori-
enth time in eight months trade was eliminated. The cal beef trade data. The au-
this year. report was authored by ag- thors highlight that implied
"We speak often about ricultural economists Glynn trade prices clearly show the
the importance of develop- Tonsor of Kansas State Uni- U.S. receives a higher dollar
ing a wide range of markets versity and Derrell Peel from per pound value for exports
for U.S. red meat, and the Oklahoma State University. than it pays for imports.
August export results are a compiled by USMEF. Export According to the report, if From 2016 through 2020,
great illustration of that,” value was just under $1.04 both U.S. beef exports and the U.S. average annual un-
said US Meat Export Fed- billion, slightly below the imports declined by just prepared beef exports were
eration President and CEO then-record total achieved in 10%, prices and quantities 2.05 billion pounds, which
Dan Halstrom. "Exports face August 2021, which was the of feeder cattle and fed cattle had an export value of $6.4
significant headwinds in first time monthly exports would fall significantly. Cu- billion and an implied export
some key destinations, with topped the $1 billion mark. mulatively, a 10% reduction price of $3.13/lb. Conversely,
weakened currencies topping August beef exports to in beef trade over 10 years the average annual unpre-
the list. But the emphasis on China/Hong Kong were re- would create a loss of $12.9 pared beef imports for that
broad-based growth really cord-large and shipments to billion to those selling feed- same time were 2.30 billion
pays dividends in these sit- leading value market South er cattle and $6.8 billion to pounds, with an import value
uations, allowing the overall Korea exceeded last year’s fed cattle sellers. A scenario of $5.8 billion and an implied
export picture to remain very large volume. Exports also where 100% of U.S. beef trade import price of $2.52/lb. The
positive. I also cannot say achieved robust growth in was lost would suggest a cat- authors state in the report
enough about the loyalty of the Middle East, Canada and astrophic impact, broadly ap- these statistics “clearly in-
our international customers, the ASEAN region, which in- proximated in the report to dicate participation in the
many of whom have dimin- cluded a new record for ship- cost those selling feeder cat- global market provides a net
ished purchasing power but ments to the Philippines. tle $129 billion and fed cattle economic gain.”
continue to show a strong For the first eight months $68 billion, leading to a sig- The report was commis-
preference for U.S. red meat.” of 2022, beef exports in- nificantly smaller industry. sioned by the Kansas Beef
August beef exports totaled creased 5% from a year ago The authors also calculat- Council, Oklahoma Beef
133,832 mt, up 1% year-over- to 1.004 million mt, valued at ed the impact on individual Council and Texas Beef
year and the second largest $8.23 billion – a remarkable states. In the case of a 10% Council.
volume on record – trailing 24% above last year’s record decrease in U.S. beef trade,
only May 2022, according to pace. Kansans selling feeder cattle KLA
data release by USDA and would experience a $611
million loss and those
FARMERS FACE NEW REALITY IN BEEF SUPPLY CHAIN selling fed cattle would
HIGH RETAIL PRICES STRUGGLE TO FIND THEIR WAY BACK TO see a $1.22 billion loss.
FARMERS’ POCKETS BECAUSE OF DISTRIBUTION COSTS. If completely eliminat-
By Scott Brown ed, feeder cattle sellers
Cattle prices have been in Kansas could stand
moving higher, but not to the to lose $9.1 billion over
same extent as beef prices. a 10-year period.
For the first eight months Additionally, the re-
of this year, fed-steer prices
are 18.9% above the 2018-19
average for January-August. Coming Sales-30
Feeder steer prices are up
13.2%. While these are solid Life is Simple-5
increases, they fail to match Market Report-8
the rise in Choice boxed beef Agribusiness
prices (+22.1%) and Choice
retail beef prices (+27.4%) BEYOND THE FARM GATE: All along Directory-28
the supply chain, there is an increasing
over the same period. cost of doing business, whether that
There have always been is labor, transportation or even the
storeroom clerk. All these inputs add up
continued on page 12 to higher retail beef prices.