Marketing
International Market
Providing Support
By Andrew P Griffith, University of Tennessee
Cattle and beef prices in
2017 were much stronger
than anticipated. One of the
reasons for price strength was
international trade. The obvious
boost to domestic cattle and
beef prices is exports. The ability
to move more beef product,
whether it be to domestic or
foreign consumers, is generally
positive to the cattle industry.
Additionally, imports can also
positively influence domestic
beef and cattle prices.
At the time of this writing,
trade data for January through
November was available. Beef
and veal exports the first eleven
months of 2017 totaled just
over 2.6 billion pounds on a
carcass weight basis which
was 13 percent greater (300
million pounds) than the same
eleven months in 2016.
Japan remains the number
one international destination
for U.S. beef and veal. Exports
to Japan in 2017 through
November were nearly 767
million pounds, an increase
of 27.6 percent compared to
the same months in 2016.
The number two destination,
South Korea, increased U.S.
beef and veal imports 6.1
percent compared to 2016
and imported 430.5 million
pounds from January through
68 | APRIL 2018
November. Mexico imported
nearly 383 million pounds the
first eleven months of 2017
which is a 7.5 percent increase
from the same months in 2016.
Hong Kong overtook Canada
in the fourth spot totaling
289.5 million pounds which is
an 11.1 percent increase from
2016 while exports to Canada
increased 2.3 percent and
totaled 283.6 million pounds.
Another interesting story in the
beef export market is China.
Beef exports to China have been
slowly increasing since June
2017. Prior to June, a direct beef
market to China was not open.
However, from June through
November, beef exports to
mainland China totaled just
over 7 million pounds with 5.5
million pounds of that total
being exported from September
through November. This is
a small percentage of total
exports and an even smaller
percentage of total production.
However, the Chinese market
could easily become a boon
to the U.S. beef industry.
It is also important to note
the major beef and veal
export destinations are
those associated with NAFTA
(North American Free Trade
Agreement) and TPP (Trans
Pacific Partnership). The United