KANSAS CITY, MO – Since 2000, imports of beef have represented about 11 percent of total U.S. beef production, while exports reflect about 9 percent. According to USDA’s Economic Research Service (ERS), U.S. beef trade is largely dependent on domestic production, and any shock wave in the production system or supply chain can have defining impacts. For example, in 2003 when bovine spongiform encephalopathy (BSE) was found in Canada and the United States, the U.S. imported record amounts of beef for the following two years (2004 and 2005). At the same time, domestic producers lost export markets as overseas customers banned beef from North America. Another example occurred when a historic drought hit the Southwest leading producers to cull herds which in turn led to the smallest cow herd in more than 60 years (since 1952). Finally, during the height of the COVID-19 pandemic, weekly beef production fell by 34 percent as meat-packing facilities closed and supply chains were shut down. The end result, according to government economists, 2021 should present another opportunity for beef exports to grow as production systems regain traction and imports are expected to fall.
(SOURCE: All Ag News)