Russia was the largest export market for EU beef in the seven months to July, despite shipments to the region being down 34 percent year-on-year.

Exports to Turkey, the EU largest export market in 2011, fell 71 percent year-on-year for the period, as the Turkish government changed tariff regimes to favor live cattle imports over beef.

Beef imports in the EU have declined 5 percent year-on-year over the same period. Although a higher percentage of domestic production is available on the domestic market as a result of lower exports, beef production in the EU throughout 2012 is forecast by the European Commission to be 4 percent lower year-on-year.

This will ultimately lead to tighter supply on the EU market, as the decrease in exports will fail to cover the shortfall in domestic production and imports.

Australia
Images of cruelty to livestock have again emerged on Australian television, this time showing the mistreatment of cattle and sheep at a facility in the Middle East.

The footage aired on Australian national television drew an immediate call from Animals Australia – the organization behind last year’s exposé of animal cruelty in Indonesia – to suspend the live export of cattle and sheep to the facility in question.

Animal rights groups blame the Australian government and the live export industry for failing Australian animals and calling for live exporters to “hang their heads in shame.”

The groups have called for an immediate tightening of the federal government’s Exporter Supply Chain Assurance System (ESCAS), introduced in the wake of last year’s export suspension of live cattle to Indonesia.

The Australian Live Exporters Council chief executive Alison Penfold said the industry was “appalled” by the footage showing the mistreatment of mainly dairy and breeder cattle and has called on the government to investigate the allegations.

Argentina
Argentinean beef exports during July fell 23 percent year-on-year, to 9,353 MT, with exports for the first seven months of 2012 totaling 68,822 MT – the lowest seven-month total for the past decade and 25 percent below the corresponding period in 2011.

Along with historically low beef production, the lower monthly exports were driven by a fall in exports to Russia, (down 52 percent), Venezuela (down 51 percent) and the U.S. (down 95 percent).

Reflecting a contraction in cattle prices across a numbers of key beef producing nations during August, along with an increase in cattle turnoff, average Argentinean steer prices for the past month decreased 9.3 percent year-on-year, to U.S. $95 per hundredweight (cwt).

Brazil
A typical climate and rain patterns this year in Brazil have led to prolonged grass growth for cattle ranchers in some states and dried-out pastures for others.

But overall, more rain than normal during the current cattle offseason is driving an oversupply, with consumer beef prices down across the country by as much as 30 percent.

More than 90 percent of slaughtered cattle in Brazil are still fattened by pasture. Cattle kept after March typically fetch a high price during Brazil’s April to October dry winter.

But weather in 2012 hasn’t followed the Brazilian norm, making it difficult for farmers to predict beef prices through December.

At the end of July, processors were paying U.S. $41 per arroba (equivalent to about 27.5 pounds) for beef in Goias state, below the benchmark price of U.S. $44.45, considered ideal for farmers, according to the Beef Cattle Commission of the Federation of Agriculture and Livestock of Goias.

The commission expects prices in the 2012 second half to remain below expectations.

Rising grain prices should also discourage cattle feedlot confining in favor of pasture grazing, where available.

In Mato Grosso, Brazil’s largest cattle-producing state, feedlot confinement has been a focal point of rancher investment in recent years because of the typically dry winters. Mato Grosso ranchers confined 813,000 cattle in 2011, second only to Goias state.

Mexico/El Salvador
El Salvador and Mexico have expanded access for imports of U.S. beef, the U.S. Meat Export Federation said in a news release.

El Salvador lifted all age and product restrictions on U.S. beef, which eliminated the need for an export verification program, USMEF said.

Mexico, the largest volume destination for U.S. beef, is still limited to U.S. beef from cattle less than 30 months old. 

But Mexico has agreed to allow imports of four U.S. beef products that had been banned completely since 2003: small intestines, ground beef, head meat and weasand (esophagus) meat.

Chad Russell, U.S. Meat Export Federation (USMEF) regional director said that having a wider range of products eligible for El Salvador will help USMEF capitalize on retail promotions in El Salvador’s rapidly growing number of modern supermarkets.

U.S. beef exports to El Salvador more than doubled in value between 2009 and 2011, reaching nearly $1.2 million last year.

The pace of exports has slowed so far in 2012, but Russell says wider availability of products should help reverse that trend.

Mexico’s decision to expand the range of eligible U.S. beef products will also help grow exports. Small intestines are likely to be a popular item for export to Mexico, but Russell says demand for ground beef is also strong.

Mexico ranks first in volume and third in value among foreign destinations for U.S. beef. Through June, beef and beef variety exports to Mexico totaled nearly 229 million pounds valued at $446 million. 

Clint Peck is former director of Montana’s Beef Quality Assurance program.