A year later in 2011, the volume of beef products going overseas jumped to levels even higher than those prior to the BSE crisis.
That prosperity overseas paid off in spades for beef producers. As the trend hit its apex, economists said exports added nearly $300 per head to slaughter cattle.
Five years later, those tides have shifted. Whether it’s an omen to an overall market drop or just a noteworthy trend is still to be determined. But today’s producers should take heed at the shrinking fortunes we see in export markets.
The latest data from the U.S. Meat Export Federation show beef exports down 10 percent in volume over the previous year, for January through July. While volume decreases have been the trend for a while, the value of exports has kept up. But that’s also on shifting ground, as value of beef exports dropped 2 percent below last year’s pace, according to USMEF.
What caused the reversal of fortune? Several factors, when you break them down.
Last winter’s longshoremen versus shipper labor dispute certainly didn’t help matters. With a shutdown of shipping ports, beef exports sat dormant, and products didn’t move to their destinations.
The U.S. dollar also continues to improve in comparison to other currencies. While that boosts our buying power, it’s not good for the spending power of other nations as they try to purchase American products – beef being one of them.
Among the currencies performing most poorly is the Chinese yuan. And when that happens, other currencies also begin to stagger (and with it, the U.S. stock market – as proven by the late summer chaos on Wall Street).
Add it up, and exchange rates will not be helping U.S. beef for some time until more recovery takes place.
All of this occurs while the U.S. beef industry is plodding ahead to rebuild herd numbers. Meanwhile, Mexico and Canada are now keeping more of their cattle, and Australia is staking ground with fewer tariffs on its beef shipments. It’s enough to think the world is working against us.
But as the Good Book says, the best revenge is righteous living. American ranchers must continue to reinforce, and even raise, the high standards of quality that have made their cattle such a popular product overseas. Buyers in the U.S. have faced high prices for the past five years, yet they still purchase beef because they know it’s worth it.
Regardless of whether it’s U.S. or foreign consumers who have more change in their pockets, the key is for ranchers to keep raising the safest and best beef shoppers can buy. 
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David Cooper
- editor
- Progressive Cattleman magazine
- Email David Cooper
