US beef industry in danger to lose access to 4 big markets
A new report from CoBank’s Knowledge Exchange Division signals the importance of trade agreements for the US beef industry.
At this point, Washington seems to be on deadlock with negotiations on TPP, NAFTA and USA-South Korea trade agreement, a situation that could endanger beef exports to Japan, Mexico, Canada and South Korea.
"We know supplies are growing, so that puts more pressure on the demand side of the equation. Moving forward, exports are even more critical", explained Trevor Amen, animal protein economist with Co Bank.
Beef output is tracking to reach a peak in 2018, as the US beef cow herd has grown constantly in the last 3 years.
Still, 80% of the beef produced in the US is exported, with 83% of that being directed to Japan, Mexico, Canada, South Korea and Hong Kong.
For the moment, Hong Kong is the only one that will be unaffected by current negotiations. At the same time, competitors from Australia, New Zealand, Brazil and Argentina are hoping to increase their market share in those markets.
"Japan is definitely a prize market. Now that Australia is entering the expansion phase of their cattle cycle, looking forward, they will have more available supplies to export. Which will definitely be a competitive market moving forward for the U.S", said Amen.
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