Beef exports in the January – June period were down in most major beef export destinations.
Derrell S. Peel, Oklahoma State University
For the first half of the year, beef exports decreased 4.5 percent year over year. This follows a 14.3 percent year over year decrease in 2023, down from record beef exports in 2022. Beef exports continue to follow current market conditions of declining beef production and higher domestic beef prices. These, combined with a generally strong dollar, have pressured beef exports lower, as expected.
Beef exports in the January – June period were down in most major beef export destinations, but by varying degrees. The top three beef export markets, Japan, South Korea, and China/Hong Kong were down by 1.8 percent, 13.4 percent and 11.0 percent year over year, respectively. These along with Taiwan, down 8.3 percent from last year, account for 73.9 percent of total beef exports in the first half of 2024.
Number four Mexico is an exception with U.S. beef exports to Mexico up 14.7 percent year over year. This follows a 12.2 percent year over year increase in 2023. Mexico currently accounts for 11.2 percent of total beef exports. The growth in beef exports to Mexico follows a significant decline from 2020 through 2022. In 2019, Mexico was the number three beef export market with a 14.0 percent share of total U.S. beef exports. Beef exports to Mexico have been helped since 2020 by increasing strength of the Mexican Peso to the U.S. dollar. However, since the beginning of August, the Peso has weakened against the dollar to the lowest level in more than 18 months, which could temper beef exports to Mexico in the last half of the year. Canada is the number five market for beef exports, down 2.1 percent year over year for the first six months of 2024, and accounting for 8.7 percent of total beef exports.
Canada and Mexico are also major sources of beef imports. Canada is the largest source, accounting for 22.9 percent of beef imports. Mexico is the number four beef import source, accounting for 12.8 percent of beef imports in the January – June period. This bilateral trade highlights the fact that beef trade flows consist of many different products that move into distinct markets in each country. This is true for all beef exports, with each destination representing demands for specific products. The beef industry produces a vast array of different beef products of differing qualities. Both beef exports and imports enhance the value of U.S. beef production by improving the balance of supply and demand for various beef products in U.S. and international markets.
