MMM 380 September 7, 1998

BEEF IMPORT UPDATE
P.J. Rathwell, Extension Ag. Economist
H.D. Hupp, Animal & Veterinary Sciences

The U.S. is a net importer of beef. For decades we have imported foreign beef primarily from South America and Australia. During the 1990's, imports from these countries have been supplemented by increases in imports of live cattle. Feeder cattle imports from Mexico into feedlots in the Southern Plains and live slaughter cattle from Canada have made up the majority of imported cattle into the U.S. during the last decade.

In 1998, net imports of beef from all sources (including live slaughter and feeder cattle) are expected to increase by 25% over last year. This year's net imports are projected to be between 1.7 and 1.8 billion pounds. However, net imports this year will also be among the lowest annual total in recent decades (Figure 1). Net exports of beef have exceeded 2.5 billion pounds annually in five of the last 27 years. Average annual net imports of beef are about 2 billion pounds.

The U.S. typically imports frozen-boxed beef and processed products. But during the nineties, increased imports of live cattle supplemented these processed products. Net imports of live cattle imports have increased from an annual average of one-half billion pounds in the 170's to over 1.4 billion pounds in the 1990's (carcass equivalent basis).

Net beef imports from Canada have generally increased over the last few years. However, they are projected to decline in 1998 (Table 1). These increases have received considerable attention in recent years, but these increases in live cattle imports have been largely offset by decreases in imports of frozen-boxed beef and processed products. During the 1970's, net beef imports averaged 1.9 billion pounds per year. That total has declined to 0.7 billion pounds in the 1990's. Compared to 20 years ago, the U.S., on an annual basis, is importing a net 0.9 billion pounds more beef on the hoof, yet is bringing 1.2 billion pounds less beef in the box.

Table 1: Total Beef Imports and Exports*


YEAR		 CANADIAN IMPORTS OTHER IMPORTS TOTAL IMPORTS TOTAL EXPORTS NET IMPORTS
1993 1.2 2.9 4.1 1.4 2.7
1994 1.2 2.7 3.8 1.8 2.1
1995 1.2 2.8 4.1 1.9 2.2
1996 1.6 1.8 3.4 2.0 1.4
1997 1.7 2.1 3.8 2.3 1.4
*Billion pound basis, Source USDA


 

Figure 1. Net U.S. Beef Imports





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