Source:  Tom Johnston, MEATINGPLACE.COM, 5/21/10

Increasing sales in Asian markets helped boost first-quarter exports of U.S. beef by 25 percent over the comparable period in 2009, according to a recent report by USDA's Economic Research Service.

Sales have been particularly strong in Japan, South Korea, Taiwan and Hong Kong, the agency said. First-quarter 2010 exports to Japan and South Korea, for example, improved by a respective 30 percent and 9 percent compared with year-ago numbers. A combination of strengthening Australian and New Zealand currencies and strong U.S. marketing campaigns has shifted some of the market share away from those primary competitors. U.S. market share increased 54 percent in Japan and 31 percent in South Korea year-over-year. Meanwhile, beef exports to Hong Kong jumped 143 percent.

The Canadian market, the second largest for U.S. beef exports, saw a roughly 20 percent increase from year-ago levels, which was facilitated by the U.S. dollar's decline against the Canadian dollar.

USDA forecast U.S. beef exports to all countries for 2010 at 2.1 billion pounds, up more than 10 percent from last year.

The agency expects global demand for beef to continue strengthening into 2011 but tight supplies portend exports will fall by 3 percent to 2 billion pounds in 2011 from the 2010 forecast.

"Although global demand should be nearer to full recovery in 2011, reduced domestic supplies will inhibit larger amounts of beef from entering the U.S. export market," the report stated. "Relatively higher prices for U.S. beef may limit its competitiveness against products from Oceania and South America."

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