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“ Global demand for U . S . beef has eclipsed anything I have seen in many years in the meat business ,” says Dan Halstrom , USMEF President and CEO . “ While this momentum is fueled by mainstay markets such as South Korea , Japan and Taiwan , demand is also very strong in China / Hong Kong and key Latin American markets , while exports to the Middle East have rebounded impressively .”
March beef export value equated to $ 472.73 per head of fed slaughter , up 36 % from a year ago . The first quarter average was $ 474.10 per head , up 41 %. Exports accounted for 14.7 % of total March beef production , up from 14.5 % a year ago , while the ratio for muscle cuts was steady at 12.7 %.
Halstrom cautions that first-quarter results do not fully reflect the impact of recent COVID-19 lockdowns in China that slowed product movement and forced many restaurants to suspend or limit service . These obstacles are likely to have a greater impact on April and May export data . He notes that while beef demand has been very resilient , inflation represents a potential headwind .
“ Consumers throughout the world have shown how much they value the quality of U . S . beef , but disposable income is under increasing pressure as they pay more for energy and other daily needs ,” Hailstorm says . He adds that pork , beef and lamb exporters continue to face logistical obstacles and delays when moving product overseas . The situation is especially challenging for chilled meat shipments to key Asian markets .
Outcross African Genetics
We have been a mainstay in the Fullblood business and have recently added purebreds to the herd . As an added bonus , we have imported genetics from South Africa we have infused into the herd .
Global Economic Growth Softens Supply chain disruptions associated with Russia ’ s invasion of Ukraine are adding extra lift to inflation and more pressure to postpandemic economic recovery .
“ The global economic outlook for 2022 remains positive , but previous growth projections are moderated due to trade disruptions , rising energy costs , rising inflation rates , and commenced tightening of monetary policy ,” according to the latest quarterly Outlook for U . S . Agricultural Trade from USDA ’ s ERS and Foreign Agricultural Service ( FAS ).
Compared to the previous Outlook , ERS and FAS analysts lowered projections for this year ’ s world gross domestic production to 3.6 % from 4.4 %.
“ The Russian invasion of Ukraine has presented new challenges to global economic growth ,” analysts say . “ The conflict and resulting response have further elevated energy prices , most immediately impacting the European market . Continued supply chain constraints and complications remain a significant global growth headwind . Central banks are expected to respond to rising inflation rates by implementing contractionary monetary policy . The tightening of monetary policy typically presents challenges to economic growth in the short term .” U . S . GDP was forecast at 3.7 % versus 3.8 % in the previous report . Even so , U . S . agricultural exports in fiscal year ( FY ) 2022 are forecast at a record $ 191.0 billion , up $ 7.5 billion from the February forecast , led by increases in corn , cotton and soybeans .
Overall U . S . livestock , poultry and dairy exports are projected to increase by $ 1.2 billion to $ 40.4 billion , with gains across all major commodities except pork . Beef and veal exports are projected to increase by $ 700 million on higher unit values as demand in East Asia is expected to remain firm .
“ To date , demand for U . S . red meat has been as strong as I ’ ve ever seen in all my years in the meat business , and remarkably resilient ,” Halstrom explained during USMEF ’ s Spring Conference . “ But the question in my mind is , at what point do these inflationary pressures start to constrict disposable income for the global consumer ? At what point will we see a crack in demand ?”.
ABOUT THE AUTHOR : Wes Ishmael has been involved with livestock publications since 1983 . Wes grew up in Colorado and has always been in and around the livestock business . He now lives in Benbrook , Texas .
AR BIG BUCKS 4108B A herd sire that shows the kind of Limousin characteristics we like in our cattle .
When you are in the market for Fullblood , Purebred or Outcross Limousin Genetics give us a call .
Kraig and Rhonda Withers - 918.724.9002 - withcoconstructors @ sbcglobal . net
44 • JULY 2022