Value of Beef Exports

1
Value of Beef Exports

• Paul Clayton
• US Meat Export Federation
• 2002 Cattle Industry Summer Conference
• Research and Technical Services Update Session
• July 17, 2002

2
2001 Beef/BVM Exports

• U.S. exports reached 1,274,000 MT in 2001 an
  increase of 32 from 1996.
• Valued at 3.4 billion in 2001.
• Slight decline in 2001 due to weak world economy,
  strong U.S. dollar, and concerns over food safety
  in major markets.

U.S. Beef BVM Exports 000 MT
U.S. Department of Commerce/Trade Census Bureau
3
Beef/BVM Export Forecasts
1,640K MT in 2005
Growth 2002-05 366K MT (29)
USMEF Estimate
4
Value of Exports to the U.S. Beef Industry

• Previous Estimates
• Based on exports as a percent of production and
  the price elasticity of supply
• Exports equal 9.4 of supply
• Price drops 1.5 for each 1 increase in supply
• 9.66 per cwt live per fed steer
• Estimate is incomplete in three ways
• Does not account for
• variety meats
• different export cut mix
• items with low domestic value

5
Objectives

• Built on previous research regarding the
  importance of beef exports by analyzing the US
  Beef exports by individual cuts and variety
  meats.
• Impact of exporting items that have little or no
  value to US consumers but sell as premium
  products in the international markets

6
Methodology

• Volume of each cut exported
• Survey of USMEF International Office
• PIERS data base (excluding Canada and Mexico)
• Value of each cut exported
• International Market Data
• Exporter Data

7
Rank of the Top Ten Beef Cuts from the Following
Markets

• Japan
• Taiwan
• Russia
• China
• ASEAN
• Central / South America

• Mexico
• Caribbean
• Hong Kong
• Korea
• Middle East
• Central / Eastern Europe

8
Top 10 Beef Export Items
USMEF Estimate, 2002
9
Percent Exported
USMEF Estimate, 2002
10
International vs. Domestic Values
USMEF Estimate, 2002
11
One Cut Example

• Short Ribs
• Used in trim if sold in US (1.33-2.09/kg)
• Sold for Korean BBQ in Asia (4-10/kg)
• 2000 sales were 120,000 metric tons
• Difference equals 388 million

12
Value of Exports
USMEF Estimate, 2002
13
Conclusions

• Total Exports equal 12.45/cwt (Previous
  7.83-9.66)
• Top Ten Items Represent 65 of all Beef Exports
• 60 of Value Derived from Muscle Meats, 40 from
  Variety Meats
• Total Extra Value 1.2 billion per year
• 2.79/cwt per Head Slaughtered, 33.47/Head
• Muscle Profiling