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Home > News > NCBA News > NCBA & Policy News Archive > 1998 News Archive Printer-Friendly Version      
1998 News Archive

 

BACKGROUNDER: BEEF INDUSTRY TRADE

 

There has been a lot of discussion recently about the impact of trade on the beef industry. Some have expressed concern about the impact of NAFTA on the U.S. market. Most of the increase in trade flows between North American trading partners can be traced to the implementation of the U.S./Canada Free Trade Agreement in 1989 and NAFTA in 1994. The elimination of most tariffs on trade in live cattle, beef and beef by-products under those agreements has resulted in increased trade between the U.S., Canada, and Mexico.

Many factors influence the volume of exports and imports. In 1998, the most significant factor has been the strength of the U.S. dollar which has resulted in more U.S. beef imports. Compared to a year ago, the U.S. dollar has risen 28% against the New Zealand dollar, 20% against the Australian dollar and 8% against the Canadian dollar. The increase in the value of the dollar relative to Asian currencies and the economic crisis in Asia have made it more difficult to export U.S. beef and beef by-products to Asia.

The value of U.S. live cattle and beef exports has grown from $589 million in 1985 to $2.674 billion in 1997. The U.S. is a net exporter of beef, live cattle, variety meats and by-products on a value basis. The trade surplus (exports minus imports) for beef, live cattle, beef variety meat and beef by-products was $1.8 billion in 1997.

Net imports of beef and live cattle on a volume basis in 1996 and 1997 were the lowest since the mid-1960’s.

Trade policy is a high priority for the National Cattlemen’s Beef Association. NCBA is working to:

  • Pass legislation in Congress to implement import labeling and to require price reporting of all boxed beef prices and price and volume information for all beef exports and imports.
  • Keep illegal Australian feeder cattle from entering the U.S. through Mexico.
  • Coordinate with USDA and the U.S. Trade Representative to ensure that Korea lives up to its import commitments.
  • Secure funding for the International Monetary Fund to stabilize the Asian economies.
  • Reduce trade tariffs for beef sold to China.

Recent trade successes include:

  • Secured a pilot agreement with Canada to allow more imports of U.S. feeder cattle.
  • Won a World Trade Organization case against the European Union regarding the unfair trade barrier on U.S. beef. NCBA continues to pressure the European Union to abide by the ruling.

In addition, the Meat Export Federation has used beef checkoff dollars in marketing programs that have dramatically increased U.S. beef exports.


Import and Export Fact Sheet
All tonnage figures are carcass weight equivalent

Imports from Canada

Imports from Mexico

U.S.
Average
Carcass
Weight
(lbs)

Live
Cattle

Imports
from
Canada
(head)

Live
Cattle
Beef

Equiv-
alent
(mil lbs)

Beef
Product
Imports
from
Canada
(mil lbs)

Total
Beef

Imports
from
Canada
(mil lbs)

Live
Cattle

Imports
from
Canada
(head)

Live
Cattle
Beef

Equiv-
alent
(mil lbs)

Beef
Product
Imports
from
Mexico
(mil lbs)

Total
Beef

Imports
from
Mexico
(mil lbs)

1985

649

338,320

220

240

460

476,478

309

n/a*

309

1986

649

227,538

148

213

361

1,155,931

750

n/a*

750

1987

657

244,710

161

191

351

934,932

614

n/a*

614

1988

668

476,707

318

172

490

841,285

562

n/a*

562

1989

678

574,788

390

239

629

873,388

592

n/a*

592

1990

681

854,468

582

222

804

1,261,107

859

n/a*

859

1991

697

904,688

631

223

854

1,034,185

721

n/a*

721

1992

699

1,270,556

888

321

1,209

981,719

686

n/a*

686

1993

688

1,202,271

827

407

1,235

1,296,609

892

n/a*

892

1994

709

1,010,299

716

463

1,179

1,072,126

760

n/a*

760

1995

705

1,132,691

799

446

1,244

1,653,408

1,166

n/a*

1,166

1996

695

1,509,136

1,049

586

1,635

456,246

317

n/a*

317

1997

700

1,376,814

964

711

1,675

669,409

469

n/a*

469


Imports from other countries

Import summary

U.S.
Average
Carcass
Weight
(lbs)

Live
Cattle

Imports
from
Australia
(mil lbs)

Beef
Product
Imports
from New
Zealand
(mil lbs)

Beef
Product
Imports
Other
(mil lbs)

Total
Beef

Imports
from
Live

Cattle
(mil lbs)

Total
U.S.
Beef
Imports

(mil lbs)

Total
Beef

Imports
from
All

Sources
(mil lbs)

1985

649

795

516

539

529

2,091

2,619

1986

649

947

509

487

898

2,156

3,054

1987

657

997

613

493

775

2,294

3,069

1988

668

1,081

641

511

880

2,406

3,286

1989

678

818

658

462

982

2,178

3,160

1990

681

1,084

578

471

1,441

2,356

3,797

1991

697

1,048

636

499

1,351

2,406

3,758

1992

699

1,012

639

468

1,574

2,440

4,014

1993

688

906

562

526

1,719

2,401

4,121

1994

709

876

528

504

1,476

2,371

3,847

1995

705

670

579

408

1,964

2,103

4,068

1996

695

545

504

438

1,366

2,072

3,438

1997

700

639

576

416

1,432

2,343

3,775


Live cattle exports

Exports to various countries

Total
U.S.
Live
Cattle
Exports
(head)

Live
Cattle

Beef
Equiv-
alent
(mil lbs)

U.S.
Beef

Product
Exports
to
Canada
(mil lbs)

U.S.
Beef

Product
Exports
to
Mexico
(mil lbs)

U.S.
Beef

Product
Exports
to
Japan
(mil lbs)

U.S.
Beef

Product
Exports
to S. Korea
(mil lbs)

U.S.
Beef

Product
Exports
to
Other
(mil lbs)

1985

124,714

81

25

5

260

3

39

1986

107,847

70

20

1

354

1

149

1987

130,698

86

37

11

397

1

166

1988

321,449

215

53

37

503

16

80

1989

169,140

115

98

75

716

58

76

1990

119,914

82

191

73

574

98

70

1991

310,962

217

259

173

534

150

73

1992

321,790

225

249

195

629

165

86

1993

153,416

106

244

120

720

116

76

1994

230,791

164

286

223

832

177

92

1995

94,548

67

312

92

1,004

272

140

1996

174,307

121

295

172

1,016

204

191

1997

280,344

196

282

312

1,053

261

221


Export summary

Total
Beef
Exports
from
Live
Cattle
(mil lbs)

Total
U.S.

Beef
Product
Exports
(mil lbs)

Total
Beef
Exports
from
All
Sources
(mil lbs)

Net
Beef
Imports
from
All
Sources
(mil lbs)

Imports
from
Canada

as % of
Total U.S.

Exports
(pct)

1985

81

332

413

2,207

111%

1986

70

526

596

2,458

61%

1987

86

611

697

2,372

50%

1988

215

690

905

2,381

54%

1989

115

1,023

1,137

2,023

55%

1990

82

1,006

1,088

2,709

74%

1991

217

1,189

1,405

2,353

61%

1992

225

1,324

1,549

2,465

78%

1993

106

1,275

1,381

2,740

89%

1994

164

1,611

1,774

2,073

66%

1995

67

1,821

1,887

2,180

66%

1996

121

1,878

1,999

1,439

82%

1997

196

2,130

2,326

1,449

72%


U.S. beef imports by country (mil lbs)
Canada and Mexico totals include beef equivalent from live cattle imports

Canada

Mexico

Australia

New
Zealand

Other

Total

1985

460

309

795

516

539

2,619

1986

361

750

947

509

487

3,054

1987

351

614

997

613

493

3,069

1988

490

562

1,081

641

511

3,286

1989

629

592

818

658

462

3,160

1990

804

859

1,084

578

471

3,797

1991

854

721

1,048

636

499

3,758

1992

1,209

686

1,012

639

468

4,014

1993

1,235

892

906

562

526

4,121

1994

1,179

760

876

528

504

3,847

1995

1,244

1,166

670

579

408

4,068

1996

1,635

317

545

504

438

3,438

1997

1,675

469

639

576

416

3,775


U.S. beef exports by country (mil lbs)

Canada

Mexico

Japan

South
Korea

Other

Live
Cattle

Total

1985

25

5

260

3

39

81

413

1986

20

1

354

1

149

70

596

1987

37

11

397

1

166

86

697

1988

53

37

503

16

80

215

905

1989

98

75

716

58

76

115

1,137

1990

191

73

574

98

70

82

1,088

1991

259

173

534

150

73

217

1,405

1992

249

195

629

165

86

225

1,549

1993

244

120

720

116

76

106

1,381

1994

286

223

832

177

92

164

1,774

1995

312

92

1,004

272

140

67

1,887

1996

295

172

1,016

204

191

121

1,999

1997

282

312

1,053

261

221

196

2,326


U.S. beef import and export summary (mil lbs)

Total
Beef
Imports

Total
Beef
Exports

Net
Beef
Imports

1985

2,619

413

2,207

1986

3,054

596

2,458

1987

3,069

697

2,372

1988

3,286

905

2,381

1989

3,160

1,137

2,023

1990

3,797

1,088

2,709

1991

3,758

1,405

2,353

1992

4,014

1,549

2,465

1993

4,121

1,381

2,740

1994

3,847

1,774

2,073

1995

4,068

1,887

2,180

1996

3,438

1,999

1,439

1997

3,775

2,326

1,449


Import and export value factsheet

Total
Beef and
Live Cattle
Export
Value
($ mil)

Total
Beef and

Live Cattle
Import
Value
($ mil)

Trade
Surplus
(Deficit)
($ mil)

Total Beef,
Live Cattle

Byproduct
and Hide
Export
Value
($ mil)

Total Beef,
Live Cattle
Byproduct
and Hide
Import
Value
($ mil)

Trade
Surplus
(Deficit)
($ mil)

1985

$589

$1,583

($993)

$2,397

$1,612

$785

1986

$745

$1,730

($984)

$2,605

$1,752

$853

1987

$876

$1,984

($1,107)

$2,884

$2,003

$881

1988

$1,311

$2,278

($966)

$3,683

$2,306

$1,377

1989

$1,527

$2,302

($775)

$3,577

$2,351

$1,226

1990

$1,669

$2,840

($1,171)

$3,604

$2,890

$714

1991

$1,945

$2,913

($968)

$3,749

$3,004

$745

1992

$2,236

$3,123

($887)

$4,157

$3,240

$916

1993

$2,119

$3,276

($1,157)

$3,967

$3,408

$559

1994

$2,489

$2,950

($461)

$4,477

$3,095

$1,382

1995

$2,733

$2,860

($127)

$5,227

$3,000

$2,227

1996

$2,543

$2,462

$80

$4,767

$2,608

$2,158

1997

$2,674

$2,734

($60)

$4,718

$2,898

$1,820

Source: USDA
Note: All totals include beef equivalent of live cattle trade.Live imports converted to beef equivalent using USDA all cattle carcass weights.

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