NET  VALUE  OF  US  BEEF  INDUSTRY  TRADE  POSITIVE  IN  ‘09

      Every so often it is helpful to take a rather broad view of the value of imported and exported products to gain a better understanding of the international trade relationships of the U.S. cattle/beef industry.  The total value of imports and exports can be estimated from the summation of the dollar values of key trade categories, including 1) live animals (feeder, slaughter and breeding cattle); 2) meat (beef and veal); 3) hides; 4) beef tallow and greases; and 5) variety meats.

      As expected, the slowdown in the global economy and unfavorable trade conditions during 2009 impacted the dollar value of U.S. beef industry exports, which declined some from 2008.   

In 2009, the combined value of beef, cattle and beef product exports totaled $4.43 billion versus $5.67 billion in 2008 and $2.60 billion in 2004.  Compared to 2008, export values for 2009 were nearly 22 percent or $1.24 million lower, but sill rather impressive when compared to prior BSE-impacted years.  Export values posted yearly losses in every category as economic conditions weighted heavily on export demand.  The export value for hides and skins at $797.8 million in was 40 percent or $502 million lower than in 2008, while the value of variety meats at $494.3 million was $318 million less in 2009 than in 2008.  Of note, the export value for beef and veal was only about eight percent less than in 2008, but nearly 29 percent higher than 2007’s.

      In 2009, the combined value of U.S. beef, cattle, etc., imports declined rather significantly from 2008’s mostly due to a decline in the value of imported live cattle and calves.  The total value of beef, beef product and cattle imports was $3.93 billion in 2009, about $820 million or nearly 17 percent less than 2008’s and the smallest annual import value since 2003.  The value of beef and veal at $2.47 billion was 11 percent or $297 million smaller than 2008’s, while the value of live cattle and calves declined in 2009 to $1.32 billion versus $1.79 billion in 2008.

      On a value basis, the U.S. maintained its status as a cattle/beef product net exporter in 2009, a situation that was regained finally in 2008 following BSE related trade problems that began in late 2003.  In other words, the U.S. exported more beef/veal, beef products, and live cattle on a value basis than it imported in 2009.  In 2009, when all categories are accounted for, after posting a net export value of positive $2.3 billion in 2003, and a negative net export value of nearly $200 million in 2007; net export value was positive by over $500 million in 2009.  Although the net export value for 2009 was less than in 2008, the ability to remain a net exporter on a dollar value despite the global economic situation in 2009 reflects rather well on the position of U.S. beef industry products within the world marketplace.