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Does the Import/Export Market Help the US Beef Producer?
March, 2020
Bridget Stice, UF/IFAS Extension Polk County
Striking a balance
Oklahoma State University livestock economist, Derrell Peel, says, “Exports and imports help sort out the complex set of beef products in domestic and international markets to maximize the value to U.S. beef producers.” The quantity of beef that the US imports (lbs) is usually greater than what it exports. But the value ($) of beef exported greatly exceeds the value of imported beef. UF/IFAS Beef Economist, Chris Prevatt, expects lbs of beef exported to exceed imports in 2020.
U.S. beef producers receive about $300/head in additional premiums as a result of export values in fed cattle. According to Prevatt, the cow-calf producer receives approximately $24/cwt in added value to feeder calves as a result of U.S. beef exports.
The importance of imported trimmings
Peel suggests that, without imported beef trimmings, one of several outcomes would impact the beef industry:
- Less ground beef would be produced, reducing the value of the nearly 150 pounds of fed trim from each carcass;
- Approximately 10 to 15 percent of steers and heifers would need to be raised and slaughtered as non-fed beef for lean – similar to Australian range beef – and would be valued roughly the same as cow carcasses; or
- Additional lean from fed carcasses could be ground for hamburger rather than being used for whatever higher value it currently might possess.
Beef imports are an essential compliment to U.S. beef production by improving product utilization in the U.S. and increasing the total value of production across all sectors of the beef industry.