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 International
Meat Trade Not Too Complicated
By
Aimee Nielson
LEXINGTON, Ky., (Sep. 13, 2006) – The food system in the United
States is complex and most consumers, even many livestock
producers, don’t fully understand the international meat trade
system. But, University of Kentucky College of Agriculture
Economist Lee Meyer said the system doesn’t have to be so
complicated with the understanding of a few simple facts about
beef, pork and chicken imports and exports.
“Chicken is the simplest,” he said. “The U.S. Department of
Agriculture says this year we will probably export about 15
percent of the chicken produced in the United States. The amount
sent overseas really hasn’t changed that much in recent years,
ranging from about 14 to 18 percent.”
Russia is the largest buyer of U.S. poultry, although arbitrary
changes in Russian import policies make the trade levels bounce
from year to year. China and Mexico are also large buyers.
Although Brazil is the third largest poultry producer, behind
the United States and China, it is the largest exporter.
“Outbreaks of Avian Influenza really have changed trade patterns
in poultry lately,” Meyer said. “An outbreak in southeast Asia
in 2003 increased demand for broiler meat from the United States
and Brazil, but hurt exports from Thailand.”
The export percentage for pork is about the same as for chicken
– about 15 percent. However, Meyer said the complicating factor
for pork is that we also import an amount equal to five percent
of U.S. production. Exports have had a very positive economic
impact on the hog production system in the United States and
thus, exports have been a boon market for the pork industry. The
United States also imports pork and live hogs from Canada.
“With an open trade border, live hogs produced in Western Canada
can be processed in the Western and North Central United States,
while pork for Eastern Canada can be supplied by processors in
the Great Lakes region of the United States,” Meyer explained.
Meyer added that beef trade is interesting because the United
States buys and sells large quantities of beef and cattle
products.
“Traditionally we have imported about 12 percent of our
production and exported about eight percent,” he said. “In other
words, we buy substantially more than we sell. This makes sense
because we don’t buy and sell the same thing. We export high
quality beef cuts and cuts not commonly eaten in this country
and we import lean beef for hamburgers.”
As a result, the value of what we sell to countries like Japan,
Mexico and Canada usually is much greater than what we buy from
Australia, Canada and South American countries, Meyer continued.
Beef trade dramatically changed from 2002 to 2003 when bovine
spongiform encephalitis was found in Canada and then in the
United States.
“Because of that, we now buy more of our beef from other
countries, up to 15 percent, and export only three percent of
our production,” Meyer said. “Most of the exports go to Mexico
and Canada. Negotiations in Japan recently have been successful
in settling an import dispute and we are now resuming selling
beef exports to Japan and expect to with South Korea in the next
few months.” |
Contact: Lee Meyer
859-257-7272, ext. 228 |
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