Top Destinations For US Beef At Risk From Trade Disruptions

CoBank Reports that four of five top destinations for U.S. beef are at risk of trade disruption.  According to a new report from CoBank’s Knowledge Exchange Division, while the U.S. beef industry is well positioned to capitalize on a growing global middle class and an improving economy, trade uncertainty could hamper the U.S.’s ability to capture market share in the coming years.  Trade deals being negotiated or recently approved include the TPP, NAFTA, and KORUS, and are either being renegotiated or the U.S. has dropped out of the agreement altogether.

CoBank analyst Trevor Amen says the top five markets, Canada, Mexico, Japan, South Korea and Hong Kong, represent approximately 80% of U.S. beef exports.  Of those trade partners, only Hong Kong will be unaffected by current trade pact negotiations.

“It’s critically important to maintain a competitive access to those markets, maintain that volume, and also look at other countries for opportunities or growth.  Now, China represents the greatest opportunity especially in in the mid to long-term, they are the fastest growing beef importer in the world.”

With beef production increasing, he says the U.S. needs access to competitive markets.

“We know that the demand is going to be there, we just need access to those markets, and competitive access to hold our position as the number one beef producer in the world and take advantage of that demand opportunity  in the future.”

Again, that’s Trevor Amen, an industry analyst with CoBank’s Knowledge Exchange Division.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com