May is Beef Month: Part 3
We conclude our deep dive into the beef industry this May Beef Month with a look at Beef Policy and Trade.
Policy
Federal government assistance provided to the cattle sector is limited to emergency measures approved for a specific scope and time period. Federal assistance addresses the needs of producers suffering losses due to drought, hot weather, disease, insect infestation, flood, fire, hurricane, earthquake, severe storms, extreme cold, or other natural disasters.
The sector trends toward fewer and large enterprises, which brings environmental issues to the forefront of public policy regarding the U.S. livestock industry. As animal density (i.e., the number of animals per unit of land area) increases, so do concerns about air and water quality, the occupational health of livestock workers, and waste management. The U.S. Environmental Protection Agency reports the environmental requirements for the production of livestock in Animal Feeding Operations.
Any product that is used as an animal-feed ingredient is regulated by the U.S. Food and Drug Administration (FDA). The FDA Center for Veterinary Medicine distributes uniform feed-ingredient definitions and feed-labeling standards to ensure the safe use of animal foods.
Cattle are also affected by other government policies and programs related to animal health, food safety, and mandatory price reporting.
Beef Trade
Exports: In 2024, U.S. beef exports slowed for the second year since setting a record in 2022. Beef exports dropped to 3.003 billion pounds, about 1 percent below 2023 levels and a 15-percent decline from the record set in 2022. The main reasons for the decline were less domestic beef production since 2022, robust domestic demand, and expensive U.S. beef prices relative to competitors in overseas markets.
In 2024, the top five U.S. beef export markets comprised 78 percent of total beef exports (by volume): Japan, South Korea, China, Mexico, and Canada. The two largest beef markets accounted for about 42 percent of U.S. beef exports (Japan and South Korea). The third largest market was China, accounting for 16 percent of beef exports. Mexico and Canada combined to account for nearly 20 percent of total U.S. beef exports.
Imports: U.S. beef imports set a new record in 2024 totaling 4.635 billion pounds, more than 24 percent above the previous record in 2023. Australia, the largest beef supplier, accounted for 24 percent of total U.S. beef imports in 2022. The U.S. second and third largest beef sources were Canada and Brazil, providing about 22 and 15 percent of U.S. beef imports, respectively. Mexico, the fourth major supplier, shipped 13 percent of U.S. beef imports. New Zealand, the fifth major source, supplied 12 percent of the U.S. beef import needs. In February 2020, the United States lifted the ban on fresh beef imports from Brazil. Since lifting import restrictions, imports from Brazil have grown more than four times.
There are specific tariff-rate quotas (TRQ) for Australia, New Zealand, Argentina, Uruguay, and other countries not otherwise listed. Specific to Australian beef, it enters the United States with no tariff and then a larger tariff of 21.1 percent is then applied to imports above the TRQ limit. All other beef imports within the TRQ enter at a minimal tariff rate of 4.4 cents per kilogram and then a larger tariff of 26.4 percent is then applied to imports above the TRQ limit. Beef imports from Canada and Mexico are exempt from the TRQ due to the U.S.-Mexico-Canada free trade agreement.
Live Cattle Trade: Traditionally, the United States imports more cattle than it exports. Canada and Mexico are the only significant cattle suppliers to the U.S. market because of their geographical proximity and because of how their cattle and beef sectors complement the U.S. sector. From 2020 to 2024, Mexico provided about 62 percent of U.S. cattle imports, and nearly all the imports were lighter-weight cattle intended for U.S. stocker or feeder operations.
Of the cattle imported from Canada over the same time period, about 75 percent were designated for immediate slaughter; on average, 63 percent of these cattle were fed steers and heifers and 37 percent were cows and bulls. About 23 percent of the cattle imported from Canada went to U.S. feedlot operations. Lastly, nearly 2 percent of cattle imported from Canada were used for breeding.
U.S. cattle exports are primarily destined for Canada and Mexico, but the volume exported and the relative percentages exported to North America and other destinations can vary year to year. From 2020 to 2024, the United States has primarily exported feeder cattle to both Canada (79 percent) and Mexico (12 percent), in addition to some breeding cattle. However, new markets for U.S. dairy and beef cattle for breeding have emerged the last 5 years. These markets include Vietnam, Turkey, Pakistan, Saudi Arabia, and Thailand.
Upcoming Events
May 21--SW VA 4-H Tractor Club Meeting 6 p.m., Extension Office.
May 25--Marion Memorial Day Parade.
June 1-5--Smyth County 4-H Camp.
June 11-13--OGATA Summer Show, Abingdon.
June 16-19--State 4-H Congress.
July 7--VQA Sale.
July 13--VQA Take Up YBD.
July 25--RV Fair Livestock Day
Aug. 4 Tri State Beef Conference.
Aug. 6 Tractor Trip to Benham, Ky.
Aug. 18--VQA Sale.
Aug. 24--VQA Steer Take Up.
Aug 26--VQA Heifer Take Up.
Aug. 27--Hay and Forage Field Day.
Dr. Andy Overbay is the agriculture and natural resources extension agent for Smyth County.
