It was a full house for the CattleFax Annual Outlook Seminar this morning in Denver, showing how important future trends in weather, prices, grain markets and exports are to members of the National Cattlemen’s Beef Association.
According to CattleFax market analyst Brett Stuart, global beef demand is increasing alongside tighter world beef supplies.
“2011 will be the fourth consecutive year of global beef production declines,” said Stuart. “This will not correct quickly. We will see very tight supplies moving forward.”
A major contributing factor to increasing demand comes from outside the borders of the United States. Stuart said business in the international marketplace is growing quickly as improvements to infrastructure and logistics are made. Beef exports are witnessing substantial growth with 75 percent of all U.S. beef exports going to Mexico, Canada, South Korea, Japan and Vietnam.
“Korea is very aggressively buying beef from the United States,” said Stuart, adding that the foot and mouth disease issue is causing substantial reductions in Korea’s domestic meat supplies. “Last week we had outstanding sales to Korea at 24,000 tons, which is up from 9,000 tons a year ago.”
Stuart projects the increasing demand from outside the United States will continue the upward trend. He suggested an 8 percent to 10 percent increase in U.S. beef exports in 2011 compared to last year. He said it could even surpass his expectation.
“I am not saying exports will be up 18 percent (from 2010), but I’m not saying they won’t be,” he said.
Listen or download Stuart’s presentation here: CattleFax's Brett Stuart
2011 Cattle Industry Convention Photos
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