Demand and production for beef may rise this year, but trade remains a wildcard that poses risks to the beef export market, according to a new report by CoBank. The report says trade uncertainty could hamper the U.S.’s ability to capture market share in the coming years. CoBank says 80 percent of beef exports are sold to countries that could be affected by ongoing trade pact negotiations.
Japan, South Korea, Mexico, Canada and Hong Kong top the list of countries importing beef from the U.S., representing 83 percent of all U.S. beef exports. Of these trade partners, only Hong Kong will be unaffected by current trade pact negotiations.
Competing exporters that are part of the Trans-Pacific Partnership will gain preferential access to Japan. Exports to Mexico and Canada are at risk with the North American Free Trade Agreement. Beef trade with South Korea could decline if the U.S.-Korea Free Trade Agreement, KORUS, is renegotiated, according to the report.
From the National Association of Farm Broadcasting News Service.