How the US Lost Its Crown as the Largest Exporter of Meat
The US was once the world’s top exporter of beef, but in recent years it has been overtaken by other countries. What are the reasons behind this decline and what are the implications for the global meat market?
Beef is one of the most consumed and traded animal proteins in the world, with a global production of about 72 million metric tons in 2022. The demand for beef is driven by factors such as population growth, income growth, urbanization, dietary preferences and cultural traditions. However, the supply of beef is constrained by environmental, animal health, trade and policy issues that affect the production, processing and distribution of the product.
Major player in the global beef industry
The US has a long history of being a major player in the global beef industry, with a large domestic market and a strong export orientation. The US has been the largest producer of beef in the world since 1970, except for 2012 when it was surpassed by Brazil. The US has also been the largest exporter of beef in the world for most of the years since 1970, except for 2004-2005 when it was banned from several markets due to bovine spongiform encephalopathy (BSE) or mad cow disease, and 2018-2022 when it was overtaken by Brazil and Germany.
According to Statista, the US exported beef worth 9.3 billion U.S. dollars in 2022, followed by Germany with eight billion dollars and Brazil with 7.8 billion dollars. However, in terms of volume, Brazil was the top exporter of beef in 2022, with 2.6 million metric tons, followed by the US with 1.5 million metric tons and Germany with 1.3 million metric tons.
The reasons behind the decline of the US share in the global beef export market are manifold and complex. Some of the main factors are:
The rise of competitors
Brazil, Argentina, Canada, Australia and New Zealand have increased their beef production and exports in recent years, taking advantage of favorable climatic conditions, low production costs, improved animal health standards, trade agreements and market access. Brazil, in particular, has become a dominant force in the global beef market, with a large cattle herd, abundant land and water resources, low labor costs and a diversified export portfolio. Brazil has also expanded its exports to China, which is the largest importer of beef in the world.
The trade barriers
The US faces various trade barriers that limit its access to some of the most lucrative markets for beef, such as China, Japan, South Korea and the European Union. These barriers include tariffs, quotas, sanitary and phytosanitary measures, technical regulations and non-tariff measures. The US has tried to overcome these barriers through bilateral and multilateral trade negotiations, such as the US-Mexico-Canada Agreement (USMCA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the US-China Phase One Trade Agreement. However, these agreements have not yet fully delivered on their potential benefits for the US beef industry.
The domestic challenges
The US faces several challenges in its domestic beef industry that affect its competitiveness and profitability. These include high production costs, labor shortages, environmental regulations, animal welfare concerns, consumer preferences and food safety issues. The US also suffers from periodic droughts that reduce pasture availability and feed quality for cattle. Moreover, the US has experienced several outbreaks of diseases that have affected its cattle herd, such as BSE in 2003-2004, porcine epidemic diarrhea virus (PEDV) in 2013-2014 and COVID-19 in 2020-2021.
The decline of the US share in the global beef export market has significant implications for the global meat industry. On one hand, it creates opportunities for other exporters to fill the gap and increase their market share. On the other hand, it reduces the supply diversity and quality standards for importers who rely on US beef as a source of protein. It also affects the balance of trade and income for both exporting and importing countries.
The US still remains a major player in the global beef industry, but it faces increasing competition from other countries that have improved their production efficiency and market access. The US needs to address its domestic challenges and trade barriers to regain its crown as the largest exporter of meat.
The Global Beef Market: Trends and Opportunities
The beef industry is one of the most important sectors of the global food system, providing high-quality protein and essential nutrients to millions of people around the world. According to Statista, the global meat industry was valued at approximately 897.5 billion U.S. dollars in 2021, and projected to increase to almost 1.4 trillion U.S. dollars in 2027. Beef and veal accounted for about 22 percent of the global meat production in 2022, with an estimated volume of 72 million metric tons.
However, the beef market is also facing many challenges and uncertainties, such as environmental impacts, animal welfare concerns, trade disputes, consumer preferences, and health risks. In this blog post, we will explore some of the key trends and opportunities that are shaping the global beef market in 2022 and beyond.
The Top Exporters and Importers of Beef
One of the main drivers of the global beef market is international trade, which allows countries to access new markets, diversify their production, and meet the growing demand for beef products. According to Statista, the trade value of leading beef exporters worldwide in 2022 was expected to reach 41.8 billion U.S. dollars, with the United States being the largest exporter with a value of 9.3 billion U.S. dollars, followed by Germany with eight billion dollars.
Brazil was forecasted to be the biggest exporter of beef and veal in terms of volume in 2021, with an export volume of 2.6 million metric tons, followed by the United States with 1.5 million metric tons. Brazil was also one of the countries growing its exports the strongest, together with Argentina and Canada. However, Brazil has also been criticized for its cattle industry which has caused a lot of deforestation and environmental damage in the Amazon rainforest.
On the other hand, the trade value of leading beef importers worldwide in 2022 was projected to reach 44.4 billion U.S. dollars, with China being the largest importer with a value of 10.3 billion U.S. dollars, followed by Japan with 5.4 billion dollars. China was also forecasted to be the biggest importer of beef and veal in terms of volume in 2021, with an import volume of 3 million metric tons, followed by Japan with 0.8 million metric tons. China’s demand for beef has been increasing rapidly due to its growing middle class, urbanization, and dietary changes.
The Future Outlook of the Global Beef Market
The global beef market is expected to continue growing in the coming years, driven by factors such as population growth, income growth, urbanization, and changing consumer preferences. However, the market is also facing several challenges and uncertainties that could affect its performance and sustainability.
Some of the major challenges include:
- The environmental impact of beef production, which contributes to greenhouse gas emissions, land degradation, water pollution, and biodiversity loss.
- The animal welfare issues associated with intensive farming practices, such as overcrowding, stress, disease, and antibiotic use.
- The trade disputes and barriers that could disrupt the global supply chain and affect the competitiveness and profitability of beef exporters and importers.
- The consumer preferences and trends that could influence the demand for beef products, such as health awareness, ethical consumption, plant-based alternatives, and e-commerce.
Some of the major opportunities include:
- The technological innovations and improvements that could enhance the efficiency and quality of beef production, such as precision agriculture, biotechnology, genetic engineering, and blockchain.
- The market diversification and expansion that could create new opportunities for beef producers and exporters, such as emerging markets, niche segments, value-added products, and online platforms.
- The social responsibility and sustainability initiatives that could improve the reputation and image of the beef industry, such as animal welfare standards, environmental certifications, traceability systems, and corporate social responsibility.
In conclusion, the global beef market is a dynamic and complex sector that offers both challenges and opportunities for stakeholders along the value chain. To succeed in this market, it is essential to understand the current trends and drivers, as well as anticipate the future scenarios and implications.
References:
https://data.worldbank.org/indicator/BX.GSR.GNFS.CD?most_recent_value_desc=true
https://www.statista.com/statistics/917207/top-exporters-of-beef-global/
https://www.statista.com/chart/19122/biggest-exporters-of-beef/
https://www.ers.usda.gov/amber-waves/2019/july/brazil-once-again-becomes-the-world-s-largest-beef-exporter/
https://www.worldstopexports.com/top-beef-exporting-countries/
https://www.statista.com/statistics/917207/top-exporters-of-beef-global/
https://www.statista.com/chart/19122/biggest-exporters-of-beef/
https://www.ers.usda.gov/amber-waves/2019/july/brazil-once-again-becomes-the-world-s-largest-beef-exporter/
Essential Topics You Should Be Familiar With:
