by Nancy Carver Singleton

U.S. beef exports hit an all-time dollar value high in 2003 before the country’s first case of mad cow disease led to export bans.

The 1,276,446 metric tons of beef exported last year was three percent higher than the previous year, and was exceeded only by 2000 exports. The real increase though came in the dollar value of those exports, which were almost $3.9 billion in 2003, a 21 percent increase over the previous year and a new record.

There was concern that higher domestic beef prices might decrease exports, said Lynn Heinz, vice president of information for the U.S. Meat Export Federation. “But the weaker dollar combined with strong demand caused volume to be up slightly and the dollar value to be up substantially.”

For example, South Korea bought four percent more U.S. beef than in 2002, but paid 26 percent more. Taiwan, which increased its U.S. beef purchases by three percent, spent 36 percent more. “Our field people kept saying, ‘Any minute they (Taiwan) are going to stop buying because the price is getting too high.’ Interestingly, as our product moved higher and higher, they kept buying,” Heinz said.

Many expected U.S. beef exports to Canada to drop sharply after mad cow disease was discovered there last year. But muscle meat exports there were down only four percent and variety meats exports were down 21 percent in 2003. Heinz speculated that some U.S. variety meat purchased there for ground and processed meat products was instead replaced by the oversupply of Canadian beef.

U.S. beef exports are 40 to 70 cents a pound higher than the value of cuts this country imports. Canadian and Australian beef is primarily purchased by U.S. food companies for ground and other processed meat products, he said.

The U.S. beef cuts with highest export volume include short plate, short rib, tongue, skirt, chuck roll, liver and tripe. These cuts are substantially more popular in other countries than they are in the United States. For example, figures from the export federation show that short ribs are usually used for trim in the United States and has a domestic value of 37 cents a pound. However, its export value is $2.20 a pound.

Before the case of BSE was discovered, export officials projected a five to seven percent increase in beef export volume for 2004, Heinz said. Sixty countries banned U.S. beef following the announcement that a Washington cow had mad cow disease.

Heinz, who returned in late March from a three-week trade mission overseas, said there are favorable signs Taiwan will allow some beef exports soon. He also noted that important first steps have been taken in negotiations with China, Japan and Russia.

Mexico, the second largest buyer of U.S. beef in 2003, partially lifted its ban on imports of U.S. beef in early March. It allows boneless cuts from animals less than 30 months old and veal from animals less than 9 months old into the country. Heinz noted that Mexico is the largest customer for U.S. variety meats, purchasing 142,000 metric tons in 2003.

This was double the amount of variety meats purchased by Japan, the largest overall buyer of U.S. beef, or by Russia. “Mexico is a huge market for us and one we are working very hard to regain,” Heinz said. ©