Dr. Derrell Peel on How the Beef Trade Shock Waves Continue
Oklahoma Farm Report
14 Sep 2020
Mondays, Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his economic analysis of the beef cattle industry. This analysis is a part of the weekly series known as the "Cow Calf Corner" published electronically by Dr. Peel and Dr. Glenn Selk. Today, Dr. Peel talks about how the beef trade shock wave continues.
The dramatic beef production disruptions in the second quarter continued to be reflected in the latest data for July. Beef exports, which dropped 31 percent year over year in May and 33 percent in June, increased sharply from June to July but remained 8 percent lower year over year. The weekly data suggests that exports continued to recover in August, likely up year over year.
July beef exports to Japan were down just 2.0 percent year over year and remain 4.3 percent higher for the year to date through July. Beef exports to South Korea were down 3.9 percent year over year in July and are down 6.8 percent for the year to date. Japan and South Korea are the two largest beef export markets and represent 54.4 percent of total beef exports for the first seven months of 2020. Canada is now the number three beef export market with July exports up 10.7 percent year over year and year to date exports up 11.8 percent. Mexico has dropped to number four with exports down 51.7 percent in July compared to last year and down 39.8 percent so far in 2020. Beef exports to Hong Kong were up 14.7 percent in July but are down 5.0 percent for the year to date. July exports to Taiwan were up 8.5 percent year over year but are down 4.7 percent for the year through July. Hong Kong and Taiwan each represent 6.7 percent shares of total year to date beef exports. Beef exports to China in July were up 125.9 percent over last year and are up 81.5 percent year over year for the year to date. China represents 1.6 percent of total beef exports so far in 2020.
Beef imports spiked higher in July, up 41.1 percent year over year and pushing the year to date total...