Please Note
Because of the uncertainties associated with trade restrictions on beef products due to bovine spongiform encephalopathy (BSE) in the United States, it is assumed that restrictions remain in place until policy changes are announced. For details, USDA's Animal and Plant Health Inspection Service (APHIS) offers Animal and Animal Product Import and Export Information.
For recent trade data, see Livestock and Meat Trade
Data, which contains monthly and annual data for imports and exports of live cattle, hogs, sheep, and goats, as well as beef and veal, pork, lamb and mutton, chicken meat, turkey meat, and eggs. The tables report physical quantities, not dollar values or unit prices. Data on beef and veal, pork, and lamb and mutton are on a carcass-weight-equivalent basis. Breakdowns by country are included. For the current U.S. meat and animal trade
outlook, see the Livestock, Dairy, and Poultry
Outlook report.
Beef Trade
The United States, although the largest producer of beef in the world, is a net beef importer. Most beef produced and exported from the United States is grain-finished, high-value cuts. Most beef that the United States imports is lower value, grass-fed beef destined for processing, primarily as ground beef.
U.S. beef production hit its cyclical low in 2004, when sharply reduced cow slaughter reduced domestic supplies of processing beef and total beef imports topped 3.6 billion pounds. (See the Background chapter for information on the cattle cycle.) U.S. beef production began growing in 2005 as herd rebuilding started. Herd rebuilding was interrupted in 2006 and has continued to stall through 2008 due to widespread drought conditions and sharply higher feed costs, which resulted in increased cow slaughter. This raised domestic processing beef supplies and crowded out some imports of lean beef. Imports continued to decline throughout 2007.
U.S. beef exports had grown steadily since the early 1980s, reaching 2.5 billion pounds in carcass weight equivalent in 2003. This total represented about 9 percent of U.S. beef production. However, in December 2003, the discovery of BSE in a dairy cow which had been imported from Canada led many importing countries to either ban or restrict beef and cattle imports from the United States. Since then, the United States has reported two more cases of BSE, in cows found in Texas (initially tested in November 2004, then confirmed in June 2005) and Alabama (detected and confirmed in March 2006).
Prior to the discovery of BSE in the United States, the largest export market for U.S. beef was Japan, followed by Mexico and the fast-growing South Korean market. Canada, in fourth place, had been gradually declining in importance for several years. These four countries accounted for over 90 percent of U.S. beef exports.
Beef export patterns in 2004 were altered dramatically by the BSE situation. Japan and South Korea (and various other countries) ceased all imports of U.S. beef, while other countries reopened their borders within a matter of months. Beef exports to Mexico rebounded during the year, making it the leading destination for U.S. beef beginning in 2004. Smaller amounts of beef went to Canada, which itself had large supplies of beef following its own trade disruptions related to BSE. Exports to Japan resumed in the second half of 2006, but growth has been slow due to the restriction that U.S. beef to Japan can only come from animals 20 months of age or younger. Exports to South Korea are limited to beef from animals 30 months of age or younger.
In recent years, the significant suppliers of U.S. beef imports have been Australia, Canada, and New Zealand. Most of the beef from Australia and New Zealand goes into processed products such as ground beef. The United States also imports a significant portion of its cooked beef from Argentina and Brazil. (U.S. imports from these countries are restricted to cooked products due to disease restrictions.) Their combined share of the U.S. beef market is less than half that of the three largest exporters. In 2004 and 2005, imports from Uruguay jumped significantly, as that country joined the competition for the U.S. manufacturing beef market. U.S. imports from Uruguay have been below 2005 levels, as Uruguay began selling to other countries formerly supplied by Brazil and Argentina, whose beef exports were somewhat reduced due to disease-related problems and internal political and economic issues.
Canada reported the discovery of a case of BSE in May 2003 and since has reported several additional cases. Cattle and beef products from Canada were barred from entry into the United States after the announcement. In August 2003, beef imports from Canada resumed but were restricted to boneless products from cattle under 30 months of age. In November 2007, imports of beef from cattle over 30 months of age resumed with the restriction that imports must be from animals born after Canada's March 1997 feed ban. (BSE is believed to be transmitted by feeding products derived from infected animals, such as meat and bone meal, and the current feed ban prohibits such parts from ruminant feeds.)
APHIS provides news and documents on BSE developments.
Cattle Trade
The United States imports significantly more cattle than it exports. The countries
from which the United States imports cattle are the same ones to which
it exports cattle: Canada and Mexico. The geographical proximity of these countries
and the complementarity of their cattle and beef sectors explain why they are the
United States' only significant cattle trading partners.
U.S. cattle exports to Canada and Mexico vary from year to year in both the total volume of exports and the relative percentage exported to each country. Historically, the United States has primarily exported slaughter cattle to both countries. However, changes in Canada's policies and market situation have led to increased exports of U.S. feeder cattle. U.S. cattle exports declined in 2003 and have remained low through 2006 in response to strong domestic cattle prices and trade barriers related to BSE and other diseases. Weaker cattle prices and larger cattle supplies in Canada due to its BSE situation also reduced Canadian demand for U.S. cattle.
Cattle imports from Mexico tend to be lighter cattle for stocker operations and eventual finishing in U.S. feedlots. In past years, cattle imports from Canada tended to be animals for immediate slaughter, of which roughly two-thirds were fed steers and heifers and one-third were cows.
Imports of Canadian cattle into the United States were banned following Canada's May 2003 BSE case. In July 2005, U.S. imports of Canadian cattle resumed for animals less than 30 months of age for immediate slaughter or for finishing in a U.S. feedlot.
In July 2006, Canadian officials announced the discovery of BSE in a 50-month-old dairy cow from Alberta. The animal's birth occurred in the spring of 2002, and thus it was exposed to BSE well after Canada's feed ban was initiated in 1997.
USDA temporarily withdrew a proposal to allow the importation of Canadian cattle over 30 months of age pending the results of the investigation into the July 2006 Canadian case. However, in November 2007, USDA published a final rule in the Federal Register to allow imports of some live animals over 30 months of age and their meat products from countries recognized as presenting a minimal risk of introducing BSE into the United States. Currently, Canada is the only minimal-risk country designated by the United States. All animals born after Canada's 1997 feed ban are eligible to be imported into the United States.
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