Cattle prices have reached record highs, and the cattle herd is the smallest since the 1950s. USDA predicts high domestic prices will result in increasing imports in the coming years. The U.S. is an attractive market, particularly for lean beef trimmings for ground beef. This article briefly discusses the recent spike in live animals, fresh/chilled, and frozen meat imports.
During the first half of 2024, imports of beef and live cattle soared. From January to June 2024, the U.S. imported 175,441 more head of cattle than in the same period last year, a 19% increase, reaching 1.12 million animals (Fig. 1). Over the same span, imported Fresh/Chilled and Frozen beef rose 11% and 29%, totaling 331,550 and 365,067 metric tons (MT), respectively (Fig. 1). Tight lean supplies along with high domestic beef prices help explain the growth in foreign acquisitions.
As the U.S. cattle herd declines, live animal imports have increased, mostly from Mexico (Fig. 2). Drought in Mexico and high U.S. cattle prices helped fueled more U.S. feeder cattle imports. In 2023, Mexican sales to the U.S. jumped 43%. That is 375,879 more head of cattle than in 2022. The Mexican herd has been stable recently, with FAS-PSD/USDA forecasting 0.4% growth in 2024.
Imported fresh or chilled beef has been growing over the past decade (Fig. 3). In 2023, the U.S. imported more than double the quantity it did in 2013 (Fig. 3). During this period, Canada provided, on average, half of the U.S. imported fresh/chilled meat while Mexico had, on average, 34% of market share. FAS-PSS/USDA predicts Canada stocks will drop 2% in 2024, down to 11.06 million head.
The amount of foreign frozen beef increased by 20% from 2022 to 2023, totaling 0.57 MMT last year (Fig. 3). In 2013, Australia and New Zealand each held 41% of the frozen imported beef market. However, their market shares declined to 28% and 29% over the last decade. A two-year drought (2019-20) affected Australia’s supply. Since 2020, shipments from Brazil expanded, reaching 90,303 MT in 2023, representing 16% of the market share. When China temporarily banned Brazilian beef imports in 2021, Brazil diverted its products to other countries, including the U.S. According to FAS-PSD/USDA, Brazil’s (-0.92%) and New Zealand’s (-1.66%) cattle herds are expected to decrease in 2024, while Australia’s stock is projected to increase by 4.93%.
U.S. beef imports are likely to continue ahead of last year as fewer cows are culled, and lean beef supplies continue to shrink. Drought in Mexico will be a major factor in feeder cattle imports in coming months.
Figure 1. The U.S. Total Imported of Live Animals, Fresh/Chilled and Frozen Beef, Quantity: Jan – Jun 2023 vs. Jan – Jun 2024.
Figure 2. U.S. Live Cattle Imports from Canada and Mexico, 2013-2023.
Note: Total quantity imported of live cattle other than purebred or those imported (HS code: 1022940).
Figure 3. The U.S. Total Imported Fresh/Chilled and Frozen Beef, Quantity: 2013-2023
References
FAS-PSD/USDA (2024). PSD Reports. Livestock and Poultry. Retrieved from: https://apps.fas.usda.gov/psdonline/app/index.html#/app/downloads
FAS-USDA (2024). Standard Query. Retrieved from: https://apps.fas.usda.gov/gats/ExpressQuery1.aspx
Calil, Yuri. “U.S. Beef Imports: A Quick Look at Recent Trends.” Southern Ag Today 4(35.2). August 27, 2024. Permalink
