US moves towards global beef exports leadership

Closely competing with Brazil, the United States keeps breaking records and slowly taking the global beef exports leadership. The country is, for now, the leader only in terms of revenue.

Even if we ignore the 7% drop in volume exported in Brazil between September and mid-December due to China’s ban on beef exports from the South American country, the numbers show that Brazil can still be the second-largest exporter.

Selling more expensive meat to markets that pay better is the American recipe for success, considering that the country ships less beef than Brazilian exporters.

Last year, the United States exported 1.440 million tons, up 15% from 2020, and imported US$ 10.58 billion, up 38% considering only fresh meat.

Brazil, on the other hand, exported 1.867 million tonnes and brought in US$ 9.236 billion, up 9%, including processed and fresh beef.

USDA data, when compared to Brazil’s 2020, is also revealing. The country exported more than 2 billion tonnes and received US$ 8.4 billion over 2019.

In 2021, American meatpackers such as Tyson foods gained more access to China. The Brazilians also gained some leverage after the Phase 1 trade agreement, which eliminated part of the import tariffs from companies like JBS and Mafrig.

Even though China and Hong Kong spend significantly more on US beef than Brazilian beef, the real comparative advantage is in Japan and South Korea. Korean purchases increased by 14% to US$ 2.382 billion, or 280.1 thousand tonnes (38% more).

The leading importer, Japan, bought 320.7 thousand tonnes, up 5%, yielding a revenue worth US$ 2.376 billion, up 22% year-on-year.

Amid beef supply problems – hence the fact that beef imports are also rising – and in a year still affected by the pandemic, the statistics show that the United States is putting up a good fight at the race for the global beef exports leadership.

Source: Money Times

To read the full original article, please access:

https://www.moneytimes.com.br/eua-caminham-para-a-lideranca-global-em-exportacoes-de-carne-bovina/

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