Global market explanation

[JMJ Farms]

I consider myself to be fairly intelligent. But far from a genius. Make sense so far?

Can someone explain to me, in layman's terms, why the global export market (namely China and cattle exports) is so influential on cattle prices?

Basic economics and common sense tells me that...

1) The USA has more domestic supply than domestic demand. Therefore, we need to export the excess supply.

2) BUT, we in turn import foreign beef for domestic consumption.

This is not some kind of loaded question or a fishing expedition. I'm dead serious. Maybe it's just over my head or I'm too simple minded. Obviously the consumer wants cheap beef, regardless of how the cattlemen make out. But is it really cheaper, smarter, or more beneficial to export supplies of domestic beef to other countries and then turn around and import foreign beef? What am I missing?

 

[sim.-ang.king]

A pound of beef in brazil sells for two bits, a pound of beef in the US sells for $4.

Get the connect yet as to why imports out weigh exports?

 

[True Grit Farms]

NCBA is not the US producer's friend in the cattle business. China isn't and hasn't been a player in US beef for 14 years, it's all bs and there's nothing we can do but suck it up. Brazil is going to infect US with hoof and mouth disease. Fact is JBS is crooked but we still let them import meat into the US. You think it's bad now wait till we get FMD in our herd thanks to imported meat.
http://www.usmef.org/news-statistics/me ... tand-8825/

 

[bird dog]

Export offal and good quality steaks. Import burger.

 

[NoRest Farm]

The US has a better quality product. So some of that is exported and low quality beef is imported to fill that market.

 

[CattleMan1920]

Lawmakers, for the most part, will not support COOL (Country of Origin Labeling). The demand for cheap meat is strong, and the profit motive is even stronger for those who import it. I personally like to know where my food comes from but many people could care less and the corporations know this and use it to their advantage. Check your representative's record for voting on COOL and you will be surprised just how much he or she truly supported the local beef producer.

Also, if you picked up a package of hamburger at the grocery, would you rather see "product of U.S.A. and raised and processed in U.S.A." or would you rather see "Product of Brazil, Mexico, India, or not really sure where it was all raised, but it was PROCESSED in the good ole U.S. of A." I prefer the first one, and it's far better for the U.S. beef producer in my opinion.

I'm not being a protectionist, but I think that the U.S. has a very good beef industry and should draw on it, versus cheap inferior imports with little to no controls in place.

 

[mwj]

Burger rules in beef sales. Lean trim is imported to use the fat trimming from those choice and prime cattle that produce the high quality steaks we love.

 

[Stocker Steve]

Can someone explain to me, in layman's terms, why the global export market (namely China and cattle exports) is so influential on cattle prices?

1) We like to burn up organic matter to overproduce grain
2) We get rid of some surplus grain by feeding it to ruminant cattle till they are ill
3) We then overproduce many beef cuts because we prefer to eat a lot of cheap burger and pizza
4) We try to export the surplus beef cuts and organs to keep prices up
5) China is out favorite place to send **** because they used to generate about half of the economic growth on this planet
6) Before the embargoes - - we exported about 13% of our beef and 60% of our soybeans

 

[BC]

From the daily "The Cattle Report" under Beef Demand section ( http://www.agcenter.com/newcattlereport.aspx ).

"Exports reached the highest level in years in 2018 as the U.S. found increasing demand for quality, safe, American beef. Japan set to import records for American beef and Mexico re-established beef channels linked to our production. Korea continued to increase imports of our beef and smaller inroads were made with other trade partners.

No story of exports is complete without an analysis of our trade relationship with China. Since the beginning of the century, beef consumption has increased 67% in China but beef still represents only10% of their meat consumption. A growing middle class is interested in more meat and more affluence means more beef. China has been a consumer of pork as the primary meat with pork consumption representing over 60%of all meat consumption. African Swine Fever is a real and expanding threat to pork supplies in China. Just this past week, the fever was found in one of the largest hog operations in China where 400,000 pigs are produced each year. The entire population of each contaminated farm will be eliminated to slow the spread of the disease.

As the virulent virus spreads and threatens more hog production, the question of how the meat will be replaced? More pork imports will be an option but also substitution of beef might fit nicely into the plan. Beef currently enters China mainly through Hong Kong and illegally through Viet Nam. Animal identification and trade negotiations could open the doors for beef to replace a lot of the lost pork production. "

 

[shaz]

I was in Japan a few years ago and checked out a beef website importing beef to Japan. On this website was information about what country the beef came from and what to expect. US vs Australia vs India and so on. The US beef was the highest but the website touted it as the best.

 

[Redgully]

Try being a country where gas and mining are your main exports. Free trade is basically, we will take anything you want to send here if you take our iron ore. For a country that used to have minimal pest and diseases we are fast becoming a country full of pests and diseases.