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US Beef Trade Finds Opportunity In The Wake Of The Australian Pull Back

Despite all the negatives being talked about in beef trade, there are still some silver linings. Jim Robb of the Livestock Market Information Center says the export marketplace and especially the drop credit market, is doing especially well. He attributes this to the fact that more total pounds of beef can enter the global market, frankly because of the low prices. Farm Director Ron Hays spoke with Robb about what he’s seeing unfold in the beef trade these days.




“There’s a little bit of demand improvement in the export markets and that’s partly due to the Australian situation as they have really pulled back their slaughter levels,” Robb said. “So their exports have dampened and - have really opened the door for more US exports. That’s something we are getting some year-over-year increases.”


Drought down under seems to be the reason behind Australia’s pull back. For the US, though, it comes as a welcomed opportunity as an increasing beef supply will allow the US the ability to handle growing export demand. However, Brazil and India look to be positioning themselves as competitors in the wake of Australia’s reversal, which is expected to continue into 2017.
 

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