US beef production projected to contract during 2022

According to Rabobank’s Q4 Beef Report, even with US cow slaughter increasing by 6%, production will be down 2.5% in 2022. Rabobank said drought and grazing conditions have improved but feed and hay supply remains limited. However, exports of US beef are expected to be resilient throughout next year. “Markets in Japan, South Korea, Mexico, and Canada remain strong, but the growth in exports to China is driving the increased export volume,” said Angus Gidley-Baird senior analyst of Animal Protein at Rabobank. “China has become the third-largest export destination for the US, and export volumes continue to rise.” The report added that US imports of beef could increase with the contraction in production. But with cow slaughter still at a high level, imports of lean manufacturing beef from countries like Australia and New Zealand will still be limited due to a drop in volume last year. Rabobank also noted that imports from Brazil increased by 61% during the first nine months of 2021. ...