U.S. Beef Production:
There are approximately 800,000 ranchers and cattlemen in the United States, conducting
business in all 50 states and contributing economically to nearly every county in the
nation. In 2003, U.S. cash receipts from livestock and livestock product marketing was
forecasted to total $98.3 billion – almost half of the total forecasted for all farm cash
receipts in 2003 ($202 billion). The cattle industry is a family business. Eighty percent of
cattle businesses have been in the same families for more than 25 years; 10 percent for
more than 100 years.
On Jan. 1, 2004 there were 94.9 million cattle in the United States, 1.3 percent less than a
year earlier. U.S. beef production is also down, with January through September
production this year falling 9 percent behind production during the same time last year.
Total beef production during 2003 was 26.2 billion pounds (35.5 million head of cattle).
In 2003, cattle averaged about 1,234 lbs. before harvest. The 2003 average carcass weight
was 746 lbs., which translates into about 522 lbs. of beef.
Consumer Confidence/Demand:
Consumers remain confident in the safety of U.S. beef and demonstrate this confidence
with heightened demand for beef. A year later, 90 percent of consumers remain confident
in the safety of U.S. beef. In the first three months after the December 23, 2003
announcement, demand for beef actually increased 9.68 percent. Demand for beef has
increased nearly 20 percent since 1998.
Beef Consumption:
Beef is the number one protein in America according to 2003 USDA consumption data
and the demand for beef continues to grow. Beef dollar sales in 2004 are projected to be
the largest on record. The bottom line is consumers are willing to pay more for the beef
they love. Consumer spending on beef has grown about $25 billion compared to the
1990s, according to Cattle-Fax.
BSE and the U.S. Beef Industry:
Even though nearly one-quarter of the U.S. export market value has been recovered, the
U.S. beef industry has experienced significant loss during the six months since the
December 2003 U.S. diagnosis of bovine spongiform encephalopathy (BSE). Industry
experts estimate BSE has cost the U.S. cattle industry approximately $3 billion dollars in
lost export value on beef, beef variety meats, hides and tallow.
U.S. Beef Exports:
The United States traditionally exports about 10 percent of production but when the first
U.S. case of BSE was diagnosed in an imported Canadian Cow on December 23, 2003,
most major export markets closed. In 2003, U.S. beef and beef variety meat exports
totaled 1.28 million metric tons valued at $3.86 billion. Traditional primary export
markets Japan, Mexico, the Republic of South Korea and Canada accounted for nearly 83
percent of export volume and 88 percent of export value in 2003. Industry experts agree
the total value of the U.S. beef and beef variety meat export market equates to
approximately $15/cwt. or 12 percent of an $85/cwt. fed steer.
As of October 1, 2004, the United States had re-established beef exports with countries
that in 2003 accounted for $1.2 billion or 33 percent of the record $3.86 billion in beef
and beef variety meat exports in 2003. With nearly one-quarter of trade re-established,
roughly $3/cwt. (live weight) of the $15/cwt. in export value has been returned to the
market place.
Updated: December 20, 2004