Beef Production Shrinks While Demand Grows

U.S. beef production is expected to decline 2.5% in 2022 while U.S. beef exports will increase 2% to 4%, according to a report by Robobank. The production decline is attributed to poor economics and drought liquidation across the western region. Traditional export markets like Canada, Japan, Mexico and South Korea should remain strong, with China (now the third largest beef export market) responsible for the increased demand.

The U.S. cow slaughter is expected to continue, meaning the U.S. beef production decline and tightening market may persist until 2023 or beyond.

Read more about the forecast of U.S. beef imports and exports.