Watch Exports, Domestic Consumption for Beef Market Direction in 2021

The beef sector has had a wild ride in 2020, but the good news for producers is the disruptions caused by the COVID-19 pandemic starting in the second quarter have largely been resolved, namely at at the processor’s level. By October, the pace of animal processing had actually moved beyond 2019 levels after being sharply curtailed by the virus in March and April, according to a USDA market analyst. That contributed to the highest per-capita disappearance of beef in the marketplace in 10 years, with domestic consumption and exports contributing to the high numbers. To help satisfy domestic demand, U.S. companies also imported a record amount of beef in September 2020, with the bulk of that coming from Argentina, Uruguay and New Zealand. While exports fell to trading partners like Mexico, sales to China helped make up for those losses. Looking ahead, USDA market analysts expect essentially unchanged beef export numbers for 2021. See more of the latest USDA analysis.