Please note
The discovery of bovine spongiform encephalopathy (BSE, or mad cow disease) in a dairy cow in Washington State in December 2003 has caused importing countries to either ban or restrict beef and cattle imports from the United States. Due to the uncertainties associated with these bans, it is assumed that these restrictions will remain in place until importing countries announce a policy change. For the most current U.S. meat and animal trade outlook, see the Livestock, Dairy, and Poultry Outlook report.

Annual trade statistics reported here are finalized each spring. In addition, recent trade data are presented for major meats and livestock on a monthly basis, as well as year-to-date and annual, and for year-to-date imports under tariff-rate quotas. As of July 2004, the trade-related tables contain expanded coverage of additional variables and regions, with historical data available for these additions. Export data are for major U.S. markets; import data are for major supplying countries.

The United States, while the largest producer of beef in the world, is a net beef importer. Most beef produced and exported from the United States is grain-finished, high-quality choice cuts. Most beef that the United States imports is grass-fed beef, destined for processing, primarily as ground beef.

The largest export market for U.S. beef is Japan, which through 2000 imported at least twice as much U.S. beef as the second-largest U.S. export market. However, imports by Japan fell by about one-third late in 2001 when BSE was discovered in the Japanese cattle herd. Mexico is the second-largest market for U.S. beef, and continued growth is expected but at a slower pace than in the past. The third-largest export market for U.S. beef, and the fastest growing, has been South Korea. The Korean market became fully liberalized at the end of 2001 and rapid growth is expected to continue. Canada, in fourth place, has been gradually declining in importance for several years. The Canadian market is expected to grow slowly at best.

Over the past several years, the largest percentage of U.S. beef imports has come from Australia, with Canada a close second. The third-largest exporter of beef to the United States is New Zealand. The United States also imports a significant portion of its cooked beef from Argentina and Brazil, but their combined share of the U.S. beef market is less than half that of the three largest exporters. The remainder of U.S. beef imports comes from Central America and Uruguay.

In May 2003, Canada reported the discovery of a case of BSE in one of its beef cows. Cattle and beef products from Canada were barred entry into the United States after the announcement. In August 2003, beef imports from Canada resumed but were restricted to boneless products from cattle under 30 months of age. As of early 2004, the trade situation continues to evolve as officials review the risks and revise trading rules accordingly.

The United States imports a significantly greater volume of cattle than it exports. The countries from which the United States imports cattle are also the same ones to which it exports cattle: Canada and Mexico. The geographical proximity of these countries and complementarity of their cattle and beef sectors explains why they are the United States' only significant cattle trading partners. Imports of Canadian cattle into the United States, however, have been banned since the May 2003 BSE announcement.

U.S. cattle exports to Canada and Mexico vary from year to year in the relative percentage exported to each country, although the absolute level of trade has been greater over the last several years. Historically, the United States exported primarily slaughter cattle to both countries. However, changes in Canada's policies have led to increased exports of feeder cattle.

In past years, cattle imports from Canada and Mexico have varied. The relative share of cattle imported from Mexico has tended to increase over the last several years. Imports from Mexico tend to be lighter cattle for finishing in U.S. feedlots, while those from Canada tended to be primarily for slaughter.

for more information, contact: Dale Leuck or Monte Vanderveer
web administration: webadmin@ers.usda.gov
page updated: February 18, 2004