Expanding Beef Production Increases the Need for Exports: U.S. Long-Term Beef and Cattle Outlook

In our baseline scenario, the U.S cattle and beef industries are in an expansion phase that is expected to last for another two to three years. As a result, demand for existing capacity is likely to be high, and packers will enjoy the largest balance of market power through 2022. In order for the beef market to remain in equilibrium, the U.S. will have to increase exports to be consistently above 10 percent of total production (greater than 3.1bn pounds), thereby also becoming a net exporter of beef.

Beef_Cows_US.jpg