Wholesale Trade Buyers

Asian Beef Binge Boosts Shipments 17% Doubling US Share: Freight Markets

The U.S. may ship the most beef ever in 2011, after doubling its share of the world market in four years, as demand from Asia revives a $3.84 billion export industry decimated by mad-cow disease.

Shipments will jump 17 percent to 2.68 billion pounds (1.22 million metric tons) this year, exceeding the previous record set in 2003, according to Centennial, Colorado-based CattleFax, which has researched the industry for four decades. Global trade in refrigerated meat, including overland shipments, expanded 2 percent to 31 million tons last year, Clarkson Research Services Ltd., a unit of the world’s largest shipbroker, estimates.

The sales surge is part of an agriculture boom that will generate record income of $94.7 billion this year as American farmers fill supply gaps left by droughts and floods ruining crops, the U.S. government estimates. Consumers in the U.S. faced the highest ever retail prices for beef in the first four months and costs will rise as much as 8 percent this year, more than any major food group, the government says .

“We wouldn’t have had the record-high prices without the very robust export markets,” said Jim Robb, the director of the Livestock Marketing Information Center, a Denver-based research company funded by universities, the industry and government. “In some cases, rather lackluster growth in domestic consumption is being made up for in these export markets.”

South Korea is the biggest buyer of U.S. beef and sales more than doubled in the first four months after a livestock disease curbed domestic supply. The Asian nation’s total imports this year will be the highest since 2003, the U.S. Department of Agriculture estimates. South Korea reported 89 outbreaks of the foot-and-mouth virus since January 2010, data from the World Organisation for Animal Health show.

The revival of U.S. beef exports signals the industry has recovered from the damage caused by an outbreak of bovine spongiform encephalopathy, which was first discovered in the U.S. herd in December 2003. Shipments plunged 82 percent to 460.3 million pounds the following year, government data show. The brain-wasting disease was found in three U.S. cows, the last of them in 2006. The U.K. found more than 184,000 cases since 1987, according to the World Organisation for Animal Health .

Until the mid-1990s, most refrigerated goods were carried on ships called reefers, which use on-board power generators and typically sail faster than most other cargo vessels.

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