Where’s the Beef

Yesterday, I posted on work pork production.  Today I will recap world beef production (again from the 2014 Agricultural Symposium).  Here are some of the key points:

• Total beef production has held steady between 56 and 59 million metric tons over the last 10 years (about half of total pork production).
• US produces about 11 million tons with Brazil slightly behind at around 10 million tons.  The EU-27 countries produce slightly less than 8 million tons while China is a distant fourth at slightly less than 6 million tons.
• Brazil is the number one exporter at 2 million metric tons with India slightly behind (they raise them, but don’t eat them).  Australia is number 3 at about 1.5 million tons with the US in 4th place at slightly more than 1 million metric tons.  Total exports are about 9.5 million metric tons in total.
• The number 1 importer is Russia and the US tied at about 1 million metric tons.  Japan is third.
• India’s exports have increased fourfold over the last 10 years.
• China used to produce more beef than they consume.  However, over the last few years, they consume more than they produce.
• Brazil’s production is increasing at a rate slower than their consumption.
• Total Beef export values are about $9 billion per year, however, the US also imports about $6 billion on an annual basis.
• Beef inventories have declined 11% from 2007 to 2014.  Only five states (North and South Dakota, Michigan, Ohio and Pennsylvania) have seen increases in inventories.

I know my perception is that world beef production was greater than world pork production, but as you can see, the world raises and consumes a lot more hogs than cattle.  I think that trend will continue.

Paul Neiffer, CPA