Welcome to the Friday edition of the HOT BARN REPORT
Heard ONLY on American radio stations across the nation and online at hotbarnreport.com!
Karina Jones, Field Director for R-Calf USA joins us each Friday from her ranch in the heart of Nebraska covering what’s new and important to the family farm and ranch.
Thanks for tuning in to this special Friday edition of Hot Barn Report. Earlier this week, Monte James interviewed Senator Mike Rounds, from South Dakota. {Click here} I highly recommend checking it out on the Your Ag Network website or app.
It was clear that Senator Rounds shares the American cattle industry’s concerns over the record Brazilian Beef imports that we are experiencing. I wanted to give more frame of reference as to why Senator Rounds and so many others are being vocal about this issue.
According to the Daily Livestock Report, weekly data from USDA‐AMS shows that, through the week ending April 9, US imports of fresh/frozen beef were 30% higher than the same 15 week period a year ago. Higher imports from Brazil have accounted for more than half of the overall increase. At this time last year Brazil accounted for 2% of US imports but currently its market share has jumped to 15%. The volume of beef that Brazil can ship to the US may be capped by the limited quota that it has available. That quota was filled at the start of April and any Brazilian beef entering the US between now and the end of the year will pay an “out‐of‐quota” tariff of 26.5%.
One would expect Brazilian beef shipments to the US to turn to a simmer down once the quota was filled, but that has not been the case. Brazil shipped over 11,000 MT in March, with much of that product entered the US in April and payed the higher tariff. US importers note that Brazil continues to offer meat for delivery in May and June at prices that are competitive with other supplying countries. It is quite telling that Brazilian processors are willing to absorb a +70 cent tax, apparently still making the US the highest bidder for Brazilian beef.
Brazil has turned to the US as their “cash cow” and may ship as much as 100,000 MT of beef this year. They have the meat. USDA is currently expecting Brazilian cattle slaughter to be up 1.4 million head or 3.9% from the previous year. US cattle inventories have declined in recent years and will likely be lower in 2023 and 2024 due to ongoing beef cow liquidation and smaller calf crops. The cattle herd in Brazil, on the other hand, is expected to be over 276 million head at the start of 2023, 32 million head or 13% higher than on January 1, 2020.
Last fall Chinese officials temporarily banned Brazilian beef imports due to an occurrence of BSE. Unless Chinese buyers come back in the market, Brazil will keep shipping to the US and the higher tariff just the cost of doing business.
Even a blind squirrel finds a nut and I would think EVERYONE could see why labeling our beef is imperative and urgent! Continue to urge your lawmakers to cosponsor The American Beef Labeling Act, S. 2716 and in the House, H.R. 7291!
Tune in to the hottest barns in the nation next week, Crawford, Presho, Lemmon, North Platte, Bassett, Mobridge, Stockman’s, Creighton, and Platte. Find them all on CattleUSA.com
The HOTTEST sale barns in America
See more at HOT BARN REPORT
As always buy ’em up online at CattleUSA.com
Creighton Livestock Market
Lemmon Livestock, INC.
Presho Livestock Auction
Mobridge Livestock
Platte Livestock Market
Stockmen’s Livestock
Crawford Livestock Market
North Platte Stockyards
Bassett Livestock Auction
