Beef

2020 U.S. beef production expected to be record large

Source: USDA/NASS & WASDE estimates

8,000,000

8,500,000

9,000,000

9,500,000

10,000,000

10,500,000

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12,000,000

12,500,000

20022003200420052006200720082009201020112012201320142015201620172018

2019F2020F

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Annual U.S. Beef Production

2015: 10.75 MMT, -2.3%2016: 11.44 MMT, +6.4%2017: 11.88 MMT, +3.8%2018: 12.19 MMT, +2.6%2019F: 12.22 MMT, +0.3%2020F: 12.55 MMT, +2.7%

U.S. beef and variety meat exports were record large in 2018 at $8.3 Billion

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2020

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MT USD

Source: USDA/FAS

2019e: 1.32 mmt, -2%; $8.1 bil, -2% 2020f: 1.422 mmt, +7%; $9.1 bil, +12%

Value of exports per fed head of cattle slaughtered reached a record $323 in 2018

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2019e2020f

Export Value Per Fed Head

2018: $323.14, +13% and a new recordSource: USDA/FAS, fed slaughter

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20052006

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2019e2020f

Percent of Beef & Variety Meat Production Exported

Export share of production also set a record in 2018

Source: USDA/USMEF

Beef export value per head by market

$77.05

$72.14

$41.93

$29.44

$25.25

$21.83 $35.18 Japan

KoreaMexico

China/HKCanada

TaiwanOthers

Jan – Sep 2019 value per head of fed cattle slaughtered = $310.77, -3%

Source: USDA/USMEF, fed slaughter

Japan remains the top value market in 2019, and exports to Korea could reach $2 Billion

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Korea

Mexico

China/HK

Canad

a

Taiwan

ASEAN

Middle East EU

Carib + DR

South Am

Central A

mAfric

a

January – September Beef/BVM Exports

2017

2018

2019

Million US$

Source: USDA/FAS & USMEF

2017: $5.267 billion, +16%2018: $6.195 billion, +18%2019: $6.100 billion, -2%

Maximizing beef carcass value

Short plates, short ribs, chuck rolls, skirts, middle meats & variety meats to Japan, Korea, Hong Kong, Taiwan & S.E. Asia

Rounds, clods, skirts & variety meats to Mexico

Chuck rolls, rounds, skirts & variety meats to C/S America

Variety meats & middle meats to the Middle East

Full-sets to the EU

Source: USMEF