Imports of beef to the US market increased

Brazil was the first country to report an increase in US beef exports , and now New Zealand is confirming this trend in the North American market. In the first five months of the year, shipments of Brazilian beef to the US market rose 165.6% to 33,800 tons, according to Brazilian beef lobby Abiec. Exports rose 186% in May alone, making the United States the third-biggest foreign buyer of Brazilian beef.

Meanwhile, according to Beefan+Lamb New Zealand (B+LNZ), New Zealand is also increasing its presence in the US beef market. Exports of New Zealand's chilled beef to the US rose sharply in both April and May, reflecting an improvement in the food service sector and growing US consumer appetite for high-priced beef. In May, chilled beef exports increased by 90% compared to May 2020, which is not surprising given that the global covid-19 pandemic has reduced demand. But New Zealand chilled beef exports to the US in May 2021 were more than double the five-year average for May. The increase was accompanied by an increase in the average value of exports by 5% year on year, and by 15% on average over five years. This follows a similar trend in April.

In fact, U.S. consumer spending on food rose to record levels in May, surpassing the pre-pandemic high in February 2020.

This can also be attributed to the strong US beef exports, especially to CHINA . Beef exports hit a new high in May at 133,440 tons, up 68% from a year ago, with China accounting for 16,472 tons, according to USMEF. Exports to China in January-May reached 64,763 tons worth $474.7 million, up 1,200% from last year, and have already set new annual records.

Looking forward, U.S. demand for MEAT protein is expected to remain strong through the end of 2021 as demand from a recovering foodservice sector continues to create supply issues. Demand from China is expected to continue to put competitive pressure on prices, economic services group B+LNZ said.