U.S. Trade Balance in the Trade of Cattle and Calves, Beef and Veal - PowerPoint PPT Presentation

U.S. Trade Balance in the Trade of Cattle and Calves, Beef and Veal A Disaster In the Happening Prepared by R-CALF USA Using Data Compiled by USDA Foreign Agricultural Trade of the United States (FATUS) December 17, 2009

Historic Under-Production of Domestic Beef in Recent Years Domestic Consumption in Excess of Domestic Production 30 29 28 27 Consumption Increases 26 after 1993 25 24 23 Total Domestic Beef 22 21 Consumption 20 Billions Pounds 19 18 17 16 15 14 13 Imported Beef and Beef 12 from Imported Cattle 11 10 9 8 7 6 Beef Produced Exclusively 5 from U.S. Cattle 4 Widest spread in history 3 2 of industry, 2004-2007 1 0 Imported beef and beef 1961 from imported cattle 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 Source: USDA FAS, USDA ERS 1993 Year 1995 1997 1999 2001 Beef Produced from U.S. Cattle 2003 2005 2007 Conversion of imported cattle to beef accomplished by multiplying the number of imported cattle by each year’s average slaughter carcass weight. R-CALF USA

Cattle and Beef Imports Capturing Growth in Domestic Beef Supply Origins of United States Beef Supply 10 % of All Available 13 % of All Available 17 % of All Available Beef was Imported Beef was Imported Beef was Imported in 1985 in 1996 in 2007 31 30 29 28 Total Available Beef in 27 26 Imported Beef U.S. Market 25 24 Beef from Imported Cattle 23 22 21 Billions Pounds 20 Total Domestic Production 19 18 17 16 15 14 13 12 11 Total Domestic Production Beef Produced from Domestic 10 9 Cattle 8 7 6 5 4 3 2 1 0 5 8 7 8 9 9 1 9 8 1 1 9 9 3 1 9 9 5 1 9 9 7 1 9 9 9 1 9 9 1 Beef Produced from Domestic Cattle 1 9 0 3 1 0 0 5 2 Data Source: USDA-ERS 0 0 7 2 0 0 2 0 2 Conversion of imported cattle to beef accomplished by multiplying the number of imported cattle R-CALF USA by each year’s average slaughter carcass weight.

U.S. Global Trade in Cattle and Beef 20-Year Cumulative U.S. Trade Balance = Negative $25.2 Billion $6 $5 $4 $3 $2 U.S. Imports U.S. $ Billion U.S. Exports $1 FTA BALANCE $0 -$1 -$2 -$3 -$4 R-CALF USA Scource: USDA FATUS Trade Data -$5 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

17 Countries Participate in Free Trade Agreements with the U.S. • Australia • Israel • Bahrain • Jordan • Canada • Mexico • Chile • Morocco • Costa Rica • Nicaragua • Dominican Republic • Oman • El Salvador • Peru • Guatemala • Singapore • Honduras

U.S. Trade in Cattle and Beef With 17 FTA Countries 20-Year Cumulative U.S. Trade Balance = Negative $37.6 Billion $5 Note: The FTA's with Oman and Peru did not go into effect until 2009 CAFTA $4 Chile Australia Singapore $3 $2 U.S. $ Billion U.S. Imports U.S. Exports $1 FTA BALANCE $0 -$1 NAFTA -$2 Israel R-CALF USA Morocco Source: USDA FATUS Trade Data Jordan Bahrain -$3 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

U.S. Trade Balance in Cattle and Beef with Canada 20-Year Cumulative U.S. Trade Balance = Negative $22.6 Billion $3 $2 NAFTA Implemented in 1994 $1 U.S. $ Billion U.S. Imports U.S. Exports FTA BALANCE $0 -$1 R-CALF USA Source: USDA FATUS Trade Data -$2 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

U.S. Trade Balance in Cattle and Beef with Mexico 20-Year Cumulative U.S. Trade Balance = Positive $1 Billion $3 $2 NAFTA Implemented in 1994 $1 U.S. $ Billion U.S. Imports U.S. Exports FTA BALANCE $0 -$1 R-CALF USA Source: USDA FATUS Trade Data -$2 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

U.S. Trade Balance in Cattle and Beef with Canada and Mexico (NAFTA) 20-Year Cumulative Trade Balance = Negative $21.5 Billion $3 NAFTA Implemented in 1994 $2 $1 U.S. $ Billion U.S. Imports U.S. Exports FTA BALANCE $0 -$1 R-CALF USA Source: USDA FATUS Trade Data -$2 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

U.S. Trade Balance in Cattle and Beef with Australia 20-Year Cumulative U.S. Trade Balance = Negative $14.4 Billion $1,500 U.S.-Australia FTA Implemented in 2005 $1,000 $500 U.S. $ Million U.S. Imports U.S. Exports $0 FTA BALANCE -$500 -$1,000 R-CALF USA Source: USDA FATUS Trade Data -$1,500 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

U.S. Trade Balance In Cattle and Beef With Chile 20-Year Cumulative U.S. Trade Balance = Negative $3.2 Million $5 U.S.-Chile FTA $4 Implemented in 2004 $3 $2 U.S. $ Million $1 U.S. Imports U.S. Exports FTA BALANCE $0 -$1 -$2 -$3 R-CALF USA Source: USDA FATUS Trade Data -$4 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

U.S. Trade Balance In Cattle and Beef With Uruguay 20-Year Cumulative U.S. Trade Balance = Negative $1.8 Billion $500 $400 $300 $200 $100 U.S. $ Million U.S. Imports U.S. Exports $0 FTA BALANCE -$100 -$200 -$300 -$400 R-CALF USA Source: USDA FATUS Trade Data -$500 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2