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Global livestock report has good and bad news

A livestock economist says the USDA’s global livestock report has both good and bad news for the US beef and pork sectors.

University of Missouri’s Scott Brown says the USDA predicts a decline in global beef exports. He tells Brownfield that creates a good trade balance for 2019.  “Markets may get a little tighter for us in 2019,” he says.  “And even on the import side, another 15,000 metric tons to Japan, another 5,000 metric tons to Korea, Hong Kong, or Mexico all growing in front of us.”

Brown says global pork exports are projected to increase significantly next year and the additional pork will likely add even pressure to prices.  He says the US, EU, and China are the largest contributors to the rise in global pork production.

However, African Swine Fever continues to be a wildcard.  “We’re seeing more cases coming up,” he says.  “Knowing exactly its impacts gets pretty hard.  But, China and the EU matter a lot in terms of the global pork supply.  If one, or both, of those countries, were to see a major outbreak of ASF it will result in a big change for global pork markets.”

The report is released by the USDA’s Foreign Agricultural Service twice a year.