Farm Progress America, October 24, 2024

Mike Pearson tells listeners how the shrinking beef herd in the USA may be a good thing for Australia.

The U.S. herd is the smallest since 1951 and it continued to shrink by 2 percent in 2024.

Australians are taking advantage of the small beef herd and has increased exports to the USA by 10 percent.

Australia now accounts for 22 percent of beef imports into the USA-- that is up from 12 percent just two years ago.

Most of the imports are 90 percent lean trimmings which is used to blend with domestic cuts to produce ground beef.

This product is highly sought after to create the lean to fat ratios consumers prefer.

By supplementing domestic beef, Australia is keeping it's beef on American shelves.

The shift has put U.S. production in a tough spot when they are already dealing with rising costs, reduced herd size and more competition from imports.

Why is Australis sending so much beef right now? The Australian beef herds have rebuilt after years of drought there.

They have streamlined operations and have been able to ramp up production.

For now, Australis is making the most out of U.S. demand.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness .

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