Numbers are in and the U.S. Meat Export Federation (USMEF) reports pork exports dropped by 2 percent and beef exports fell by 11 percent in volume. The 2015 beef values were 12 percent below 2014 ($6.3 billion) for beef exports.
It marked the first full year of decline in values since 2009, according to Drovers CattleNetwork.
Analysts expect the export picture to improve in 2016 as ranchers continue rebuilding the nation’s cow herd.
“Imports, of course, last year were very large. They were up about 17 percent primarily because the strength of the U.S. dollar draws more product in,” said Kevin Good, analyst with CattleFax.
Australia was liquidating cattle due to a large supply and price of 90 percent trim. That drew a lot of product in, according to Good. The drought in Australia forced cattle to the export market and pushed the country’s herd to its lowest numbers in more than 20 years.
Analysts don’t expect the same levels from Australia for 2016.
“Their numbers are going to be down this year and as our numbers go up, we are going to work very aggressively in these markets to supplant the Australians,” said Phillip Seng, USMEF president and CEO.
Exports are expected to increase in 2016 due to a softer dollar and lower prices.
“We would say anywhere from 3-6 percent depending on market openings and this kind of thing. It could be even more than that,” Seng said.