January-August 2020 imports of live cattle totaled 1.4 million head, 3.8 percent larger than the same period a year ago. Cattle for immediate slaughter, which accounted for about 25 percent of total imports and originate mostly from Canada, increased 6.7 percent compared with a year ago.
Lower Canadian fed steer prices likely served as an incentive to import Canadian animals into the United States. U.S. imports of feeder cattle increased 2.8 percent in the January-August period this year. This category accounted for about 74 percent of cattle imports.
Most of these animals originated from Mexico. The lower-valued Mexican peso likely incentivized U.S. cattle feeders to import Mexican feeder animals.
The forecast for second-half 2020 beef production was raised from September on higher expected fed cattle and cow slaughter. As a result, the annual forecast for 2020 beef production was raised by 90 million pounds to 27.1 billion pounds.
Beef production in 2021 was raised slightly on higher expected fed cattle marketings. August beef imports were 32 percent larger year over year on a continued strong demand for processing-grade beef. The forecast for beef imports was raised for both 2020 and 2021. U.S. beef exports in August 2020 were up 2 percent. No changes were made to the 2020 forecast for beef exports, but the 2021 forecast was lowered on a revised global outlook. — USDA Economic Research Service
