We recently sat down with Wyatt Doolittle of the Georgia Beef Board to discuss imports and exports. This is what Doolittle had to say.
“So today we’re going to dig into a question that comes up often. That’s why does the U.S. import beef while exporting so much of it? So, the United States is a premium beef producer. Our cattle are grain finished, deliver the marbling and eating experience that commands the top dollar overseas. And that’s why countries like Japan, South Korea, and Mexico pay a premium for those specific cuts,” said Doolittle.
Doolittle added, “Now, at the same time, we import lean trim, mainly from places like Australia, New Zealand, and sometimes South America. And here’s why. Our fast food and retail sectors need lean beef to blend with our very fatty trimmings to make hamburgers.”
“So, it’s not necessarily a replacement. Think of it more like a compliment or like sausage making. You don’t throw out good pork fat just because you bought lean trim. You blend them. And it’s the same kind of concept with beef. And exports matter. On average, exports add hundreds of dollars per head to fed cattle value. It’s like parting out a pickup truck. The engine, doors, and tires sold separately bring more than the whole wreck sold together,” said Doolittle.
“Each market values different pieces and that extra value trickles all the way back to the cow-calf producer. So, when you hear imports versus exports, don’t think of them like opposites, more so like puzzle pieces. We export what the world pays a premium for, and we import what helps balance our grind for consumers at home,” described Doolittle.
“For Georgia producers, strong exports mean stronger cow-calf markets and better demand for calves. Even if you’d never load a container for Asia, you still benefit. It’s like when the tide rises, every boat in the harbor lifts a bit. Bottom line, trade is not a threat. It’s a very valuable tool that adds value to every animal we raise,” said Doolittle.
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Audio Reporting by Elizabeth Sanders for Southeast AgNet.