Beef Exports Facing Headwinds

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist

 

So far in 2022, beef exports have increased over the record levels of 2021.  The January – September period has total beef exports up 4.6 percent year over year.  However, the latest data shows that exports in the month of September, were down 5.7 percent year over year, the largest, and only the second monthly decrease in beef exports in 30 months.  The only other monthly decrease in beef exports since March 2020 was a 0.9 percent year over year decrease in March 2022.  The recent decrease in beef exports may indicate that global economic weakness is having negative impacts on beef exports, as has been feared.

 

The combination of macroeconomic weakness around the world and U.S. efforts to combat inflation with higher interest rates has resulted in the U.S. dollar strengthening against many currencies.  A stronger dollar makes U.S. product exports more expensive and simultaneously makes imports of foreign products more attractive.  Figure 1 shows the decrease in the currency exchange rates for the three largest beef exports markets, Japan, South Korea and China/Hong Kong over the last year.  The figure shows, for example, that the Japanese Yen has weakened by 30 percent in September and October compared to last year.  In other words, one dollar will exchange for 147 Yen in October 2022 compared to 113 Yen one year ago.  Similarly, one dollar today buys more South Korean Won and Chinese Yuan compared to last year.

 

Figure 1.

Decrease in Japanese Yen, S. Korean Won and Chinese Renminbi Exchange Rates

 

 

The September beef export data has monthly beef exports decreasing year over year for Japan (down 7.5 percent), South Korea (down 10.0 percent), China/Hong Kong (down 3.6 percent), Canada (down 10.7 percent) and Taiwan (down 26.2 percent).  Of the top six beef exports markets, only Mexico was up in September by 5.2 percent.  

 

For the January through September period, beef exports to Japan are down 0.9 percent; South Korea is up 1.2 percent; China/Hong Kong is up 12.6 percent; and Taiwan is up 10 percent.  Year to date beef exports to Canada are down 0.3 percent and down 14.1 percent for the year to Mexico.  U.S. beef exports will continue to face headwinds in 2023 and beef exports will likely decrease from record levels.

 

U.S. beef imports decreased for the fourth consecutive month in September, down 9.2 percent year over year.  Total beef imports are 6.4 percent higher year over year for the January – September period due to strong imports early in the year.  Beef imports from Brazil spiked early in 2022 as a Chinese embargo on Brazilian beef in late 2021 made large supplies of Brazilian beef available.  In January 2022, Brazil was the largest source of U.S. beef imports and accounted for 28.4 percent of total imports for the month.  After four months of year over year decreases, Brazil accounted for 9.0 percent of beef imports in September and was the number six source of beef imports for the month.  For the year to date, beef imports are up from Canada, Mexico and Brazil and are down from Australia and New Zealand.

 

Beef imports are expected to continue decreasing towards the end of the year but are likely to increase in 2023 as U.S. beef production falls from record levels.  Domestic production of lean processing beef may decline sharply in the coming months, making beef imports more attractive, especially when buoyed by a strong U.S. dollar.

 

 

Mineral Supplementation May Be of Extra Benefit This Year

Parker Henley, Oklahoma State University Extension Specialist and Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist

 

There are several reasons, in a non-drought year, that most people consider Oklahoma the greatest state for raising beef cattle. One of those reasons is that as a rule of thumb, Oklahoma forages do not have severe mineral deficiencies or high levels of mineral antagonists compared to forages in many other states. In 2022, the drought has led many of us to neighboring states for harvested forage, some of which are unconventional forage types. If you are in this situation, you may need to pay extra attention for your mineral program. We would suggest you get a feed analysis of your winter hay supply that includes mineral concentration. But, even with a test there are several mineral antagonists and unknown interactions that may occur.  Mineral supplementation to the cow herd is always a good idea, this year, it is of even greater potential benefit.  

 

Proper mineral and vitamin nutrition contributes to strong immune systems, reproductive performance and calf weight gain. Diets with mineral imbalances may cause poor animal performance, resulting in reduced profitability. Mineral requirements are dependent on forage mineral content, animal age and stage of production. However, simply knowing the animal’s requirement is only one component in evaluating an animal’s mineral status. Mineral needs also tend to be area specific and change with soil type, fertilization rates, rainfall and other factors. 

 

A mineral supplement that meets the cow’s macro mineral needs for things like calcium, phosphorus, and magnesium, can be fairly straight forward with a basic mineral program, but to get them bred back in a timely manner and to retain that pregnancy, delivering a highly available trace mineral supplement to the cow on a consistent basis is critical. Therefore, it is recommended producers ensure beef cows receive supplemental sources of these elements at least 60 days prior to calving through breeding and 30 days to 60 days prior to weaning. 

 

 

Cotton Stalk Residue as a Winter Feed Resource

Paul Beck, Oklahoma State University State Extension Beef Nutrition Specialist

 

Cotton gin trash is often used to replace hay fed to pregnant beef cows during the winter or as a roughage in growing and finishing cattle diets. Ginning each bale of cotton produces 150 to 200 pounds of gin trash. The gin trash consists of leaves, soil, stems, boles, burrs, lint, and cottonseed and averages 12% crude protein and 43% total digestible nutrients, which makes it adequate in protein but deficient in energy for a dry pregnant cow. Research has shown cows can maintain weight and body condition with as little as 3 pounds of grain-based supplement per day. Gin trash can contain large amounts of soil contamination and is initially unpalatable to cows, which may take several days for them to adapt and begin consuming gin trash. Because of the variability and unpalatability, intake should be closely monitored and supplemental feeding adjusted accordingly.

 

Large amounts of residue are left on the plant after cotton harvest. Similar to gin trash, residues include cotton lint, leaves, burrs, and unopened bolls. Cotton pickers tend to leave more residue than cotton strippers. This is an underutilized source of winter feed for dry pregnant spring-calving cows. Research in Georgia showed that dry pregnant cows can be maintained on cotton stalk residue instead of bermudagrass hay with only a slight reduction in body condition. In this research, an acre of cotton stalk residue lasted 44 days when stocked at 1 cow per acre. Cow consumed about 37 pounds of residue a day. In another study from Georgia, cows grazed cotton stalk residue along with free-choice hay. Cows were stocked at 1 cow per acre for 30-days. Total hay fed was decreased by 67% for cows grazing cotton stalks without altering weight gain or body condition scores. Analysis of the residue selectively grazed by cows showed the edible portion of the residue (the leaves, bolls, lint, and seed) were over 20% crude protein and 62% total digestible nutrients and comprised 30 to 50% of the total standing residue. Cows in this research had no adverse effects of gossypol toxicity and pesticide residues were below threshold levels.

 

The amount of residue varies greatly among cotton fields and in years with differing yield potential. To estimate the residue yield and the carrying capacity of the cotton field: 

1. Find 2 to 3 representative areas in the field.
2. Cut each stalk in a row for a distance of 9 feet and weight the residue collected. 
3. Calculate the area harvested.
   1. For example, with 36-inch rows: area = 9 ft harvested x 3 ft rows = 27 square feet
4. Calculate the residue harvested per square foot.
   1. If 3 pounds of residue was harvested: 3 pounds of residue/27 square feet = 0.11 pounds of residue per square foot.
5. Residue per acre is calculated by multiplying the residue per square foot x the square feet in an acre.
   1. 0.11 pounds of residue per square foot x 43,560 square feet in an acre = 4,792 pounds of residue per acre.
   2. Assuming there are 30 to 50% edible residues, the amount of edible residue would be between 1,440 and 2,400 pounds per acre.
   3. This would carry a cow 40 to 50 days.

With hay shortages and substantial areas of failed cotton crops, grazing cotton fields or cotton residue can be a great resource to shorten the hay feeding season and reduce the hay needed to maintain cows through the winter.

 

Our next Rancher’s Thursday Lunchtime Webinar Series will cover Wintering Cows with Limited Forage, covering this and other topics. Be sure to register. 

 

 

New Rancher’s Thursday Webinar Series Covers Wintering Cows with Limited Forage

David Lalman, Paul Beck, and Rosslyn Biggs, Oklahoma State University Extension Specialists

 

In our next Rancher’s Thursday Lunchtime Series begins on November 17 at noon and will continue through December 15.  A lot of people will be relying on crop residues to get cows through the winter. So, we will continue to explore alternative nutritional management systems or methods to winter beef cows with limited forage. 

 

• On November 17, Dr. Mary Drewnoski will discuss the use of baled crop residues (corn stalks, milo stalks, soybean hay) to winter beef cows. 
• On December 1 and again on December 17, Area Livestock Specialists and Extension Educators will team up with ranchers in their communities to share winter-feeding and residue grazing strategies and how these different methods are working for them thus far. 
• On December 8, Dave Lalman will discuss a different management system; limit feeding a concentrate-based diet (with limited forage) to winter beef cows in a grass trap or a pen. 
• Finally on December 15, Area Specialists and producers will share limit feeding techniques for concentrate and high quality forages that are working in their areas.

These are an out-of-the-box approaches that may work for some producers to reduce reliance on hay. It has been used at OSU and several large operations with great success.

 

We hope you will join us Thursdays at noon beginning November 17!