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Federal Reserve Bank of Chicago December 18, 1959 TOTAL IMPORTS OF LIVESTOCK, MEAT and meat products into the U. S. in 1959 will be close to $600 million . Exports remained close to the 1958 level of $287 million. However, even this high level of meat imports represents less than 4 per cent of U. S. production of red meats. The imports last year consisted primarily of meat products and livestock, while exports consisted largely of livestock by-products and specialty meats. Fluctuations of net trade in livestock, meat and meat products have tended to offset •flu~tuations in domestic production of meat. In 1956, when total meat production and per capita consumption were at record levels, net exports were $154 million. In 1958, with lower meat production and higher prices, the trade balance had shifted to net imports of $225 million. million dollars +6 00 U. S. Trade in Livestock, Meat, and Meat Products +400 exports ___ , ,_,- ,- +200 ,-----~ gricult ural ~etter Number 539 thousand head are expected to cross the borders this year, a decline from the 1.2 million head last year. U.S. Exports-Imports of Beef and Veal Meat and Meat Products Imports 1955 1956 1957 1958 1959* ---------~milllonpounds ..----- ~ -------- -- Fresh and frozen ..... Pickled or cured ..... Canned ........... 26 5 87 31 8 73 126 11 95 358 6 113 539 9 93 Total imports ...... 119 112 232 478 641 Fresh and frozen ..... Pickled or cured ..... Canned ........... 18 17 5 61 16 5 71 15 3 7 16 2 7 14 Total exports ...... 41 81 89 25 24 Total U. S. production . 15,147 16,094 15,739 14,531 14,700 Exports , ___ .,,,,, , L 3 * 1959 partially forecast. net imports -200 I I I I I 1952 '53 '54 '55 '56 '57 '58 '59 Beef and veal have comprised the largest share of imports of meat and livestock. However, even at their high levels in 1959, beef imports will account for only 6 per cent of total U. S. beef supply. The amount and type of beef and veal imported has varied according to the level of beef production in the U. S. In 1956, a year of large per capita supply of beef, . fresh and frozen imports were half as large as canrre"d •w, beef, whereas, in 1959, a year of relatively small per capita supply of beef, the fresh and frozen category w}ll be nearly six times as large. In contrast, exports of fresh and frozen .b eef were at high levels in 1956 and 1957, but, by 1959, exports of fresh beef were very low. Cattle imports also vary closely with the U. S. cattle cycle, though in several years embargoes due to hoof for andFRASER mouth disease restricted imports. About 840 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Shipments of Canadian feeder cattle, which account for over half the U. S. imports, dropped off sharply after the middle of 1959. In part, this is a reflection of lo-ver pric~s on feeder cattle · in the U. S. this fall and, in part, it is ·, a reflection of the upswing in cattle number. in Canada after the forced reduction in b,eeding h, rds du1ing the 1QS8 drought. • I Iinports of Mexican cattle, which account for about 40 per cent of the total, have similarly been reduced due to the imposition of an export quota by the Mex can government of 380 thousand head. This is nearly f 20 per cent reduction from the 461 thousand head mo ing north from Mexico in the year ending August 31, E 59. Meat imports benefit consumers by complemen ing domestic supplies in periods of low production, hus evening out consumption. Producers also receive s ) fie benefits, though indirectly. The dampening of p ice increases in periods of low production tend to reduce the violence of the upswing in production and the p ice consequences which would follow. Research Department