US beef exports falling by 90%

US beef exports set to fall by an estimated 90%

US beef exports will fall by 90% in 2004 after the discovery of the first case of mad cow disease, the US Department of Agriculture has said.

Its forecast comes after virtually all foreign countries banned imports of US beef following the single outbreak of BSE in Washington state last month.

The department also predicts a big fall for US cattle prices across the year.

However, it insisted that domestic US demand for beef remained "firm", as consumers continued to buy the meat.

Unanswered questions

And with 90% of US beef consumed on the home market, the estimated export decline will in fact affect only 9% of total production.

The Department of Agriculture (USDA) has revised down its predictions for US cattle prices in 2004 to a range of $72 to $78 per hundredweight, from December's estimate of $84 to $91.

US Government veterinary officials are continuing to investigate the outbreak of BSE, after initially saying that the infected cow was imported from Canada.

This has been questioned by the Canadians, as the investigations continue.