According to Bloomberg's Lydia Mulvany, U.S. cattle producers are very concerned by President Donald Trump's pledge to renegotiate the North American Free Trade Agreement.
At the National Cattlemen's Beef Association conference in Nashville last week, Director of International Trade Kent Bacus said NAFTA has been very lucrative to the industry because of the strong demand from Canada and Mexico.
He notes American farmers produces a significant surplus of beef each year, and that product needs to be moved out to others countries.
The NCBA is already upset about the withdrawl of the Trans-Pacific Partnership.
It estimates the U.S. beef industry is losing about $400,000 a day in potential sales, as Australian meat with lower tariffs continues to go to Japan.
The timing of a NAFTA shakeup could also be detrimental to American producers as beef output is projected to be at a six-year high in 2017.
Bloomberg reports U.S. beef exports have risen by 78 per cent in volume since NAFTA was enacted 23 years ago.
According to the USDA, Mexico was the largest purchaser over that time and Canada was fourth.
As well the department points out that frozen beef stocks were at a record high to end 2016.
