Beef Exports Trend Lower
April exports of
U.S.
pork achieved gains in a wide range of markets, according to data released by
USDA
and compiled by the
U.S. Meat Export Federation
(USMEF), while beef exports were below the very large totals posted a year ago.
Propelled by another month of widespread growth, April pork exports totaled 243,789 metric tons (mt), up 15% from a year ago, while value increased 10% to
$660.1 million
. For January through April, pork exports climbed 14% to 960,480 mt, valued at
$2.62 billion
(up 13%).
"International demand continues to be a positive for the entire pork supply chain," said USMEF President and CEO
Dan Halstrom
. "While
Mexico
remains a star performer for
U.S.
pork, it's really encouraging to see growth in many markets. Latin American demand has remained strong while the momentum for
U.S.
pork into the
Asia Pacific
region has also been increasing. This is critical for maximizing carcass value and generating revenue for an industry that is facing difficult economic conditions."
April beef exports were 10% below last year at 111,416 mt, while value fell 18% to
$859.5 million
. Through the first four months of 2023, beef exports were down 8% in volume (437,910 mt) and were 21% lower in value (
$3.21 billion
) compared to last year's record pace.
"With
U.S.
beef supplies tightening, it's difficult to keep pace with the remarkable export totals posted in the first half of 2022, but exports continue to account for a similar share of production as last year's record," Halstrom said. "The rebound in travel and tourism - which is now gaining momentum in
Asia
- and related foodservice opportunities continue to support beef demand. In some countries we have also seen a recent easing of the inflationary pressure on consumers' discretionary income."
Halstrom added that for both beef and pork exports, it is imperative that
West Coast
port terminal operators reach a contract agreement with longshoremen.
"While there has been no formal strike or lockout, sporadic work stoppages on the
West Coast
are a major concern for exporters and their international customers," Halstrom said. "This is especially true for companies shipping chilled beef or pork to
Asia
. For that business, reliability and timeliness are paramount."
Pork exports climb to
Mexico
,
Korea
,
ASEAN
and
Australia
Pork exports to
Mexico
have soared to another record pace in 2023 and April was again a strong month, with volume increasing 9% year-over-year to 80,214 mt, valued at
$149.6 million
(up 7%). For January through April, shipments to
Mexico
topped last year by 10% in volume (350,270 mt) and 27% in value (
$691.3 million
). While much of the volume is destined for further processing, the
U.S.
industry continues to make impressive strides in
Mexico's
retail and foodservice sectors.
April pork exports to
South Korea
totaled 21,336 mt, up 42% from a year ago and the largest since
May 2019
, while export value climbed 27% to
$66.6 million
. Through April, exports to
Korea
were up 13% to 66,395 mt, valued at
$210 million
(up 1%).
Korea
recently opened another duty-free quota for imported pork cuts, which primarily benefits Canadian, Mexican and Brazilian pork (the
U.S.
, EU and
Chile
already have duty-free access). Eligibility was also recently restored for pork imports from one German slaughter plant located in a region free of African swine fever (ASF).
Pork exports to
Australia
have made an impressive rebound in 2023, with April exports more than doubling from a year ago to 6,040 mt (up 143% and the highest in two years), valued at
$20.6 million
(up 123%). Although
Australia
restricts
U.S.
pork to processed products and raw material destined for further processing, January-April exports climbed 54% to 16,146 mt, valued at
$56.6 million
(up 50%).
Other January-April results for
U.S.
pork exports include:
* April exports of pork variety meat soared 39% from a year ago to 47,692 mt, valued at
$113 million
(up 27% and ninth largest on record). Through April, pork variety meat exports increased 37% to 195,030 mt, valued at
$458.6 million
(up 24%). While
China
/
Hong Kong
is the primary destination, exports also increased to
Mexico
,
the Philippines
,
Canada
,
Colombia
, the
Dominican Republic
,
Honduras
,
Vietnam
,
Taiwan
,
Chile
and
El Salvador
.
* Strong retail and foodservice demand, combined with an ASF-driven downturn in domestic production, have contributed to a surge in
U.S.
pork exports to the
Dominican Republic
. Through April, shipments to the DR were up 55% from last year's record pace to 42,659 mt, valued at
$112.6 million
(up 67%). With demand also increasing in
Trinidad and Tobago
, the Leeward-Windward Islands,
Netherlands Antilles
,
Cayman Islands
and
Barbados
, January-April exports to the
Caribbean
region increased 49% to 49,069 mt, valued at
$135.2 million
(up 57%).
* Domestic production challenges, rising prices for European pork and the extension of reduced tariffs in
the Philippines
have bolstered demand for
U.S.
pork in the
ASEAN
region. Through April, exports increased 65% to 20,646 mt, valued at
$50.5 million
(up 55%). While
the Philippines
is the region's primary destination for
U.S.
pork, exports have surged to
Malaysia
, reaching a record 860 mt in April. Volumes have also increased to
Vietnam
.
* Demand for
U.S.
pork has also rebounded in
Taiwan
, where April exports increased tenfold from last year's low total to reach 1,732 mt (the highest since 2020), valued at
$4.5 million
. Through April, exports to
Taiwan
were up 365% from a year ago to 3,224 mt, valued at just over
$10 million
(up 425%).
* April pork exports to
Japan
were down 3% from a year ago to 33,527 mt, while value slipped 8% to
$131.5 million
. Through April, exports declined 2% to 123,856 mt, valued at
$494.3 million
(down 8%).
Japan
is the primary overseas destination for
U.S.
chilled pork, with these shipments relying heavily on smooth operations at
U.S. West Coast
ports.
* Pork exports to
China
/
Hong Kong
continue to trend well above the totals posted in the first half of 2022. April exports to the region were 47,152 mt, up 33% from a year ago, with value up 29% to
$122.6 million
. As noted above, variety meat accounts for most of the volume. Through April, exports to
China
/
Hong Kong
increased 30% in volume (182,033 mt) and 27% in value (
$474.7 million
).
* April pork export value equated to
$67.56
per head slaughtered, up 13% from a year ago and the highest since
May 2021
. The January-April per-head average increased 12% to
$61.96
. Exports accounted for 32% of total April pork production and 27.7% for muscle cuts only, each up more than three percentage points from
April 2022
. For January through April, these ratios were 29.1% of total production and 24.9% for muscle cuts, up significantly from a year ago (25.8% and 23%, respectively).
April beef exports increase to
Mexico
,
Korea
,
Europe
and
Africa
April was another outstanding month for beef exports to
Mexico
, buoyed by a strong peso and robust foodservice demand. April shipments totaled 14,403 mt, up 10% from a year ago, while value climbed 18% to
$81.8 million
. For January through April, exports to
Mexico
increased 14% to 64,912 mt, valued at
$365.4 million
(up 17%). These totals included 32,912 mt of beef variety meat, up 13% from a year ago, valued at
$93.9 million
(up 19%).
Mexico
is the leading volume destination for
U.S.
beef variety meat exports.
April exports to
South Korea
reached 24,825 mt, exceeding last April's large volume by 7%. Export value was
$201.8 million
, down 13% from a year ago but the highest since August. Through April, exports to
Korea
were down 10% from last year's record pace at 88,708 mt, valued at
$707.1 million
(down 31%). The Korean won slumped versus the
U.S.
dollar in April but has since posted a modest rebound. Inflation has also recently eased in
Korea
, brightening the outlook for beef demand.
April exports to the
European Union
(plus the
United Kingdom
), which restricts imports to beef from non-hormone-treated cattle, totaled 2,345 mt - up 25% from a year ago and the largest since
September 2019
. Export value increased 32% to
$31.4 million
. Through April, exports to the EU+UK climbed 14% to 7,176 mt, valued at
$89.8 million
. British demand accounted for some of this growth, despite the fact that
U.S.
beef has no duty-free access to the
UK
.
Australia and New Zealand
now have duty-free quotas for beef exports to the
UK
under their recently implemented free trade agreements, which will put
U.S.
beef at a severe disadvantage. For this calendar year, the
U.S.
-specific share of the EU's duty-free High-Quality Beef Quota is 27,800 mt.
Other January-April results for
U.S.
beef exports include:
*
South Africa
continues to be a bright spot for
U.S.
beef exports in 2023, fueled by a strong rebound in demand for beef variety meat. April exports nearly doubled from a year ago, increasing 96% to 1,374 mt, valued at
$1.5 million
(up 70%). Through April, exports climbed 162% to 7,199 mt, with value up 165% to
$7.8 million
. Exports to
South Africa
are on a record pace, already approaching the full-year totals achieved in 2022. With shipments also trending higher to
Cote D'Ivoire
and
Morocco
, January-April exports to
Africa
increased 74% to 8,504 mt, valued at
$9.8 million
(up 57%).
* April beef exports to
Peru
, also a major destination for variety meat, more than doubled year-over-year to 677 mt, valued at
$2.9 million
. For January through April, exports to
Peru
climbed 143% to 2,189 mt. Beef variety meat shipments accelerated at an even higher rate, with exports soaring 356% to 1,568 mt, valued at just over
$3 million
(up 125%).
* Although below last year's large totals, April was a solid month for beef exports to
China
/
Hong Kong
. April shipments reached 21,235 mt, down 8%, valued at
$186 million
(down 13%). Through April, exports to the region trailed the record pace of 2022 by 11% in volume (76,357 mt) and 17% in value (
$663.1 million
). Reflecting a rebound in travel and tourism in
Asia
, exports to
Hong Kong
are trending higher in 2023, climbing 26% to 11,971 mt, valued at
$122.1 million
(up 8%).
* While April exports to the
Caribbean
were below last year, January-April shipments remained 7% higher in volume (9,599 mt) and 8% higher in value (
$86.8 million
). These results were fueled by excellent growth in the
Dominican Republic
and the
Bahamas
.
* Beef exports to
Japan
slumped in April to 19,788 mt, down 26% from a year ago and the lowest since
February 2016
. Export value fell 34% to
$146.6 million
. For January through April, exports to
Japan
were 10% below last year's pace at 89,068 mt, valued at
$620.5 million
(down 24%).
* April beef export value equated to
$441.70
per head of fed slaughter, down 10% from a year ago but the highest since July. The January-April per-head average was
$389.53
, down 19% from a year ago. April exports accounted for 15.7% of total beef production and 13.5% for muscle cuts only, essentially mirroring last April's ratios. Through April, exports accounted for 14.4% of total production and 12.2% for muscle cuts, each down about one-half percentage point from a year ago.
April lamb exports trend lower
Exports of
U.S.
lamb muscle cuts totaled
153 mt
in April, down 13% from year ago, while export value fell 20% to just over
$1 million
. Exports to
Mexico
more than doubled to 54 mt, but these gains were offset by lower shipments to the
Caribbean
.
Through April, lamb exports were still 22% ahead of last year's pace at
817 mt
, with value up 10% to
$4.7 million
. Exports trended higher to
Mexico
, the
Netherlands Antilles
, the
Bahamas
,
Guatemala
and
Canada
.
Complete January-April export results for
U.S.
pork, beef and lamb are available from USMEF's statistics web page (http://www.usmef.org/news-statistics/statistics/).
* * *
NOTES:
* Export statistics refer to both muscle cuts and variety meat, unless otherwise noted.
* One metric ton (mt) = 2,204.622 pounds.
* As noted the past several months, USMEF has raised concerns in recent years with
USDA
about export data collected by the
Department of Commerce
for lamb variety meat to
Mexico
. Reported volumes have declined dramatically since July, suggesting that the data reported in prior months and years were disproportionately high. USMEF is therefore focusing year-over-year comparisons on lamb muscle cuts only.
*
U.S.
pork and beef currently face retaliatory duties in
China
. In
February 2020
,
China
announced a duty exclusion process that allows importers to apply for relief from duties imposed in response to
U.S.
Section 301 duties. When an application is successful, the rate for
U.S.
beef can decline to the MFN rate of 12% and the rate for
U.S.
pork can decline to 37% (the MFN rate plus the 25% Section 232 retaliatory duty, which remains in place).
* * *
Original text here: https://www.usmef.org/press-release/broad-based-growth-for-april-pork-exports-beef-exports-trend-lower
