USMEF Positive On Exports
Year-end export totals show positive trends for U.S. pork, beef.
U.S. red meat exports finished 2009 on a positive note with healthy gains in volume over December of a year ago, positioning both beef and pork exports to start 2010 on an upward trend, according to statistics compiled by the U.S. Meat Export Federation (USMEF).
Although 2009 year-end exports of both U.S. pork and beef were down compared to the prior year, U.S. exports equaled or bettered their main international competitors.
U.S. pork exports closed the year with an 8% jump in volume and 6% in value for the month of December compared to year-ago totals. For the calendar year, pork exports registered the second-highest total in history, but fell 9% in volume and 11% in value behind the record-setting totals of 2008.
However, U.S. pork exports still outpaced the performance of global competitors, which (based on available data) slumped 15% in value for the year, led by a 22% drop for European Union pork producers.
The story was similar for U.S. beef exports, which rose 9% in volume and 4% in value for the month of December compared to 2008. For all of 2009, global beef export value (estimated from available trade data) fell 16%, with Brazil's export value tumbling 23% and Australia's falling 18.5%.
U.S. beef exports for all of 2009 slipped 9% in volume and 15% in value compared to 2008.
"It's been a challenging year for beef and pork producers around the globe, not just in the United States," said Philip Seng, USMEF president and CEO. "However, it is encouraging to see consumer confidence returning and very positive signs of growth."
Seng also noted that USMEF is committing significant resources to key export markets to continue the momentum. On the beef side, the USMEF "Trust" imaging campaign in South Korea has generated very positive results in what was the No. 3 U.S. beef export market prior to the discovery of BSE in 2003. The U.S. soybean industry has also provided a $1.35 million cash infusion to promote U.S. pork exports. USMEF is combining those funds with existing U.S. Department of Agriculture (USDA) Market Access Program (MAP) funds and new matching contributions from retailers to create more than $4 million in promotional impact for pork marketing programs in Japan, Mexico and South Korea.
Beef exports gain momentum
For calendar year 2009, beef exports finished about 9% below 2008 in volume (897,376 metric tons, or 1.98 billion lb.) and about 15% lower in value ($3.08 billion). When examined more closely, however, U.S. beef exports held up relatively well considering that the bleak global economy that prevailed throughout much of the year had a particularly strong effect on beef demand and may have benefited pork.
Much of the decline in beef exports is attributable to lower demand in Mexico, due to that country's deep recession and devaluation of the peso. Total beef/beef variety meat exports to Mexico declined 27% in volume (to 291,700 metric tons or 643.1 million lb.) and 35% in value (to $909 million). In fact, exports of HS chapter 0504 products (primarily tripe) to Mexico plunged 52% in volume and 64% in value. If these products are excluded from global totals, U.S. beef/beef variety meat exports declined by just 1.5% in volume and 8% in value compared to 2008.
U.S. beef also fared better than many of its global competitors in 2009. Brazilian beef exports declined 23% to $3.89 billion; Australia's export value dropped 18.5% to $3.76 billion; and New Zealand fell 19% to $1.233 billion. Canada's exports declined at a slightly lower rate, but still fell 13% to $1.116 billion. Argentina was the only major exporter to record an increase in 2009 (to $1.8 billion). But while Argentina's export volume increased 56%, it achieved only a 6% increase in value. This is a strong indication that the increase in exports was largely driven by herd liquidation.
The most positive trend for U.S. beef exports in 2009 was the explosive growth achieved in Asian markets: December exports to Japan were well above the previous year's level, capping off a year in which exports surged by 23% in both volume and value (to 91,467 metric tons, or 201.6 million lb., valued at $470 million).
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