Good News Abroad
U.S. beef, pork exports show strength in first quarter.
U.S. beef and pork muscle cut exports performed well in March, concluding the first quarter of 2010 with increasing momentum. A sluggish global market for variety meat held down the overall totals, but muscle cut export value for both products are running ahead of their 2009 pace.
Beef muscle cuts are off to a particularly strong start in 2010, increasing 22% in volume to 156,947 metric tons [346 million pounds (lb.)] for the quarter. The increase in value was even higher, up 24% to $678 million. The combined beef/beef variety meat totals are also impressive, rising 11% in volume (to 225,122 metric tons, or 496.3 million lb.) and 14% in value (to $788.5 million). Total beef exports accounted for 10.6% of overall production in March compared to 9.4% in March 2009. Export value per steer and heifer slaughtered equated to $127.40, compared to $110.67 last year.
With the exception of Mexico, its No. 1 export market, U.S. beef exports are surging in nearly all key global markets. Beef exports to Mexico continue to struggle due to weakness in Mexico's economy. Though beef muscle cut exports managed to pull within 7% in volume and 10% in value of their 2009 pace, variety meat exports to Mexico are still down dramatically.
However, Asian markets are performing well across the board, with excellent gains also posted in Canada, the Middle East, the Caribbean and Europe, and explosive growth achieved in Russia.
Canada solidified its position as the No. 2 volume and value market for U.S. beef, with first-quarter beef/beef variety meat totals reaching 32,045 metric tons, or 70.6 million lb.) valued at $139.4 million. This is an increase of 14% in volume and 19% in value over 2009.
Japan is the No. 3 value market at $95.3 million — up by 33% compared to the first quarter of last year. In terms of volume, Japan is up 37% to 18,487 metric tons (40.8 million lb.). While the United States and Japan recently undertook a new round of discussions on market access for U.S. beef, these gains were achieved despite Japan's restriction of U.S. imports to beef from cattle 20 months of age or younger.
South Korea surpassed Japan slightly in terms of first-quarter volume (18,763 metric tons, or 41.4 million lb.) and is the No. 4 value market at $78.2 million. This is an impressive increase of 11% in volume and 24% in value over 2009, but recent Korean import data tell an even more positive story. These data show imports of U.S. beef/beef variety meat increasing 66% in the first quarter, with the United States accounting for more than 30% of Korea's beef imports. Korea's April data show an 80% increase in imports of U.S. beef. Weekly U.S. export data compiled in April suggest that Korea is currently the second-largest market for U.S. beef muscle cuts, trailing only Mexico.
Other first-quarter beef highlights include:
• The recent addition of bone-in beef cuts has helped bolster exports to Taiwan, which gained 85% in volume (8,488 metric tons, or 18.7 million lb.) and nearly doubled in value to $45 million. While the expansion of eligible products generated some negative local publicity, USMEF worked very closely with importers and end users of U.S. beef to reassure them about product safety and quality. As a result of these ground-level efforts, consumer response has been positive and beef exports continue to gain significant momentum in Taiwan.
• Despite exports to Vietnam being about equal to 2009, the ASEAN region continued to show a strong increase in demand for U.S. beef. Led by outstanding growth in the Philippines and Indonesia, beef/beef variety meat exports to the region are up 12% in volume (21,936 metric tons, or 48.4 million lb.) and 11% in value (to $71.2 million).
• Beef/beef variety meat exports to Hong Kong more than tripled in both volume (7,613 metric tons, or 16.8 million lb.) and value ($28.8 million).
• The Middle East continued its growth as a major destination for U.S. beef, gaining 37% in volume (to 25,963 metric tons, or 57.2 million lb.) and 51% in value (to $43.9 million). The increase in muscle cut volume (158%) and value (72%) were even more impressive. While the region has long been a mainstay market for U.S. beef variety meat, muscle cuts continue to make up a higher percentage of exports to the Middle East.
• Russia, which almost exclusively purchased beef livers in 2009, is now importing U.S. beef muscle cuts at a pace not seen since mid-2008. This resurgence is reflected in Russia's combined beef/beef variety meat totals, which more than doubled over last year (to 12,855 metric tons, or 28.3 million lb.) and increased by more than 400% in value to $28.9 million.
• Impressive gains were also posted in the Dominican Republic, which was up 130% in volume and 108% in value. The rest of the Caribbean region increased substantially as well, up 30% in both volume and value. The European Union (up 37% in volume and 80% in value) and Central and South America (up 39% in volume and 44% in value) also gained significant ground compared to 2009.
These results left Mexico as the only major beef market trailing last year's pace, but even this decline is largely attributable to variety meat. Variety meat exports to Mexico are down 44% in volume and more than 60% in value, while muscle cuts are down 7% and 10% respectively. Despite this decline, Mexico remained the largest destination for U.S. beef/beef variety meat at 58,156 metric tons (128.2 million lb.) valued at $184.7 million.
"As a beef producer, I can't help but be extremely excited about these global results," said USMEF Chairman Jim Peterson, a rancher from Buffalo, Mont. "We're confident that U.S. beef will rebound in Mexico when economic conditions improve. And when that happens, U.S. beef is well-positioned for a remarkable performance in 2010."
Click here to see complete first-quarter statistics for all species online.
Editor's Note: The above article was adapted from a May 13 news release provided by the USMEF.