Fewer Pounds, More Dollars
U.S. beef, pork exports dip slightly; lamb rebounds.
Editor’s Note: Export statistics refer to both muscle cuts and variety meats unless otherwise noted. One metric ton (mt) = 2,204.622 pounds (lb.).
The value of beef exports remained slightly above 2011’s record levels despite continued lower volumes, U.S. pork exports for the first 11 months of 2012 continued to exceed the record-setting pace of 2011, and the value of lamb exports in November bounced back from an otherwise slow year, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
With U.S. production declining in 2012, beef exports fell a modest 1% in value on a 13.3% drop in volume in November. For the year, volumes are down 11% (1,043,151 mt), but the value of those exports is $5.05 billion — still 2% above the record-setting value pace of 2011.
Canada (up 18.5% in volume and 37.8% in value), Hong Kong (up 18.8% and 62.6% in volume and value, respectively), Russia (up 19% in volume and 4% in value) and Central/South America (up 42.4% in volume and 56.3% in value; including record exports to Chile, up 119%) were the top-performing beef export markets in November. Export value to South Korea increased nearly 6% on a slight decline in volume.
“Volume has been an issue for beef exports all year,” noted USMEF President and CEO Philip Seng. “That continued in November, but an appreciated value of those products has helped the industry hold its own in a challenging year.”
Beef exports to price-sensitive markets like Mexico are down this year, but the value of exports to premium markets like Japan (up 19% for the year) and Canada (up 13%) continue to grow even as volumes remain low.
Another positive for beef exporters is the rebound of the Taiwan market, which was once a top-five U.S. beef export market but was hindered for most of this year by ractopamine-related barriers that have since been resolved. In November, the value of beef sales to Taiwan jumped 13.7% over last year on slightly reduced volumes. For the year, exports to Taiwan are down 48% in volume and 40% in value, but recent numbers are encouraging for 2013. Pork exports to Taiwan, however, continue to be affected by Taiwanese restrictions on products with ractopamine residues.
“There is no question that rising production costs and slowing economic growth have kept buyers on the sidelines or moved them toward less expensive options,” said Seng. He noted that higher domestic meat production in certain markets (such as Korea, Japan and China) also have affected exports this year. Market access issues — such as Indonesia’s tighter import quotas aimed at boosting domestic production and Saudi Arabia’s closure due to BSE — have also impacted exports.
“While volumes are lower, the quality and reputation of U.S. red meat products have helped support higher values, and that is not a statement that most of our competitors in the international marketplace can make,” he said.
With only one month yet to be recorded for 2012, pork exports continue to top 2011 levels by 2% in volume (2,075,974 mt) and 5% in value ($5.8 billion), while totals for November declined 7.7% in volume and 5.4% in value vs. last year. It is important to note, however, that November 2011 ranks as the second-best month in history (behind October 2012) for U.S. pork exports.
Mexico continues to perform as the United States’ top pork volume destination, with November’s totals up 7.2% in volume and 4.6% in value, pushing the 11-month totals to 550,408 mt (up 15%) valued at just over $1 billion (up 11%).
Although exports to Japan are trailing 2011 volume, they could still eclipse the $2 billion mark this year, with value up 3% through November and volume down 6%.
Other top pork markets in November were Canada (up 15.3% in volume and 17.1% in value), South Korea (up 26.4% in volume and 8.5% in value), Russia (up 100% in volume and 78.7% in value), and Central/South America (up 21.1% in volume and 10% in value).
Year-to-date, U.S. pork exports account for 27% of total production (23.5% for just muscle cuts) and the per-head export value is $56.12 — up 3% from last year. Beef exports account for 12.6% of total production (9.8% for just muscle cuts) with a per-head value of $214.64, up 5% from last year.
The value of exports was the positive news for the U.S. lamb industry in November. The volume of American lamb sales internationally has been down throughout the year: declining 27% for the first 11 months and 22.3% in November. While the value of those exports also has been down for the year (-13%), it jumped 12.4% in November on the strength of strong sales to the top lamb export market, Mexico.
Complete export results for pork, beef and lamb are available online.
