September Results Show Strong Third Quarter for Red Meat Exports
Year-to-date U.S. beef exports are well above last year.
September was another solid month for U.S. red meat exports, with pork, beef and lamb totals well above year-ago levels, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
September beef export volume was 101,224 metric tons (mt) — down slightly from August, but 27% above last September. Third-quarter volume was 307,383 mt, the largest since the fourth quarter of 2014. For January through September, export volume was 8% above last year’s pace at 848,930 mt. September export value was up 17% from a year ago to $533.3 million. For the first three quarters of 2016, export value was $4.54 billion, down 5% from a year ago.
Beef exports accounted for 13.5% of total beef production in September and 10% for muscle cuts only. January-September ratios were also 13.5% and 10%, up slightly from a year ago. Export value per head of fed slaughter averaged $256.98 in September, the first year-over-year increase (up 10%) of 2016. Through September, export value averaged $253 per head, down 10% from last year.
September pork export volume was 183,936 mt — also down slightly from August but up 7% from a year ago. For January through September, export volume was 5% above last year’s pace at 1.66 million mt. September export value was up 8% from a year ago to $491 million, while January-September export value was $4.27 billion, up 1% from the same period last year.
Exports accounted for 24% of total pork production in September and 20% for muscle cuts only. January-September ratios were 25% and 21%, up slightly from last year, mainly reflecting growth in variety meat exports to China/Hong Kong. Export value per head slaughtered averaged $48.29 in September, up 3% year-over-year. January-September export value was down slightly, averaging $49.24.
“Red meat exports continued to build positive momentum in September, and it couldn’t come at a better time,” said Philip Seng, USMEF president and CEO. “We have large supplies of pork and beef hitting the market and moving these higher volumes is certainly a challenge. But this is also presenting expanded opportunities in the international markets, as we are able to introduce new cuts and value-added products and recapture market share from our key competitors.”
Seng noted that while the upward trend in export volume is encouraging, it is also critical that exports contribute to carcass value and deliver returns for the entire supply chain. For example, per-unit values for pork exports have trended higher since June, and chilled beef exports to Asia are performing exceptionally well this year.
September beef exports reach new milestones in Japan, Korea
September beef exports were led by tremendous year-over-year growth in Japan (22,882 mt, up 49% year-over-year) and South Korea (14,840 mt, up 75%). Export value in these markets also surged, up 32% in Japan ($132.1 million) and 83% in Korea ($86.6 million). Japan’s imports of U.S. chilled beef surpassed chilled imports from Australia for the first time ever in September, and based on preliminary October data Korea’s total beef imports from the United States also topped Australian beef. For January through September, U.S. beef exports to Japan were up 20% in volume to 193,457 mt and increased 11% in value to $1.12 billion. Exports to Korea were up 33% in volume (122,695 mt) and reached $715.5 million in value — up 17% from a year ago and on pace to exceed the 2014 full-year record of $847.4 million.
Other January-September highlights for U.S. beef exports include:
- Strong September results pushed exports to Taiwan 12% ahead of last year’s pace in volume (30,064 mt) and up 2% in value ($245.6 million). The United States holds two-thirds of the chilled-beef market in Taiwan, the highest share of any Asian market.
- Despite a persistently weak peso, beef exports to Mexico were up 8% from a year ago to 174,667 mt, including a 10% increase in muscle cuts (90,724 mt). Export value to Mexico has trended lower this year, down 9% for total exports ($732.5 million) and 10% for muscle cuts ($538 million).
- While January-September exports to Hong Kong were lower in both volume (74,945 mt, down 5%) and value ($452.5 million, down 20%), September was the second consecutive month of solid year-over-year growth. September exports totaled 9,715 mt (up 19%) valued at ($59.5 million, up 17%).
- Fueled by strong growth in Indonesia and Vietnam, exports to the ASEAN region increased 18% to 17,797 mt, though value fell 5% to $97.4 million. Exports to Indonesia are well-positioned for a strong finish in 2016 following the recent easing of import restrictions in an effort to address the tight beef supply situation.
Strong momentum continues for pork exports to Mexico
After a somewhat slow first half of the year, pork exports to Mexico moved higher in August and continued to climb in September — posting the second-largest monthly volume on record (66,567 mt, up 14% from a year ago). September value to Mexico was $131.4 million, up 25% from a year ago and the highest since December 2014. For January through September, exports to Mexico pulled within 4% of last year’s record pace in volume (510,737 mt) and moved 1% higher in value ($939.7 million). USMEF’s efforts to bolster pork demand in Mexico continue to pay dividends; as per capita pork consumption has increased nearly 20% since 2011 and now exceeds 40 lb. per year.
Another positive factor for pork exports to Mexico has been the slowdown in shipments to China/Hong Kong, where the product mix tends to be similar. While still well above last year, September exports to China/Hong Kong (36,184 mt, up 26%) were down significantly from the May peak of 58,000 mt, reflecting a rebound in China’s domestic pork production. For January through September, exports to China/Hong Kong were up 70% from a year ago in volume (406,422 mt) and 57% higher in value ($787.3 million).
Lamb exports improve in September
September exports of U.S. lamb totaled 740 mt, up 19% from last year’s low volume, while export value was $1.68 million — up 26% from a year ago and matching the highest monthly value of 2016. Exports to leading market Mexico edged higher in September, and it was also a strong month for exports to the Bahamas, Canada and the Philippines. For January through September, lamb exports were 3% below last year’s pace in volume (6,520 mt) and down 7% in value ($13.4 million).
Complete January-September export results for U.S. beef, pork and lamb are available from USMEF’s statistics web page. Monthly charts for U.S. pork and beef exports are also available. If you have questions, please contact Joe Schuele at jschuele@usmef.org or call 303-226-7309.
Editor’s Note: This article is provided by the U.S. Meat Export Federation.