Red Meat Exports Still Strong
Strong April for U.S. red meat exports, including best-ever results for beef.
April exports of U.S. beef, pork and lamb were sharply higher than a year ago in both volume and value, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Pork exports set a new volume record, fueled by tremendous demand in Mexico, while beef exports posted the best-ever results for the month of April.
Exports accounted for 14.1% of total beef production in April, up from 13.6% a year ago. For muscle cuts only, the percentage exported was 11.3%, up from 10.6%. For January through April, exports accounted for 13.4% of total production and 10.8% for muscle cuts, each up about half a percentage point from last year.
Beef export value averaged $328.46 per head of fed slaughter in April, up 16% from a year ago. Through April, per-head export value averaged $318.91, up 17%.
Even with growth in red meat production, both pork and beef exports have accounted for a larger share and contributed more dollars per head, indicating strong international demand.
Asian markets and Mexico highlight strong April for beef exports
Japan maintained its position as the leading volume and value market for U.S. beef, with April exports totaling 25,650 metric tons (mt., up 9% from a year ago) valued at $166.6 million (up 16%). Through April, exports to Japan were steady with last year’s volume at 98,090 mt. while value increased 10% to $626.1 million. This included a 4% increase in chilled beef to 47,322 mt., valued at $375 million (up 17%). Frozen shipments have regained momentum now that the 50% safeguard duty rate has expired. With a 38.5% rate in place for both chilled and frozen beef, the United States remains at a large disadvantage compared to its top competitor, Australia.
U.S. beef continues to build tremendous momentum in South Korea, where April exports were up 62% from a year ago in volume (19,185 mt.) and 72% in value ($134.8 million). For January through April, exports to Korea climbed 31% to 71,094 mt., valued at $501 million (up 45%). Chilled exports totaled 15,480 mt. (up 29%) valued at $148 million (up 40%). In contrast to Japan, U.S. beef has a slight tariff advantage versus Australia, as the United States-Korea Free Trade Agreement (KORUS) was implemented earlier than the Korea-Australia Free Trade Agreement.
“The enthusiasm for U.S. beef in these markets may be at the highest level I’ve ever seen,” Halstrom said. “In nearly every segment of the retail and restaurant sectors, U.S. beef is attracting new customers with a wider range of cuts and menu items. It’s an exciting trend that’s not just limited to Japan and Korea, with U.S. beef’s popularity also strengthening in other Asian markets and in the Western Hemisphere.”
For January through April, other highlights for U.S. beef include:
- In Mexico, exports were 5% ahead of last year’s pace in volume (78,435 mt.) and 16% higher in value ($342.4 million). Demand was especially strong in April, as exports totaled 21,396 mt. (up 22% and the largest since August), while value increased 33% to $92.1 million.
- Exports to China/Hong Kong increased 23% in volume (46,043 mt.) and surged 51% in value to $352.4 million. China still accounts for a small portion of these exports, as shipments to China were 2,299 mt. valued at $21.3 million. China reopened to U.S. beef in June of last year. While U.S. beef is not yet subject to retaliatory duties in China, it remains on the proposed retaliation list with a possible additional tariff of 25%.
- Taiwan continues to display a growing appetite for U.S. beef, especially for chilled cuts. Exports to Taiwan were 30% above last year’s pace in volume (17,500 mt.) and 42% higher in value ($168.7 million). Chilled exports were up 43% in volume (7,605 mt.) and value ($96 million), as U.S. beef captured 74% of Taiwan’s chilled beef market.
- Steady growth in the Philippines and a tripling of exports to Indonesia pushed exports to the Association of Southeast Asian Nations (ASEAN) region 35% above last year’s pace in volume (14,865 mt.) and 37% higher in value ($82 million).
- Exports to South America were up 14% in volume (8,971 mt.) and 28% in value ($43.5 million), with the main destinations being Chile, Peru and Colombia. Leading market Chile was up 20% in volume (4,137 mt.) and 14% in value ($22.5 million), though shipments slowed in March and April following a strong start to the year.
Complete April 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 online.
Editor’s Note: This article is adapted from a release by the USMEF. Export statistics refer to both muscle cuts and variety meat, unless otherwise noted. One metric ton (mt.) = 2,204.622 pounds.