Tremendous First Half
for U.S Beef Exports
Beef muscle cut exports are setting a new record high.
Strong June results capped a huge first half of 2018 for U.S. beef exports, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). June pork exports were lower than a year ago for the second consecutive month, but first-half volume and value remained ahead of last year’s pace.
Beef muscle cut exports set a new volume record in June of 90,745 metric tons (mt), up 15% from a year ago. When adding variety meat, total beef export volume was 115,718 mt, up 6%, valued at $718.4 million — up 19% year-over-year and only slightly below the record total ($722.1 million) reached in May. First-half exports set a record pace in both volume and value as international customers bought a larger share of U.S. beef production at higher prices, indicating strong demand. Export volume was up 9% from a year ago to 662,875 mt while export value was just over $4 billion, up 21%. In previous years, export value never topped the $4 billion mark before August.
“It’s remarkable to think that as recently as 2010, beef exports for the entire year totaled $4 billion, and now that milestone has been reached in just six months,” noted Dan Halstrom, USMEF president and CEO. “This should be a source of great pride for the beef industry, which has remained committed to expanding exports even when facing numerous obstacles. And with global demand hitting on all cylinders, there is plenty of room for further growth.”
June exports accounted for 13.4% of total beef production, up from 12.8% a year ago. For muscle cuts only, the percentage exported was 11.3%, up from just under 10% last year. First-half exports accounted for 13.5% of total beef production and 11% for muscle cuts — up from 12.8% and 10%, respectively, last year. Beef export value averaged $313.56 per head of fed slaughter in June, up 19% from a year ago. The first-half average was $316.94 per head, up 18%.
Asian markets lead the way, but U.S. beef accelerating in nearly every region
Beef exports to leading market Japan continued to climb in June, totaling 31,147 mt (up 13% from a year ago) valued at $193.1 million (up 11%). First-half exports to Japan were up 6% from a year ago in volume at 159,354 mt while value increased 12% to $1.02 billion. This included a 4% increase in chilled beef to 73,968 mt, valued at $590.1 million (up 15%).
June exports to South Korea were up 46% from a year ago in volume (21,408 mt) and set another new value record at $154.8 million (up 68%). First-half exports to Korea climbed 36% to 113,283 mt, valued at $802.1 million — up 52% from last year’s record pace. Chilled beef exports to Korea totaled 25,400 mt (up 35%) valued at $244.8 million (up 47%).
For January through June, other highlights for U.S. beef exports include:
- Despite trending lower in June, first-half exports to Mexico were up 2% from a year ago in volume (117,524 mt) and up 10% in value ($506.7 million). Mexico is the leading destination for U.S. beef variety meat exports, which increased 8% from a year ago in value ($114.8 million) despite a 6% decline in volume (50,209 mt).
- Exports to China and Hong Kong increased 15% in volume (65,345 mt) and 43% in value ($510.8 million). First-half exports to China, which reopened to U.S. beef in June of last year, were 3,655 mt valued at $33 million. Although China’s duty rate increase on U.S. beef (from 12% to 37%) didn’t take effect until July 6, June exports slowed in part because of rising uncertainty as China’s proposed retaliatory tariff list that included U.S. beef was published in April.
- Beef exports to Taiwan continue to soar, as first-half volume increased 32% from a year ago (26,865 mt) and value was up 39% ($249.7 million). Chilled exports to Taiwan were up 34% in volume (10,974 mt) and 46% in value ($136.2 million), as the United States captured 74% of Taiwan’s chilled beef market — the highest market share of any Asian destination.
- Strong growth in Colombia helped push first-half exports to South America higher than a year ago — up 2% in volume (14,030 mt) and climbing 20% in value ($63.9 million). Export value to Chile and Peru also increased, despite volumes dipping below last year. Although still a small market, exports to Ecuador (600 mt) were the largest since 2013.
- Beef exports to the Association of Southeast Asian Nations (ASEAN) region slowed in June but still posted year-over-year gains in the first half — up 6% in volume (21,802 mt) and 24% in value ($122.8 million). This region — especially Indonesia and the Philippines — is an important destination for beef variety meat exports, which climbed 27% in value ($13.1 million) despite a slight decline in volume (6,212 mt).
- Fueled by sharply higher exports to Guatemala, Costa Rica and Panama, first-half volume to Central America increased 27% from a year ago to 6,942 mt, valued at $38.8 million (up 26%).
Complete 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.