U.S. beef exports greatly exceeded previous volume and value records in 2021, surpassing $10 billion for the first time, according to year-end data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
December beef exports totaled 121,429 metric tons (mt), up 1 percent from a year ago, while value climbed 33 percent to $991.8 million—the third largest month on record. These results pushed the 2021 volume to 1.44 million mt, up 15 percent from a year ago and 7 percent above the previous record set in 2018. Export value soared to $10.58 billion, up 38 percent from 2020 and shattering the previous record (also from 2018) by 27 percent.
“The beef export results are truly remarkable, especially considering the COVID-related obstacles in the global food service sector and all the supply-side and logistical challenges faced by the U.S. industry,” said USMEF President and CEO Dan Halstrom. “Obviously our large Asian markets accounted for much of the growth, but it really takes broad-based global demand to reach these impressive levels. So this success story is not just about Korea, Japan and China—but also a strong performance in Taiwan, excellent growth in Central and South America and a rebound in Mexico and Southeast Asia.”
Japan remained the leading volume destination for U.S. beef exports in 2021 at 320,737 mt, up 5 percent from 2020 and the second largest of the post-BSE era. Export value climbed 22 percent to a record $2.376 billion but finished a close second to South Korea. The U.S. industry remains concerned about Japan’s import safeguard, which resulted in a higher tariff rate being imposed on U.S. beef in late March and early April of last year. Without an adjustment to the safeguard threshold, a similar scenario is possible in 2022 and highly likely in years to come.
Beef exports to Korea totaled 280,143 mt, up 14 percent and eclipsing the previous record set in 2019. Export value soared 38 percent to $2.382 billion—not only a record for Korea, but the highest value achieved in any destination. Korea’s surging demand for U.S. beef has been driven largely by growth in the retail sector, both in traditional retail venues and e-commerce platforms. U.S. beef also continues to benefit from the phase-out of Korea’s import duties as the tariff rate under the Korea-U.S. Free Trade Agreement (FTA) dropped to 10.7 percent for 2022, down from 40 percent prior to the implementation of the FTA.
Capitalizing on the market access gains included in the U.S.-China Phase One Economic and Trade Agreement, beef exports to China/Hong Kong also broke the $2 billion mark at $2.09 billion, up 114 percent from 2020, while volume climbed 87 percent to 240,827 mt. Direct exports to China, which started to gain significant traction in mid-2020, jumped 346 percent in volume (190,803 mt) and 413 percent in value ($1.59 billion). U.S. beef accounted for 6 percent of China’s total imports on a volume basis and 11 percent by value. Grain-fed beef now accounts for an estimated 11 percent of China’s imports, with the U.S. as the largest supplier, providing approximately 68 percent of China’s grain-fed imports.
Other 2021 highlights
Though beef exports to Taiwan dipped slightly in volume (63,095 mt, down 1 percent from 2020), export value climbed to $668 million—up 21 percent from 2020 and breaking the previous (2019) record by more than $100 million. The U.S. continues to dominate Taiwan’s chilled beef imports, capturing an 81 percent market share in 2021.
Beef exports to Mexico partially rebounded in 2021, though shipments remained below pre-COVID levels. Exports increased 4 percent from a year ago to 200,628 mt and climbed 24 percent in value to $1.06 billion. Mexico is the largest volume destination for beef variety meat exports, which increased 9 percent to 97,642 mt and jumped 16 percent in value to $264.1 million.
Fueled by excellent growth in a range of markets, beef exports to Central America set new records for both volume (20,991 mt, up 52 percent from a year ago) and value ($137.3 million, up 81 percent). U.S. beef has a growing presence in the region’s rapidly expanding retail sector and has capitalized on the gradual easing of COVID-related food service restrictions. Beef exports to Central America have also benefited greatly from the phase-out of import duties through the Central America-Dominican Republic FTA.
Beef exports to Colombia surged in 2021, more than doubling year over year in both volume (9,359 mt, up 106 percent) and value ($40.7 million, up 105 percent) and easily surpassing 2019 records. With shipments also trending higher to Chile and Peru, exports to South America reached 31,802 mt (up 32 percent), valued at $177.6 million (up 82 percent). U.S. beef also faces zero duties in these FTA partner countries.
Led by a sharp rebound in the Dominican Republic, beef exports to the Caribbean increased 31 percent from a year ago to 25,098 mt, while value climbed 69 percent to $191.5 million. Exports also increased year over year to Jamaica and the Bahamas.
Exports to Indonesia set new records in 2021, reaching 27,010 mt (up 42 percent), valued at $118.4 million (up 65 percent). Indonesia is a key destination for beef variety meat, which accounted for 45 percent of the total export volume.
Rebounding from a down year in 2020, global exports of U.S. beef variety meat increased 8 percent to 300,297 mt and set a new value record, topping $1 billion for the first time ($1.09 billion, up 24 percent).
Beef export value per head of fed slaughter equated to a record $407.22 in 2021, up 35 percent from a year ago. Exports accounted for 15 percent of total beef production and 12.8 percent for muscle cuts only, up significantly from the respective 2020 ratios of 13.5 percent and 11.3 percent.
Lamb exports
December exports of U.S. lamb were 1,613 mt, up 16 percent from a year ago, while export value climbed 32 percent to $2.49 million—the highest monthly value since July 2014. For 2021, lamb exports increased 9 percent to 14,053 mt, valued at $20.45 million (up 19 percent). While volume growth was driven primarily by lamb variety meat exports to Mexico, lamb muscle cut exports rebounded to the Caribbean—achieving impressive growth in the Dominican Republic and increasing to Bermuda, the Bahamas, Trinidad and Tobago and Turks and Caicos. — USMEF
