April proved to be a solid month for U.S. beef and pork exports despite COVID-19-related interruptions in production and declining purchasing power of some key trading partners, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports were below last April’s large totals but still topped $600 million in value.
“Considering all the challenges the U.S. red meat industry faced in April, export results were encouraging,” said USMEF President and CEO Dan Halstrom. “Exporters lost several days of slaughter and processing due to COVID-19, and shipments to Mexico and some other Latin American markets declined due to slumping currencies and the imposition of stay-at-home orders. But despite these significant headwinds, global demand for U.S. beef and pork remained strong.”
While May export results will likely reflect similar obstacles, Halstrom noted that red meat production continues to recover, setting the stage for a strong second half of 2020.
“International customers are relieved to see U.S. production rebounding, solidifying our position as a reliable supplier,” he said. “This helps address a major concern for buyers, as COVID-19 has disrupted meat production in many countries—not just the United States. Demand remains robust for U.S. red meat, especially at retail, but USMEF is actively working with our foodservice customers across the globe to help ensure a strong recovery for the restaurant, catering and hospitality sectors. Many are adjusting to an entirely new business climate, and the U.S. industry assisting them in this process can help ensure that U.S. pork, beef and lamb will be featured on their menus.”
April beef exports were down 6 percent from a year ago to 98,613 metric tons (mt), with value falling 11 percent to $600.9 million. But exports achieved outstanding growth in Japan, where U.S. beef is benefiting from reduced tariffs under the U.S.-Japan Trade Agreement, and trended higher to China following late-March implementation of the U.S.-China Phase One Economic and Trade Agreement. For January through April, beef exports totaled 433,316 mt, up 5 percent from a year ago, valued at $2.66 billion (up 3 percent).
With lower April slaughter numbers, beef export value per head of fed slaughter climbed to a record $363.35, up 19 percent from April 2019. For the first four months of the year, per-head export value increased 5 percent to $326.47. April beef exports accounted for 15.9 percent of total production and 13.5 percent for beef muscle cuts, up from 13.5 percent and 11.1 percent, respectively, a year ago. Through April, exports accounted for 14.4 percent of total beef production and 11.9 percent for muscle cuts, up from 13.8 percent and 11.2 percent, respectively, last year.
Market access gains in Japan
April beef exports to leading market Japan totaled 31,280 mt, up 30 percent from a year ago, while value was the highest since August 2018 at $196.4 million (up 25 percent). Through April, exports to Japan established a record pace at 114,152 mt (up 16 percent from a year ago) valued at $719.8 million (up 13 percent).
Although beef exports to South Korea cooled in April, 2020 shipments remained ahead of last year’s record pace. April exports totaled 19,411 mt, down 14 percent from a year ago, valued at $133.9 million (down 19 percent). But through April, exports to Korea were still up 6 percent from a year ago at 83,345 mt, valued at $598.7 million (up 4 percent). Korea eased social distancing and stay-at-home requirements in May, leading to a significant increase in domestic travel and foodservice demand through its early May holidays.
After a down year in 2019, demand for U.S. beef has rebounded in Canada. April exports were up 38 percent from a year ago at 10,850 mt, with value up 35 percent to $74.7 million. Through April, exports to Canada increased 25 percent in volume (35,399 mt) and 24 percent in value ($241.1 million). Canada faced production challenges similar to the U.S., with sharply reduced slaughter volumes in April and May.
Other beef highlights
April exports to Taiwan were steady with last year at 5,093 mt, valued at $47.5 million. Through April, shipments to Taiwan were 12 percent ahead of last year’s record pace at 20,868 mt, valued at $183.1 million (up 11 percent). Taiwan is an especially strong destination for chilled U.S. beef, with the United States capturing 74 percent of the chilled beef market. Taiwan’s imports of chilled U.S. beef have jumped by 25 percent year over year, bolstered by strong retail demand.
Beef exports to China were by far the largest of the year in April at 1,321 mt, up 82 percent from a year ago, valued at $11.4 million (up 128 percent), reflecting market access improvements implemented in late March that expanded the range of U.S. cattle, beef products and processing plants eligible for China. Through April, exports to China were up 34 percent from a year ago at 3,179 mt, valued at $25.4 million (up 41 percent). Although inventories of imported grass-fed beef are abundant in China, there is strong demand for U.S. grain-fed beef.
Exports to Mexico dipped sharply in April due to COVID-19-related restrictions on businesses and consumers and the slumping Mexican peso. Through April, exports to Mexico were 9 percent below last year’s pace at 70,048 mt, valued at $331.4 million (down 11 percent). But Mexico remained the largest volume destination for beef variety meat exports, with shipments up 11 percent from a year ago at 32,872 mt, valued at $81.7 million (up 3 percent).
Africa continues to emerge as a growth region for U.S. beef variety meat. Through April, variety meat exports more than doubled from a year ago in both volume (10,091 mt, up 131 percent) and value ($7.6 million, up 122 percent), with South Africa, Gabon and Angola as the leading destinations.
Lamb exports
U.S. lamb exports have trended lower in 2020 due to declining in demand for variety meat, with January-April shipments down year over year in both volume (4,336 mt, down 20 percent) and value ($7 million, down 24 percent).
In volume terms, lamb muscle cut exports have gained traction this year, with shipments through April increasing 145 percent from a year ago to 2,031 mt. Muscle cut value, however, dropped 11 percent to $4.8 million. Volume growth has been driven by strong demand in Mexico, where exports increased 700 percent to 1,648 mt, valued at $2 million (up 123 percent). Muscle exports also increased year over year to Egypt and Kuwait. — USMEF
