U.S. beef exports soared to another new value record in August, topping the $1 billion mark for the first time, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
August beef exports totaled 132,577 metric tons (mt), up 21 percent from a year ago and the second largest volume this year, while export value climbed 55 percent to $1.04 billion. For January through August, beef exports increased 18 percent from a year ago to 955,407 mt, with value up 34 percent to $6.62 billion. Exports were also 6 percent higher in volume and up 20 percent in value compared to the record pace established in 2018.
“The August export results would be impressive under any circumstances, but achieving these totals despite all the COVID-related obstacles at home and overseas is truly remarkable,” said USMEF President and CEO Dan Halstrom.
“Our transportation and labor situation is challenging, and customers continue to face an uncertain business climate due to food service restrictions and other economic headwinds. Yet international buyers remain committed to the quality and consistency delivered by U.S. red meat, and the U.S. industry has gone to tremendous lengths to keep shipments moving.”
Halstrom emphasized the broad-based growth achieved in 2021, noting that it bodes well for both near- and long-term exports.
“Obviously breaking the $1 billion mark in a single month is a huge milestone for U.S. beef, and that’s not possible unless a wide range of markets are hitting on all cylinders,” he said.
China demand surges
Beef exports to China have climbed steadily since early 2020, when market access barriers were greatly reduced under the U.S.-China Phase One Economic and Trade Agreement. August marked the best performance to date, with exports topping 20,000 mt for the first time and value reaching $182.2 million (both volume and value were more than five times the year-ago totals). Through August, exports to China increased more than 800 percent from a year ago in both volume (119,685 mt) and value ($955.2 million), with U.S. beef accounting for 5.6 percent of China’s imports (up from less than 1 percent last year). Combined exports to China/Hong Kong climbed 139 percent year-over-year to 154,353 mt, while value reached $1.28 billion (up 148 percent).
August beef exports to Japan were the largest of the year at 31,573 mt, up 21 percent from a year ago, while value soared 79 percent to $233.6 million. For January through August, exports to Japan pulled 3 percent ahead of last year’s pace at 216,409 mt. Export value was up 14 percent to $1.51 billion, as Japan edged slightly ahead of South Korea as this year’s largest value destination for U.S. beef.
Japan has been importing more chilled U.S. beef (up 13 percent through August) to help meet strong retail demand and to minimize shipping delays, with the U.S. share of Japan’s chilled imports climbing to 52.5 percent (up from 47.6 percent a year ago).
Beef exports to Korea were down 11 percent from last August’s large volume at 24,294 mt, but export value still increased 18 percent to $216.9 million—the second largest total on record, trailing only May 2021. Through August, exports to Korea were at a record pace at 189,963 mt, up 13 percent from a year ago, while export value jumped 28 percent to $1.51 billion. Korea has also been importing record volumes of chilled U.S. beef, up 26 percent through August, with the U.S. capturing 66.3 percent of Korea’s chilled imported beef market (up from 64 percent last year).
With the strong performance from Japan and Korea and further momentum expected as food service restrictions ease, the U.S. beef industry is on track to have two $2 billion export markets for the first time in 2021.
Other highlights
Beef exports to Mexico continue to post a strong recovery, with August exports increasing 37 percent from a year ago to 16,908 mt and value more than doubling to $104.8 million (up 108 percent). Through August, exports to Mexico increased 17 percent from last year’s low total to 132,097 mt, while value jumped 38 percent to $679.1 million. Mexico is the largest volume destination for U.S. beef variety meat, with exports through August reaching 62,844 mt (up 11 percent) valued at $164.9 million (up 18 percent).
Beef demand in Central America has also rebounded in 2021, with January-August shipments on a record pace at 13,173 mt (up 59 percent), while value soared 82 percent to $79.2 million. Exports achieved strong growth in leading destination Guatemala and nearly doubled to Costa Rica, while also increasing sharply to Panama, Honduras, El Salvador and Nicaragua.
August beef exports to Taiwan were 13 percent below last year’s record volume but still the third largest on record at 6,460 mt. August exports posted a double-digit increase in value, climbing 11 percent to $70.8 million. Through August, exports to Taiwan were 2 percent below last year’s record pace at 41,636 mt, but value increased 13 percent to $412.1 million.
With a strong rebound in Colombia and solid growth in Chile and Peru, beef exports to South America increased 23 percent from a year ago to 19,383 mt, valued at $98.8 million (up 59 percent). Led by Peru, beef variety meat exports to the region were 15 percent higher at 9,619 mt and jumped impressively in value ($15.7 million, up 48 percent).
August beef export value equated to a record $468.75 per head of fed slaughter, up 55 percent from a year ago. Through August, export value was $381.91 per head, up 28 percent. Exports accounted for 16.4 percent of total August beef production and 14.2 percent for muscle cuts, each up about 1.5 percentage points from a year ago. Through August, exports accounted for 15 percent of total beef production (up from 13.3 percent) and 12.8 percent for muscle cuts (up from 11.1 percent).
August lamb exports trend lower
August exports of U.S. lamb were 32 percent below last year at 1,015 mt, while value slipped 2 percent to $1.62 million. But muscle cut exports increased significantly from last year’s low total, reaching 193 mt, led by growth in Mexico, the Caribbean and Central America.
Through August, lamb exports remained 5 percent above last year’s pace at 8,997 mt, with value up 8 percent to $12.4 million. Muscle cut exports were 10 percent higher in both volume (855 mt) and value ($5.1 million). — USMEF
