September beef exports edged higher in volume and jumped substantially in value, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Although lower than the previous month, September beef export volume improved 2 percent from a year ago to 103,552 metric tons (mt). Export value topped $600 million for the fourth consecutive month at $616.9 million, up 16 percent from a year ago. January-September volume was 926,985 mt, up 9 percent from the first three quarters of 2016, while export value was $5.27 billion—up 16 percent year-over-year and 2 percent above of the record pace established in 2014.
Beef exports accounted for 12.5 percent of total production in September, down one percentage point from a year ago, but the percentage of muscle cuts exported increased from 10.2 percent last year to 10.4 percent. For January through September, beef exports accounted 12.8 percent of total production (down from 13.2 percent) and 10.1 percent for muscle cuts (steady with last year).
September beef export value averaged $289.14 per head of fed slaughter, up 13 percent from a year ago. January-September export value averaged $277.31 per head, up 10 percent.
Hurricanes dampened demand
Strong momentum for U.S. beef continued in most Asian and Western Hemisphere markets in September, though exports faced some new headwinds. Exports to leading market Japan held up well in September despite Japan’s recent duty rate increase (from 38.5 percent to 50 percent) on imports of frozen U.S. beef. September exports of frozen beef to Japan were up 44 percent from a year ago to 10,512 mt, while chilled exports increased 38 percent to 12,663 mt.
For January through September, exports to Japan increased 22 percent in volume (236,536 mt) and 30 percent in value ($1.45 billion). This included a 42 percent increase in chilled beef exports (113,347 mt) valued at $833 million (up 45 percent). Frozen beef was up 15.5 percent to 85,432 mt, valued at $334 million (up 23 percent).
“USMEF is pleased to see solid demand continuing for U.S. beef in Japan, and this is a testament to the strong, well-established relationships with our loyal customers and the success of U.S. beef promotional campaigns in Japan,” Seng said. “But the 11.5 percent duty rate increase needs to be closely monitored to ascertain where market dislocation will occur. We are watching this situation carefully and remain very concerned about the widening gap in duty rates between U.S. beef and Australian beef.”
Through the first three quarters of 2017, market-specific highlights for U.S. beef include:
- Fueled by rapidly growing demand in South Korea’s retail sector, export volume to Korea increased 7 percent from a year ago to 131,774 mt. Export value ($856.9 million, up 20 percent) is on pace to easily break last year’s record of $1.06 billion. These totals include an 85 percent increase in chilled beef exports (31,648 mt), valued at $283 million (up 92 percent), as U.S. beef continues to gain market share in Korea.
- Taiwan is also an outstanding destination for chilled U.S. beef, with the U.S. holding more than 70 percent of the chilled beef market. Through September, chilled exports to Taiwan were up 19 percent in volume (13,615 mt) and 24 percent in value ($162 million). Total exports to Taiwan increased 9 percent in volume (32,894 mt) and 21 percent in value ($297.5 million).
- Within North America, September beef exports slowed slightly from a year ago in volume to both Mexico and Canada, but increased in value. Through September, exports to Mexico remained slightly ahead of last year’s pace in volume (175,585 mt, up 1 percent) and slightly lower in value ($726.9 million, down 1 percent). Exports to Canada were up 3 percent in volume (86,697 mt) and 6 percent in value ($603.8 million).
- Strong growth in the Philippines, Indonesia and Vietnam pushed beef exports to the ASEAN region 68 percent ahead of last year’s pace in volume (29,974 mt) and 53 percent higher in value ($149.1 million). The region is especially strong for beef variety meat, with exports through September more than doubling from a year ago in both volume (8,535 mt, up 125 percent) and value ($15.6 million, up 135 percent).
- With hurricanes inflicting severe damage on several Caribbean islands, September beef exports to the region slipped dramatically from a year ago in both volume (1,653 mt, down 22 percent) and value ($9.9 million, down 48 percent). Through September, exports to the Caribbean were still up 4 percent from a year ago in volume (17,759 mt), but value fell 6 percent to $118.2 million.
Volume slumps, values jump
September exports of U.S. lamb were just 572 mt, down 23 percent from a year ago, but value reached $1.85 million—up 10 percent.
For the first three quarters of the year, exports slipped 14 percent in volume (5,579 mt) but were also up 10 percent in value to $14.7 million. The volume decline is due to slow demand for lamb variety meat, as muscle cut exports through September were up substantially in both volume (1,740, up 21 percent) and value ($10.5 million, up 24 percent), including year-over-year increases to Mexico, the Caribbean, Canada, Central America and Taiwan. — USMEF
