Fueled by impressive growth in a wide range of destinations, U.S. beef export value shattered previous records in May, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports also reached a new volume high in May.
“The outstanding May performance is especially gratifying when you consider where red meat exports stood a year ago,” noted USMEF President and CEO Dan Halstrom. “The industry faced unprecedented, COVID-related obstacles at all levels of the supply chain, and a very uncertain international business climate.”
Halstrom cautioned that U.S. labor availability remains a major concern and limitation for the industry, and exporters continue to face significant obstacles when shipping product overseas. Due to the ongoing, fluid impact of COVID-19, foodservice restrictions also continue to affect several key markets where dine-in service is either suspended or subject to capacity limits and shorter hours, and tourism has not yet returned in many countries.
While May beef exports were expected to far exceed last year’s low totals, export volume soared to a record 133,440 metric tons (mt), up 68 percent from a year ago, and value increased 88 percent to $904.3 million. This was the third consecutive monthly value record for beef exports, which had never exceeded $800 million before March 2021. For January through May, exports reached 587,838 mt, up 15 percent from a year ago, while value increased 22 percent to $3.84 billion.
Record month to Korea
Beef export value equated to $433.18 per head of fed slaughter in May, up 53 percent from a year ago and breaking the previous record by more than $65. The January-May average was $361.29 per head, up 13 percent. Exports accounted for 17.6 percent of total May beef production and 14.9 percent for muscle cuts only, up dramatically from the year-ago ratios of 12.5 percent and 10.5 percent. January-May exports accounted for 15 percent of total production and 12.6 percent for muscle cuts, each about one full percentage point higher than a year ago.
Beef exports to South Korea were record-large in May at 29,403 mt, up 61 percent from a year ago, valued at $225.4 million (up 87 percent). This pushed January-May exports 20 percent above last year’s pace at 121,881 mt, with value up 27 percent to $912 million. Driven by excellent retail demand in traditional venues and e-commerce, Korea is the leading value market for U.S. beef in 2021. Despite some COVID-related restrictions, Korea’s foodservice sector has also been a strong performer for U.S. beef. Through May, U.S. beef captured 66 percent of Korea’s chilled beef import market, up one percentage point from last year. Chilled volume was nearly 33,000 mt, up 21 percent from a year ago.
May exports to Japan, the top volume destination for U.S. beef, rebounded to 30,721 mt (up 54 percent from a year ago) valued at $208.3 million (up 71 percent). Exports were impacted in April by a higher safeguard tariff rate, which Japan imposed for 30 days. But in mid-April, the safeguard rate expired and U.S. beef received its annual tariff reduction under the U.S.-Japan Trade Agreement, putting U.S. products back on a level playing field with major competitors, with beef muscle cuts tariffed at 25 percent. Through May, beef exports to Japan were still 2 percent below last year at 131,423 mt, but the export value was up 3 percent to $864.2 million.
Beef exports to China totaled 16,472 mt in May, only slightly trailing the April record, valued at $130.2 million. With expanded beef access to China in place for more than one year under the Phase One Economic and Trade Agreement, exports to the world’s largest beef import market continue to climb. January-May exports to China reached 64,763 mt valued at $474.7 million – each up about 1,200 percent year-over-year and already establishing new annual records. The United States is now the largest supplier of grain-fed beef to China and accounted for 4.4 percent of China’s total beef imports in the first five months of the year.
Large May lamb exports
Led by larger shipments to Mexico and the Caribbean, May exports of U.S. lamb were the highest of the year at 1,377 mt (up 43 percent from a year ago), valued at $1.82 million (up 67 percent). Through May, exports were 53 percent above last year’s pace at 5,733 mt, with value increasing 16 percent to $7.43 million. While variety meat demand from Mexico accounted for most of the export volume growth for U.S. lamb, muscle cut shipments also increased to Mexico, Canada, Bermuda and Trinidad and Tobago. — USMEF
