Beef export volume was the lowest in five years, due in part to China’s failure to renew registrations for the vast majority of U.S. plants, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports totaled 93,928 metric tons (mt) in June, down 15% from a year ago and the lowest since June 2020. Export value was $769 million, down 18% and the lowest in 17 months. Shipments to Korea and Mexico were steady with year-ago levels, while exports increased sharply to Central and South America and variety meat demand strengthened in Egypt and in several emerging markets in Africa. But these gains did not fully offset the steep decline in exports to China and lower shipments to Japan.
For January through June, beef exports were 6.5% below last year’s pace at 602,221 mt, while value fell 6% to $4.92 billion.
Lack of access to China not only results directly in lost business and missed opportunities, but the U.S. beef industry is also losing the premiums generated when Chinese buyers compete for cuts that are especially popular throughout Asia, such as short plate, top blade, chuck rolls and short ribs. Without exports to China, USMEF estimates the U.S. beef industry’s lost opportunity at $150 to $165 per head of fed slaughter, or about $4 billion annually.
“The June export results really underscore the urgent need to resolve this impasse with China,” said USMEF President and CEO Dan Halstrom. “China’s tariff rate on U.S. beef is currently 32%—which is too high, but not insurmountable. The problem is, with only a few plants eligible to ship to China, the tariff rate becomes irrelevant. Consistent and transparent plant approvals, without expiration, were among the most important components of the 2020 Phase One Agreement with China, and it’s time for China to return to those commitments.”
While USMEF remains hopeful that access to China will be restored soon, the current situation highlights the importance of diversification and further development of emerging markets such as Central America and Southeast Asia.
June lamb exports
Exports of U.S. lamb muscle cuts totaled 223 mt in June, up 37% from last year’s low volume, and export value was $905,000, up 21% from a year ago. However, both export volume and value were the lowest this year. Led by growth in Mexico, Canada, Trinidad and Tobago, Leeward-Windward Islands and Turks and Caicos, January-June lamb exports increased 43% to 1,590 mt, valued at $8.3 million (up 25%). — USMEF
