Beef exports finished the year with very strong momentum, with fourth quarter volume up 4.5 percent from 2019 and posting one of the best months on record in December, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports were heavily impacted by foodservice restrictions in many major markets but trended higher late in the year, bolstered by very strong retail and holiday demand.
“Consumers across the world responded to the COVID-19 pandemic by seeking high-quality products they could enjoy at home, and U.S. beef and pork definitely met this need,” said USMEF President and CEO Dan Halstrom. “We expect these retail and home-delivery demand trends to continue even as sit-down restaurant dining recovers, creating robust opportunities for U.S. red meat export growth.”
December beef exports totaled 119,892 mt, up 8 percent from December 2019 and the largest in nearly 10 years. Export value was $744 million, up 9 percent from a year ago and the second highest total on record (trailing only July 2018). December exports of beef muscle cuts were the second largest ever at 93,941 mt, climbing 11 percent year over year in both volume and value ($659.8 million). For 2020, beef muscle cut exports were down 2 percent year over year at 976,953 mt and fell 5 percent in value to $6.77 billion.
Beef export value equated to $349.10 per head of fed slaughter in December, up 9 percent year over year and the highest since April. The full-year average was $302.31 per head, down 2 percent from 2019. December exports accounted for 15 percent of total beef production and 12.6 percent for muscle cuts, exceeding the December 2019 ratios of 14.3 percent and 11.6 percent, respectively. 2020 Exports accounted for 13.5 percent of total beef production and 11.3 percent for muscle cuts, compared to 14.1 percent and 11.4 percent, respectively, in 2019.
Asian markets shine
Demand for U.S. beef exports proved resilient in most Asian markets in 2020, though with substantial shifts from foodservice to retail in some destinations. The limited labor situation challenged exports of certain items, especially variety meats, although December exports of beef variety meats were the largest since March.
Exports to leading market Japan slipped 2 percent year over year to 306,140 mt, with value holding steady at $1.94 billion. Beef muscle cut exports to Japan climbed 5 percent to 259,412 mt, with value up 1 percent to $1.57 billion. U.S. beef regained market share in Japan, climbing from 41 percent in 2019 to 44 percent in 2020, benefiting from the duty reductions in the U.S.-Japan Trade Agreement.
Beef exports to South Korea also held up relatively well, though shipments trailed the 2019 record by 4 percent at 246,231 mt, valued at $1.72 billion (down 6.5 percent). U.S. beef made substantial market share gains in Korea in 2020, capturing nearly 53 percent of total imports (up from 51.5 percent in 2019) and 64 percent of chilled imports (up from 62 percent). Korea’s imports of U.S. chilled beef set another new record in 2020, totaling 62,825 mt (up 14.5 percent).
The U.S.-China Phase One Economic and Trade Agreement took effect in March, making beef from a much larger percentage of U.S. cattle eligible for the rapidly growing Chinese market. The U.S. industry capitalized in a big way, with exports quadrupling year over year to a record 42,813 mt, valued at $310.2 million (up 260 percent). Since September, the U.S. has surpassed Australia as the largest supplier of grain-fed beef to China.
Other 2020 highlights
Exports to Taiwan set a new volume record for the fifth consecutive year at 63,752 mt, slightly exceeding 2019, though export value slipped 3 percent to $551.7 million. The U.S. continued to dominate Taiwan’s chilled beef imports in 2020, capturing 76 percent market share.
While beef exports to Mexico were significantly lower year over year, demand has rebounded in recent months. In December, beef muscle cut exports to Mexico reached 16,647 mt, the largest volume since 2009. Total December export volume was 27,230 mt, up 25 percent from a year ago, with value up 23 percent to $127 million. For the full year, exports to Mexico finished 18 percent below 2019 at 192,951 mt, valued at $852.6 million (down 23 percent).
Following a down year in 2019, beef exports to Canada rebounded to 108,227 mt, up 8 percent year over year. Export value increased 11 percent to $727.5 million.
Africa continued to emerge as a growing destination for beef variety meats, led by strong demand in South Africa, Gabon, Cote d’Ivoire and Ethiopia. Variety meat exports to the region increased 35 percent to 26,450 mt, valued at $20.1 million (up 32 percent).
Record year for lamb exports
2020 Exports of U.S. lamb and lamb variety meat increased 27 percent to a record 20,045 mt, though export value fell 9 percent to $23.8 million. Export growth was led by leading market Mexico, where volume climbed to 18,927 mt (up 38 percent) valued at $17.4 million (up 25 percent). Other markets in which U.S. lamb exports achieved growth in 2020 included Bermuda, Hong Kong, Japan and Bahrain. — USMEF
