U.S. beef exports recorded double-digit gains from a year ago, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Through February, exports of beef are on a record pace and account for a growing share of record-large U.S. production.
U.S. beef exports achieved outstanding growth in February, increasing 18 percent from a year ago to 112,021 metric tons (mt) and climbing 17 percent in value ($681 million). These results pushed January-February volume 10 percent above last year’s pace at 219,395 mt and 11 percent higher in value ($1.35 billion).
Beef export value per head of fed slaughter was $343.03 in February, up 11 percent from a year ago and the highest since December 2018. The January-February average was $321.86, up 7 percent. Exports accounted for 15.3 percent of total February beef production, up from 13.9 percent a year ago, and 12.4 percent for muscle cuts only (up from 11 percent). Through February, exports accounted for 14.1 percent of total beef production and 11.5 percent for muscle cuts, up from 13.5 percent and 10.7 percent, respectively, last year.
With COVID-19 dominating all news headlines, including those related to global trade, USMEF President and CEO Dan Halstrom said the February export results confirmed that global demand for high-quality protein remains strong and resilient.
“By February, COVID-19 had emerged as a major health concern in several key Asian markets and was certainly impacting consumer and business activity, so it is great to see U.S. pork and beef exports achieve such strong growth,” Halstrom said. “Obviously these are uncertain economic times and the road ahead remains very challenging, but these results are really a great testament to our international customer base. In the face of unprecedented obstacles, importers, retailers and restaurateurs are finding creative ways to meet consumer needs, and with record production the U.S. industry is well-positioned as a supplier. While we are in an unusual business climate that requires a lot of flexibility and innovation, there are excellent opportunities for red meat exports to continue to build momentum.”
February beef exports climb
Japan, South Korea and Taiwan fueled beef export growth in February, but shipments also increased to key destinations in the Western Hemisphere, Africa and the Middle East.
February beef exports to leading market Japan increased 24 percent from a year ago to 27,099 mt and climbed 20 percent in value to $171.4 million. Through February, exports exceeded last year’s pace by 10 percent in volume (52,304 mt) and 7 percent in value ($329.5 million). With a level tariff playing field, U.S. beef is regaining chilled market share in Japan, boosted by Japan’s strong retail demand. On April 1, the start of the Japanese fiscal year brought another reduction in tariff rates (to 25.8 percent for beef muscle cuts), and the Japanese yen remains relatively strong.
Demand for U.S. beef continued to build momentum in Korea, where February exports totaled 23,532 mt (up 33 percent from a year ago) valued at $167.7 million (up 32 percent). This pushed the two-month total 16 percent ahead of last year’s record pace in volume (41,326 mt) and 14 percent higher in value ($298.4 million). U.S. beef is also gaining further market share in Korea, with strong retail demand and increased sales through e-commerce platforms.
Other January-February highlights for U.S. beef exports include:
Exports to Mexico were 5 percent above last year’s pace at 41,862 mt, valued at $217 million (up 10 percent). Mexico is the largest volume market for U.S. beef variety meat, and January-February variety meat exports climbed 16 percent from a year ago in both volume (18,182 mt) and value ($49.3 million).
Exports to Taiwan, which is an especially strong destination for chilled beef cuts, were 20 percent above last year’s record pace in volume (10,051 mt) and 17 percent higher in value ($86.2 million).
Exports to China/Hong Kong were down 16 percent to 12,501 mt, with value falling 8 percent to $111.2 million. But for China specifically, exports were up 12 percent to 1,408 mt, valued at $10.4 million (up 4 percent). With access to China now expanded (as of late March), USMEF expects momentum to build for U.S. beef in the world’s largest import market.
Strong growth in Peru and Colombia pushed exports to South America 26 percent above a year ago to 4,367 mt, valued at $20.6 million (up 11 percent).
Guatemala and Panama fueled export growth to Central America, where volume climbed 22 percent to 2,868 mt, valued at $16.4 million (up 25 percent).
Strong variety meat shipments to South Africa, Gabon, Angola, Cote d’Ivoire, and Mozambique pushed exports to Africa well ahead of last year’s pace. Variety meat exports climbed 40 percent to 4,186 mt, valued at $3.2 million (up 37 percent), with livers and kidneys being the main items exported to the region. Total exports to Africa were up 37 percent in volume (4,226 mt) and 18 percent in value ($3.7 million). — USMEF
