U.S. beef export value took another step toward a likely full-year value record while lamb exports struggled despite seeing higher values, according to export results released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports reached 111,915 metric tons (mt) in November, down 3 percent from the large volume of November 2016 but still the second-highest monthly total of the year. Export value was also the second-largest of 2017 at $666.4 million, up 8 percent year over year. January-November export volume totaled 1.15 million mt, up 7 percent, while export value climbed to $6.6 billion—up 15 percent from a year ago and slightly above the record pace established in 2014.
Beef exports accounted for 13.1 percent of total production in November, the highest since July but down from 14.9 percent in November 2016. For muscle cuts only, the percentage exported was 10.9 percent—down from 11.7 percent a year ago. For January through November, beef exports accounted for 12.8 percent of total production (down from 13.5 percent in 2016) and 10.3 percent for muscle cuts (steady with 2016).
November beef export value averaged $306.63 per head of fed slaughter, up 4 percent from a year ago and the highest in nearly three years. January-November export value averaged $282.34 per head, up 9 percent.
Lamb exports continued to struggle in volume export in November, but saw increases in export value.
Asia drives beef export growth
Japan continued to be the pacesetter for U.S. beef exports in November, with volume increasing 5 percent year-over-year to 24,819 mt and value up 6 percent to $159.2 million. This pushed Japan’s 11-month totals to 285,336 mt (up 20 percent) valued at $1.75 billion (up 27 percent and a new post-BSE record). Chilled beef exports reached 137,707 mt through November, up 35 percent, valued at a record-high $1.02 billion, up 39 percent.
Approaching Chinese New Year, beef exports to Hong Kong gained momentum in October and climbed again in November, with volume up 20 percent from a year ago to 16,106 mt (the largest since December 2014) and value soaring 43 percent to $119 million. Through November, exports to Hong Kong climbed 13 percent in volume (113,440 mt) and 26 percent in value ($765 million).
November exports to China were 655 mt, the largest since the mid-June market opening, valued at $5.7 million. Through November, exports reached 2,225 mt valued at $22.8 million.
“U.S. beef has only really scratched the surface in China, so exports are still relatively small but the value per pound is among the highest in the world,” USMEF President and CEO Dan Halstrom said. “This makes China an exciting addition to our strong portfolio of Asian markets, where beef exports continue to expand at an impressive rate. 2017 was a tremendous year for U.S. beef in Asia, and the coming year looks very promising as well.”
Other January-November highlights for U.S. beef exports include:
- Driven by strong retail demand and reduced tariffs under Korea-U.S. Free Trade Agreement (KORUS), beef exports to South Korea have already set a new value record. Through November, exports increased 5 percent year over year in volume to 167,532 mt, valued at $1.1 billion—up 19 percent from a year ago and edging past the 2016 record of $1.06 billion. Chilled beef exports to Korea accelerated at an even faster rate, jumping 88 percent in volume to a record 41,086 mt—valued at $368.5 million, up 93 percent.
- A new value record was also established in Taiwan, where U.S. beef holds more than 70 percent of the chilled beef market. Through November, exports to Taiwan increased 3 percent from a year ago in volume (40,402 mt) while value climbed 16 percent to $369.9 million—breaking the 2016 record of $362.8 million.
- November beef exports to Mexico dipped 8 percent in volume from a year ago to 20,161 mt, but value increased 2 percent to $80.8 million. Through November, exports to Mexico were steady with the first 11 months of 2016 in both volume (216,765 mt) and value ($894.1 million). Mexico is the second-largest volume market for U.S. beef (behind Japan) and ranks third in value (after Japan and Korea).
- Strong year-over-year growth in Indonesia, the Philippines and Vietnam pushed January-November exports to the ASEAN region to 38,039 mt (up 46 percent year over year), valued at $193.3 million (up 39 percent).
- Led by Chile, Peru and Colombia, beef exports to South America have already set new annual records. Through November, exports increased 27 percent from a year ago in volume (26,786 mt) and 23 percent in value ($106 million). Since shipments began in April, exports to Brazil have shown solid potential, reaching 1,998 mt valued at $7 million.
Hard times despite value growth
U.S. lamb exports were 520 mt in November, down 36 percent from a year ago and the lowest since April, while export value fell 11.5 percent to $1.75 million. For muscle cuts only, November volume was down 12 percent to 284 mt but value increased 2 percent to $1.51 million.
Through November, lamb exports dropped 16 percent from a year ago in volume (6,659 mt) but increased 6 percent in value to $17.8 million. Muscle cuts exports moved higher year over year in both volume (2,197 mt, up 10 percent) and value ($12.89 million, up 18 percent). Despite an unusually severe hurricane season, muscle cut exports to the Caribbean increased 12 percent in volume (596 mt) and 37 percent in value ($4.84 million). — USMEF
