U.S. beef exports are poised to break $7 billion this year for only the second time, according to October export results released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports reached 111,287 metric tons (mt) in October, up 5 percent from a year ago, valued at $662 million, up 18 percent. These were the second-largest monthly totals of 2017, trailing only August. For January through October, exports totaled 1.038 million mt, up 9 percent year-over-year, valued at $5.93 billion—up 16 percent from a year ago and slightly ahead of the record value pace established in 2014.
Beef exports accounted for 13 percent of total production in October, the highest since July but down from 13.9 percent last year. The percentage of muscle cuts exported was steady with last year at 10.7 percent. For January through October, beef exports accounted for 12.8 percent of total production (down from 13.3 percent last year) and 10.2 percent for muscle cuts (steady with last year).
October beef export value averaged $301.88 per head of fed slaughter, up 12 percent from a year ago and the highest since December 2016. January-October export value averaged $279.85 per head, up 10 percent.
Asia drives outstanding growth
Japan continued to be the pacesetter for U.S. beef exports in October, with volume climbing 19 percent from a year ago to 23,981 mt and value up 23 percent to $147.1 million. This pushed January-October volume to 260,517 mt (up 22 percent) valued at $1.59 billion—up 29 percent and already setting a new single-year record. Chilled beef continues to drive export growth to Japan, with chilled exports up 40 percent in volume (124,699 mt) and 43 percent in value ($918.8 million).
“The U.S. beef industry has really broadened its reach in Japan, expanding the range of cuts offered and the retail and foodservice venues in which they are featured,” Dan Halstrom, USMEF senior vice president for marketing, said. “But USMEF remains concerned about market access barriers in Japan, as we face significantly higher tariffs than our main competitor, Australia, and import safeguards that could hinder further growth.”
Exports to South Korea continued to climb in October, up 2 percent in volume (17,224 mt) and 24 percent in value ($122.4 million) from a year ago. Through October, exports totaled 148,998 mt (up 7 percent) valued at $979.3 million—20 percent above last year’s record pace. Demand for U.S. chilled beef is especially strong in Korea’s retail sector, with chilled beef exports up 88 percent to 36,773 mt valued at $329 million, up 93 percent.
Other January-October highlights for U.S. beef exports include:
• Despite a slow start in 2017, exports to Hong Kong climbed 12 percent from a year ago in volume (97,334 mt) and 23 percent higher in value ($646.1 million). Since the mid-June market reopening, exports to China have totaled 1,570 mt valued at $17.2 million.
• While beef exports to Taiwan slowed in October, January-October results remained 4 percent ahead of last year’s pace at 36,719 mt, valued at $335.6 million (up 18 percent). With a strong finish, Taiwan will easily top last year’s value record of $362.8 million.
• Led by strong increases in Indonesia and Vietnam, beef exports to the ASEAN region increased 57 percent in volume (34,777 mt) and 46 percent in value ($173.5 million). Exports were also higher year-over-year to the Philippines.
• A bounceback year in Peru and strong demand in Chile and Colombia have beef exports to South America on a record pace. Exports increased 27 percent from a year ago in volume (24,236 mt) and 23 percent in value ($93.3 million).
• Beef exports within North America have remained solid in 2017, with shipments to Mexico increasing slightly from last year in both volume (196,604 mt) and value ($813.3 million). Exports to Canada increased 4 percent in volume (96,401 mt) and 7 percent in value ($667 million).
Lamb exports lower in October
October exports of U.S. lamb were 560 mt, down 7 percent from a year ago, and value slipped 6 percent to $1.32 million. For the first 10 months of the year, exports declined 14 percent in volume (6,139 mt) but increased 8 percent in value to just under $16 million.
The volume decline is due to slow demand for lamb variety meat, as muscle cut exports through October were up 15 percent in volume (1,913 mt) and 20 percent in value ($11.38 million). Muscle cut exports have increased year-over-year to leading markets Mexico, the Caribbean and Canada, while also showing promising growth in Central America and Taiwan. — USMEF
