Coming off a record-breaking performance in 2021, U.S. beef exports remained red hot in January, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports totaled 119,066 metric tons (mt), up 13 percent from a year ago, while value soared 57 percent to $1.03 billion. This was the third highest value total on record—trailing only August and November of last year—and export value per head of fed slaughter set a new record, topping $500 for the first time.
“This is a truly remarkable run for U.S. beef exports, and the momentum is not limited to our large Asian markets,” said USMEF President and CEO Dan Halstrom. “Regions such as Central America and the Caribbean contributed significantly to January export growth, and export value made strong gains in the Middle East.”
Huge month for Korea
Beef exports to South Korea reached a record $2.38 billion in 2021, and demand didn’t miss a beat in January. Exports to Korea climbed 39 percent from a year ago to 29,578 mt, while export value nearly doubled to a record $316.5 million (up 99 percent). While U.S. beef’s pandemic-era growth in Korea has been largely driven by soaring retail demand, the food service outlook is also brightening, as health officials recently loosened social distancing requirements and allowed longer operating hours for restaurants. Korea’s tariff rate on U.S. beef, which was 40 percent before the U.S.-Korea Free Trade Agreement entered into force, dropped to 10.7 percent this year and will reach zero at the end of 2026.
Demand for U.S. beef in China/Hong Kong remained strong in January, climbing 69 percent from a year ago to 19,772 mt, while export value more than doubled ($194.2 million, up 115 percent). USMEF projects continued growth for U.S. beef in the region this year, though at a more moderate rate than in 2021, when export volume increased 87 percent year over year to more than 240,000 mt. Meaningful access to China—which was first achieved in early 2020 through the Phase One Economic and Trade Agreement—is also a supportive factor in the prices U.S. beef cuts command in other Asian markets.
January beef exports to Japan were up 4 percent from a year ago to 22,936 mt, while value jumped an impressive 32 percent to $181.7 million. Exports were bolstered by a strong performance for beef variety meat—mainly tongues and skirts—which increased 20 percent in volume (4,367 mt) and 69 percent in value ($41.8 million).
Other January results
Exports to Taiwan raced to a fast start in 2022, climbing 80 percent to 6,914 mt, while export value jumped 115 percent to $83 million. However, the large increase in January was due in part to delayed shipments that would normally have arrived before the end of the year.
Beef exports to the Middle East were relatively steady in volume (6,761 mt, down 1 percent) but increased 29 percent in value to $26.3 million, led by strong value growth in Egypt, the United Arab Emirates and Kuwait.
Led by excellent value growth in Japan, Egypt, Mexico, China/Hong Kong, Vietnam, Gabon and Honduras, beef variety meat exports increased 36 percent in value to $93 million, despite a 3 percent drop in volume (22,977 mt).
A rebound in food service demand helped beef exports to the Caribbean climb 28 percent from a year ago to 1,857 mt, while value doubled to $17 million, led by strong results in the Dominican Republic, Jamaica and the Bahamas.
Beef exports to Central America continued to expand in January, increasing 14 percent from a year ago to 1,803 mt, while value jumped 45 percent to $13.1 million.
January beef export value equated to a record $503.68 per head of fed slaughter, up 62 percent from a year ago and topping $500 for the first time. Exports accounted for 15.4 percent of total beef production and 13.3 percent for muscle cuts, up substantially from the year-ago ratios of 13.3 percent and 11 percent, respectively.
Lamb exports higher
January exports of U.S. lamb totaled 1,533 mt, up 49 percent from a year ago, while export value climbed 59 percent to $1.9 million. Variety meat exports to leading market Mexico accounted for $1.3 million of the value total, a year-over-year increase of 73 percent and a new monthly record. Variety meat volume to Mexico was the fourth largest on record at 1,444 mt, up 53 percent. Lamb muscle cut exports to Mexico also increased substantially, with muscle cut demand also posting gains in the Caribbean and Panama. — USMEF
