Beef muscle cut exports were higher than a year ago in October, though lower variety meat volumes pushed total beef exports slightly below last year, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
October beef exports were slightly lower than a year ago at 107,591 metric tons (mt) (down 0.4 percent), valued at $646 million (down 0.5 percent). For January through October, exports trailed last year’s pace by 7 percent in volume (1.02 million mt) and 8 percent in value ($6.2 billion). Beef muscle cut exports trended higher than a year ago in October, increasing 5 percent to 85,445 mt valued at $573.8 million (up 1 percent). January-October muscle cut exports were 5 percent below last year in volume (791,694 mt) and 8 percent lower in value ($5.48 billion).
Beef export value averaged $283.94 per head of fed slaughter in October, steady with last year. The January-October average was $293.99, down 5 percent from a year ago. Exports accounted for 12.7 percent of October beef production, down slightly from a year ago. But for muscle cuts only, the percentage increased from 10.5 percent a year ago to 10.8 percent. January-October exports accounted for 13.2 percent of total beef production and 11 percent for muscle cuts, each down about one-half percentage point from a year ago.
“While the tight labor situation continues to limit the cut and variety meat specifications available for export, red meat demand is strengthening in many critical markets,” said USMEF President and CEO Dan Halstrom. “This has been a volatile year, filled with shifts in consumer preferences and a lot of uncertainty for international buyers. But the U.S. industry has responded positively to these challenges and the demand dynamics for red meat are quite strong as we approach year’s end. When the gains made at retail over the past several months are combined with a stronger foodservice recovery, the prospects for export growth are very promising.”
Beef exports to China soaring
October beef exports to China climbed to a record 6,831 mt valued at $48.1 million, easily exceeding previous record levels reached in recent months. Through October, exports to China were up 219 percent in volume (24,709 mt) and 187 percent in value ($177.7 million) from a year ago, but have been especially strong since China’s foodservice sector rebounded from COVID-19-related restrictions imposed earlier in the year. In Hong Kong, where the foodservice recovery has seen more interruptions, January-October exports were down 5 percent from a year ago in volume (67,882 mt) and 9 percent lower in value ($541.4 million).
Beef exports to leading market Japan achieved solid growth in October, topping last year by 10 percent in volume (23,353 mt) and 8 percent in value ($146.8 million). Through October, exports to Japan trailed last year’s pace by 2 percent in both volume (257,083 mt) and value ($1.61 billion). Japan has increased imports of U.S. short plate, largely for use in gyudon beef bowl restaurants, which have performed relatively well due to their quick-serve and takeaway nature. But this growth has been partially offset by smaller volumes of chuck and loin cuts that are more reliant on full-service, sit-down dining. U.S. market share for Japan’s total beef imports was 43.7 percent through October, up from 40.5 percent last year, as Australia’s share declined from 45.5 percent to 41.2 percent.
Exports to South Korea were slightly below last October at 19,389 mt, with value down 2 percent to $135.4 million. January-October exports to Korea were 3 percent below last year’s record pace at 209,101 mt, while value was down 6 percent to $1.46 billion. However, chilled exports to Korea were up 29 percent from last year’s record at 58,370 mt, valued at $554 million (up 27 percent). U.S. market share for Korea’s chilled beef imports was 64.2 percent through October, up from 61.7 percent last year. U.S. market share for total beef imports also increased, climbing from 50.4 percent last year to 52.9 percent in 2020.
U.S. beef is also coming off a record year in Taiwan, and could set new highs in 2020. October exports to Taiwan reached 5,877 mt (up 15 percent from a year ago) valued at $46.7 million (up 9 percent). Through October, exports exceeded last year’s pace by 2 percent at 54,162 mt, though value was down 2 percent to $460.3 million. Chilled exports to Taiwan were up 21 percent to 22,140 mt, valued at $256 million (up 15 percent). The U.S. dominates Taiwan’s chilled beef market, capturing a 76 percent share in 2020.
January-October highlights
Although still below year-ago levels, October beef exports to Mexico were the largest since March at 16,783 mt, valued at $71.9 million, reflecting a recent uptick in foodservice demand. Through October, exports to Mexico were 27 percent below last year at 142,850 mt, valued at $620.6 million (down 32 percent), but USMEF expects demand to strengthen in coming months as tourism and restaurant traffic rebound.
Led by a record performance in leading market Guatemala, October beef exports to Central America were 3 percent higher than a year ago at 1,492 mt, with value up 5 percent to $8.5 million. Exports to Guatemala reached 819 mt (up 52 percent), while exports to Costa Rica (312 mt) were the highest since February. Through October, exports to the region still trailed last year by 16 percent in volume (10,762 mt) and 22 percent in value ($56.9 million).
Following a down year in 2019, beef exports to Canada have rebounded significantly. January-October volume was up 11 percent to 91,477 mt, while value climbed 13 percent to $618.6 million. Canada’s beef production is down 3 percent in 2020 and exports (through October) declined 7 percent to 346,480 mt. Canada’s January-October beef imports increased 28 percent to 162,000 mt, including strong growth from New Zealand, Uruguay, the European Union and Mexico, as well as from the U.S.
Africa continues to be a bright spot for beef variety meat exports, with January-October volume exceeding last year by 59 percent at 24,028 mt. Export value was up 56 percent to $18.1 million, led by excellent growth in South Africa, Cote d’Ivoire, Gabon, Angola and Ethiopia.
Lamb muscle volume higher
October exports of U.S. lamb totaled 956 mt, down 20 percent from a year ago, while value was down 35 percent to $1.5 million. Lamb muscle cut exports trended sharply higher in October at 426 mt (up 185 percent, driven by strong growth in Mexico and larger volumes to the Caribbean, Central America and Japan, though value declined 28 percent to just under $1 million.
Through October, lamb exports increased 31 percent from a year ago to 17,355 mt, but value was down 5 percent to $20.5 million. Lamb muscle cut volume was substantially higher at 8,203 mt (up 355 percent) with a more modest increase in export value ($12.4 million, up 7 percent). — USMEF
