August Beef Exports Struggle
US - While selected markets performed very well, the global pace of US beef exports lost ground in August compared to 2008, according to statistics released by USDA and compiled by the US Meat Export Federation.
13 October 2009
3 minute read
August beef plus beef variety meat exports declined 31 per cent in volume and 37 per cent in value compared to August 2008. For January-August, exports reached 586,525 metric tons (1.29 billion pounds) valued at $2.02 billion, a drop of 10 per cent in volume and 14 per cent in value from the same period last year. However, beef muscle cut exports as a per cent of production held steady with the January-August 2008 pace at about 7 perc ent.
Beef exports hampered by sluggish variety meat demand
The overall decline in US beef exports is largely attributable to a difficult global market for beef variety meat. January-August exports of US beef variety meat have declined 20 per cent in volume and 37 per cent in value compared to the same period last year, while muscle cut exports have declined by 4 percent and 8 per cent respectively.
Another major factor is that the top two destinations for US beef – Mexico and Canada - are performing well below last year’s level. Beef exports to Mexico (201,970 metric tons or 445.3 million pounds valued at $636.7 million) have fallen below last year’s pace by 28 per cent in volume and 35 per cent in value. Exports to Canada (96,676 metric tons or 213.1 million pounds valued at $425.8 million) are lower by 12 per cent and 17 perc ent, respectively. Partially offsetting these decreases was a 32 per cent increase in beef exports to the combined Asian markets.
“Though US beef is performing well in Asia and in other selected regions, it’s tough to overcome the declines in these neighboring markets,” USMEF President and CEO Philip Seng said. “Though we are battling some difficult economic conditions in Mexico and Canada, USMEF has had success growing demand for US beef in these markets, and we will continue to build on the partnerships and opportunities we have established.”
Beef exports to Japan are running 22 per cent ahead of last year’s volume and have increased in value by 21 per cent. Japan’s market potential continues to be hampered, however, by the 20-month age limitation imposed on US beef. The Greater China region (plus Vietnam) is also performing exceptionally well this year, with exports to Vietnam increasing by 28 per cent in volume and 41 per cent in value and exports to Hong Kong rising by 121 per cent and 81 per cent, respectively.
“We are very pleased with the level of US beef demand that has been achieved in Japan and Greater China, but we’ve still only really scratched the surface,” Mr Seng said. “The untapped potential of these markets is extraordinary, but we must gain expanded access to Japan and direct access to mainland China (which does not currently accept US beef) to realise it.”
US beef exports to the Middle East have maintained a pace roughly equal to 2008, but the region is showing an increasing appetite for US beef muscle cuts. While variety meat exports to the Middle East have declined by 11 per cent in volume and 23 per cent in value compared to last year, muscle cut exports to the region have nearly doubled in volume and increased by about one-third in value.
Beef exports to the Caribbean have increased 5 per cent in volume and value over last year, with the Bahamas emerging as one of the region’s top destinations. Exports to the Bahamas have increased by 31 per cent in volume and 24 per cent in value.
TheCattleSite News Desk
