January Meat Exports Show Mixed Results

US - The pace of US beef and pork exports cooled somewhat in January, according to statistics released by USDA and compiled by the US Meat Export Federation (USMEF). Muscle cut exports held up fairly well in January, but total exports were held down by a very sluggish market for variety meat.

15 March 2010

4 minute read

North America

Beef plus beef variety meat exports were nine per cent higher in volume and six per cent higher in value than in January 2009. Beef muscle cuts fared even better, rising 16 per cent in volume and 15 per cent in value. However, these totals represented a decline from December 2009 and were also lower than the 2009 monthly average. Beef variety meat exports were down only four per cent in volume but plummeted 26 per cent in value compared to January 2009.

Pork plus pork variety meat exports were eight per cent lower in both volume and value than in January 2009, but variety meat also weighed heavily on these results. Muscle cuts fell only four per cent in volume and five per cent in value, while variety meat exports declined 18 per cent in both categories.

Beef exports up from year-ago slump, but pace slowed compared to fall 2009

January beef/beef variety meat exports totaled 72,596 metric tons (160 million pounds) valued at just under $248 million. This compares favourably to the 66,457 metric tons (146.5 million pounds) valued at $233 million exported in January 2009. However, volume was down six per cent from December and three per cent below the 2009 monthly average. Value was down five per cent from December and three per cent below the monthly 2009 average. Export value per steer and heifer slaughtered totaled just under $119, with exports accounting for 10 per cent of beef/beef variety meat production.

“The good news is beef exports are off to a better start to 2010 than they were last year, when the economic climate was just brutal,” said USMEF President and CEO Philip Seng. “But in coming weeks, our focus is on reclaiming the momentum we had established late in the year with our holiday marketing campaigns and other beef promotions.”

Exports are on the rise to Canada, the second-largest market (after Mexico) for US beef. January exports were 11,064 metric tons (24.4 million pounds) valued at $47.6 million. This was a 21 per cent increase in volume and 29 per cent increase in value over January 2009.

Key Asian markets also continued to perform extremely well compared to a year ago, including:

Japan – 5,602 metric tons (12.4 million pounds) valued at $27.9 million, an increase of 38 per cent in volume and 28 per cent in value.

Taiwan – 3,017 metric tons (6.7 million pounds) valued at $17.5 million, an increase of 166 per cent in volume and more than triple (+204 per cent) the January 2009 value.

Hong Kong – 2,037 metric tons (4.5 million pounds) valued at $8.4 million, nearly a five-fold increase in both volume (+379 per cent) and value (+378 per cent).

South Korea – 7,327 metric tons (16.2 million pounds) valued at $27.2 million. This represented a three per cent increase in volume and a slight decline in value from January 2009. However, it was 67 per cent higher in volume and 56 per cent higher in value than the 2009 monthly average, revealing a remarkable recovery from the mid-2009 slump in exports to Korea.

“The turnaround in our beef exports to Korea continues to solidify,” Seng said. “We are very pleased with the results of our recent imaging campaign, which definitely has captured the attention of our competitors in this critical market.”

Beef exports to the Middle East continued their positive momentum in January, led by strong sales in Egypt and a growing presence in the United Arab Emirates (UAE) and Saudi Arabia. Exports to the European Union are also growing, but January EU import data – considered a more reliable measure for this unique market - are not yet available.

The trend for beef exports to Mexico is positive, with January volume up 28 per cent and value up eight per cent versus the previous month. While Mexico is still the largest destination for US beef, exports were down 24 per cent in volume and 32 per cent in value compared to January 2009. Mexico’s economy is showing signs of improvement and the peso has reclaimed some of the value it shed last year, but its purchasing power is still well below 2008 levels, when US beef exports to Mexico set an all-time record.

The only other major market showing a decline from last year was Vietnam, where beef/beef variety meat exports fell 22 per cent in volume and 29 per cent in value from January 2009. However, weekly USDA/FAS export data for February show higher volumes destined for Vietnam.