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Trade Barriers and Slow Demand Limit February Exports

09 April 2013

US - February continued the trend set at the end of 2012 for U.S. beef and pork exports with higher values on lower volumes for beef and a continued slight decline for pork, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Beef exports managed a 5 per cent increase in value ($430 million) over February 2012 despite a slight decline in volume (86,367 mt), writes the Meat Export Federation.

February pork exports slipped 5 per cent in volume (178,510 mt) and 6 per cent in value ($494.6 million) compared to a year ago.

“The good news is that the long-awaited change in beef access to Japan came through in February,” said USMEF President and CEO Philip Seng. “Conversely, trade barriers and other obstacles seem to be emerging at a rather alarming rate in 2013. Sluggish economic conditions in certain markets also create a challenge, but this is why we have made such a strong effort to diversify our destinations for red meat exports over the years. As some of our key markets struggle, growth in other regions has helped provide balance.”

Canada, Hong Kong lead beef export value growth

Through the first two months of the year, beef exports totaled 172,975 mt valued at $873.8 million – 2 per cent lower in volume but 7 per cent higher in value than last year’s pace. Beef export value in February averaged $239 per head of fed slaughter – up nearly $31 from a year ago.

This drove the January-February export value to $220.39 per head, compared to $202.89 in 2012. The per cent age of U.S. beef production exported in February was 10 per cent for muscle cuts and 13.4 per cent for combined muscle cuts and variety meat. This compares to 9 per cent and 12.6 per cent , respectively, from a year ago.

Beef exports to Canada are off to an outstanding start in 2013, totaling 31,464 mt (+31 per cent ) valued at $200.2 million (+46 per cent ) through February. Other markets performing well above year-ago levels include:

  • Hong Kong, 15,821 mt (+144 per cent ) valued at $85.5 million (+126 per cent ).
  • Taiwan, 5,708 mt (+16 per cent ) valued at $42.6 million (+39 per cent ).
  • Philippines, 2,463 mt (+19 per cent ) valued at $11.3 million (+45 per cent ).
  • Dominican Republic, 617 mt (+41 per cent ) valued at $5.6 million (+70 per cent ).

Because access for U.S. beef exports to Japan was expanded on Feb. 1 to include beef from cattle less than 30 months of age (up from 21 months), expectations for the month were very high. Exports to Japan did record small gains in February and moved 3 per cent higher in volume (19,918 mt) and 12 per cent higher in value ($137.9 million) for the year.

Based on weekly export data the improvement in market access didn’t trigger an increase in export activity late February, so the impact will be more pronounced in March.

The ractopamine impasse with Russia has had a dramatic impact on this year’s export results. Coming off a record year in 2012, beef exports to Russia through February totaled only 1,693 mt (-82 per cent ) valued at $2.1 million (-94 per cent ). The downturn in beef exports to Russia alone more than accounted for the overall volume decline in February.

Exports to former No. 1 market Mexico were also sharply lower at 29,933 mt (-21 per cent ) valued at $130.6 million (-23 per cent ).

Lower results in Mexico, Japan slow pork exports

Pork exports through February totaled 365,191 mt valued at just under $1.02 billion – down 8 per cent in volume and 7 per cent in value from a year ago. Pork export value in February averaged $57.56 per head, down slightly from last year’s $58.17. (January-February export value averaged $54.89, down 6 per cent from a year ago.)

Pork exports in February equated to 22 per cent of muscle cut production and 27.9 per cent when adding variety meats. This compares to 24 per cent and 27.7 per cent , respectively, in February 2012.

Pork exports to leading volume market Mexico slowed from the record pace established in 2012, declining 13 per cent in volume (98,237 mt) and 12 per cent in value ($183.5 million) through February. Value leader Japan also saw lower results, falling 11 per cent in volume (71,248 mt) and 6 per cent in value ($320.1 million).

Exports to the China/Hong Kong region were relatively steady, falling 2 per cent in volume (76,402 mt) but increasing 1 per cent in value ($160.4 million). Exports to Canada were slightly ahead of last year’s pace in both volume (37,339 mt, +2 per cent ) and value ($130.6 million, +1 per cent ).

Markets performing well above year-ago levels through February included:

  • Philippines, 7,851 mt (+42 per cent ) valued at $18.3 million (32 per cent ).
  • Colombia, 3,598 mt (+62 per cent ) valued at $9.2 million (+51 per cent ).
  • Honduras, 3,559 mt (+17 per cent ) valued at $8.7 million (+24 per cent ).
  • Dominican Republic, 2,448 mt (+28 per cent ) valued at $5.7 million (+44 per cent ).
  • New Zealand, 1,780 mt (+76 per cent ) valued at $5.1 million (+57 per cent ).

The impact of Russia’s ractopamine restrictions was not as dramatic for pork, though exports through February were down 15 per cent in volume (7,037 mt) and 16 per cent in value ($21.1 million). Demand in South Korea continues to be hampered by sluggish consumer spending and a surge in domestic meat production, as exports through February fell 30 per cent in volume (25,540 mt) and 32 per cent in value ($70.7 million) compared to a year ago.

Lamb export value up, despite lower volume

U.S. lamb exports continued to trend lower in volume through February (1,885 mt, -20 per cent ) but were 15 per cent higher in value ($4.4 million) compared to last year. Exports to leading market Mexico gained 37 per cent in value ($2.6 million) despite a 3 per cent decline in volume (1,558 mt).

Complete export results for U.S. beef, pork and lamb are available online.

TheCattleSite News Desk



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