TheBeefSite.com - news, features, articles and disease information for the beef industry

News

CME: Beef Export Value in May Higher Than a Year Ago

10 July 2018

US - According to Steiner Consulting Group, DLR Division, Inc., USDA released the official May trade statistics on Friday.

Below is a brief recap of the highlights for beef, pork and chicken exports for the month.

Total US shipments of fresh/frozen/cooked beef and veal in May were 89,823 MT, 19.6 per cent higher than the previous year. The increase in beef exports was due to both more beef available in the US market but also continued strong demand from a number of markets, particularly in Asia.

The best evidence of this strong demand is the fact that the value of exports in May was up 27.6 per cent compared to a year ago. International buyers bought more US beef and paid higher prices than they did last year.

Exports to South Korea in May were 19,736 MT, a 50 per cent increase compared to a year ago. Robust economic growth has bolstered consumer demand in that market. Also keep in mind that tariffs on US beef in Korea have been lowered thanks to the Korea-US Free Trade Agreement.

Japan remains the top market for US beef exports, with May exports at 25,735 MT, 21 per cent higher than a year ago. Exports to Mexico for the month were 11,632 MT, 5 per cent higher than last year while exports to Canada at 9,875 MT were 26 per cent higher than a year ago. Weekly export data indicates that we should see double digit increases in US beef exports in June as well.

Pork exports presented a mixed picture in May. While shipments to a number of markets were higher, those increases were offset by a sharp reduction in exports to China. Total US exports of fresh/frozen/cooked pork in May were 174,079 MT, almost exactly the same as last year.

Similar to beef, pork exports to South Korea have exploded and, at 21,102 MT, were 40 per cent higher than a year ago. The value of US pork exports to South Korea was $59.6 million, 41 per cent higher than a year ago.

Pork exports to Mexico in May were 59,308 MT, 5.6 per cent higher than a year ago. Mexico is the largest market for US pork and hams make up much of the pork currently going into that market. The gains in exports to these markets were offset by the sharp decline in exports to China.

Shipments to the Chinese market in May were 9,187 MT, 46 per cent lower than a year ago. Exports to Hong Kong at 1,378 MT were also down 65 per cent from last year. Hard as it is to imagine, we think exports to China in June are going to show even more dramatic declines as US pork in China faces steep tariffs.

Variety meat exports were lower in May. Total shipments of pork variety meats for the month were 37,762 MT, 11.6 per cent lower than a year ago. Shipments to China were 9,071 MT, 37 per cent lower than a year ago. The export value of pork variety meats in May was down 16 per cent compared to a year ago.

US exports of fresh/frozen chicken in May were lower. Total exports for the month were 240,791 MT, 4.2 per cent lower than a year ago. Mexico is the top market for US chicken and shipments in May were 51,858 MT, 8 per cent lower than a year ago. Shipments were briefly disrupted due to an outbreak of Newcastle disease in a backyard flock in California.

We think exports are back on track at this time. Exports to markets in the Middle East and Central Asia have also declined sharply in recent months. On the other hand, we continue to see very robust growth in exports to the Caribbean and Central America.


Daily Livestock Report - Copyright © 2008 CME. All rights reserved.


TheCattleSite News Desk

Our Sponsors

Partners


Seasonal Picks

Animal Welfare in EPS - 5m Books