US beef exports drop 12% in May on China trade issues - USMEF
Tariffs, plant bans drive lowest monthly total in 5 yearsExports of US beef trended lower in May, due primarily to steep declines in shipments to China, according to data released by USDA and compiled by the US Meat Export Federation (USMEF).
In April and the first half of May, China’s total tariff rate for US beef was 147%. Even following a May 14 joint announcement temporarily easing tariffs for 90 days, China’s rates still stand at 32% for US beef. In addition, most US beef production is ineligible due to China’s failure – since February – to renew expiring beef plant and cold storage facility registrations.
“The situation with China obviously had a severe impact on May exports, underscoring the importance of diversification and further development of alternative markets,” said USMEF president and CEO Dan Halstrom. “The need for progress in the US-China trade negotiations is extremely urgent because tariffs could soar again on August 12. This deadline is already impacting exporters’ decisions about whether to continue producing for the Chinese market. On the bright side, amid all this uncertainty, demand for US red meat remains robust in many key regions.”
Beef exports totalled 97,266 mt in May, down 12% and the lowest in nearly five years. Export value was $798.7 million, down 11.5% and the lowest in 18 months. January-May beef exports were down 5% from last year’s pace at 508,293 mt, while value declined 3% to $4.15 billion.