October Beef Exports Show Promising Signs Of A Rebound
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Beef export volume climbs 12 percent over September, value up 5 percent
While the sluggish global economy and depressed currencies of many major trading partners have kept beef exports down, October showed promising signs of a rebound. Beef and beef variety meat exports totaled 182.2 million pounds valued at $274.7 million, the largest monthly volume and third-highest monthly value (slightly behind May and June) of the year.
While still below year-ago levels, October beef and beef variety meat exports increased 12 percent in volume and 5 percent in value over the prior month, and exceeded the 2009 monthly average by 11 percent in volume and 7.5 percent in value. January-October exports of 1.64 billion pounds valued at $2.56 billion still lag last year’s pace by 12 percent and 18 percent, respectively.
Brazil, the world’s largest beef exporter, has seen its exports slip even more than the U.S. – 15 percent in volume (no value figures available). The only major exporter to see significant growth this year is Argentina, and that is due to the government’s relaxation of 2008 export restrictions and a sharp increase in cattle slaughter that led to dramatically lower prices.
“This has been a tough year globally for the beef industry due to the rough economic conditions,” said Philip Seng, president and CEO of the U.S. Meat Export Federation (USMEF), a contractor of the Beef Checkoff Program. “This year, we realigned our resources to put emphasis on markets and niches , such as the convenience store niche in Japan, within markets that showed potential for near-term growth and that has helped limit the overall decline even though for much of this year the strong U.S. dollar made our products relatively more expensive.”
Japan continued to outpace 2008 totals by a significant margin. October exports were up 24 percent in volume and 26 percent in value over October 2008. January-October exports to Japan totaled 173.8 million pounds, valued at $404.9 million – an increase of 22 percent in both volume and value.
“We are extremely pleased with the growth achieved in Japan, as demand for U.S. beef continues to climb even in difficult economic times,” Seng said. “It’s important to remember that the U.S. industry is limited to exporting beef from cattle 20 months of age or younger, and this age restriction becomes particularly confining in the final months of the year as cattle supply dwindles. There is still tremendous room for growth in Japan if we can gain broader access to the market.”
South Korea, where the checkoff has funded extensive marketing efforts in recent months at both retail and foodservice, saw imports of U.S. beef reach their highest monthly volume since February - 12.6 million pounds valued at $20.9 million. While down from October of last year, these results are more than double the September 2009 volume and are 90 percent above the September value.
This month, the checkoff helped launch a major U.S. beef imaging campaign in Korea, with an aim of further capitalizing on growing consumer demand and a strengthening Korean currency.
Record U.S. beef exports to the Middle East represent one of the most positive drivers in October, totaling 23.4 million pounds valued at $14.9 million. This region continues to show a growing appetite for U.S. beef muscle cuts as exports through the first 10 months of the year more than doubled in volume compared to 2008. Egypt, which has long been a stellar market for beef variety meat, this year has imported nearly 30 times its 2008 volume of U.S. beef muscle cuts.
Other October highlights for U.S. beef included record exports to Greater China plus Vietnam, as well as the highest 2009 monthly volume of exports to both Russia and Taiwan. Demand in Taiwan appears to be holding up extremely well despite continued negative media coverage surrounding expanded market access for U.S. beef.
Beef exports to Mexico, the No. 1 destination for U.S. beef, remain down from a year ago. October muscle cut exports to Mexico were just 4 percent below 2008 levels, although variety meat exports were down 39 percent in volume and 55 percent in value. For the year, total beef exports to Mexico trail last year by 27 percent in volume and 36 percent in value.
The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which administers the national checkoff program, subject to USDA approval.
Funded by the Beef Checkoff.
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