Beef Exports Surging In Major Markets
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August was a solid month for U.S. beef exports, which easily outpaced results for August 2009 and helped post an increase for year-to-date totals, as well.
Beef exports for the month increased 24 percent in volume and 43 percent in value compared to August 2009, totaling more than 204 million pounds valued at $373.7 million. The cumulative January-August totals were up 16 percent in volume to 1.5 billion pounds and 27 percent in value to $2.57 billion. This value total is 9 percent higher than the corresponding pre-BSE value total from January-August 2003.
Korea remains the largest growth market, with exports of 162.3 million pounds valued at $345 million -- an increase of 131 percent and 175 percent, respectively.
On a per-head basis, beef exports equated to a value of $159.60 per steer and heifer slaughtered in August -- up from about $120 in August 2009. Export value for January-August equated to $144.32 per head, compared to $115.25 for the same period a year earlier. Exports made up 11.4 percent of production, up from 9.7 percent last year.
All major beef export markets showed strong growth through the first eight months of the year, except for Vietnam (which is down slightly in volume but still up 12 percent in value) and Mexico, which is down 21 percent in volume and 18 percent in value. August results for Mexico were somewhat encouraging, however, as volume (46.2 million pounds) was down slightly from last year but value (just over $70 million) was 6 percent higher.
"Mexico has remained a challenging market for beef, due to the sluggish economy and a peso that has been slow to strengthen," said Philip Seng, president and CEO of the U.S. Meat Export Federation, a contractor to the beef checkoff. "But recent results there have been more promising, so we're hopeful that our No. 1 market is getting back on track and that Mexico is beginning to share in the strong momentum U.S. beef is gaining worldwide."
Canada remains the second-largest market for U.S. beef. Export volume (216.1 million pounds) to Canada is relatively flat this year, but value is up 8 percent to $461.1 million. August was a strong month for Canada, with exports rising nearly 10 percent in volume and 25 percent in value over August 2009.
Japan is closing the gap on Canada as beef exports reached about 173.9 million pounds valued at $404.3 million. Export growth to Japan has been strong and steady throughout the year, holding at 26 percent for both volume and value. August growth was slightly better, however, exceeding 30 percent over August 2009.
Other beef export highlights for January-August include:
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Exports to Egypt increased 29 percent in volume to 153.9 million pounds and 65 percent in value to $97.1 million. Strong growth in the United Arab Emirates and Saudi Arabia helped push exports to the Middle East region to nearly 182.7 million pounds valued at $150.7 million -- increases of 31 percent and 59 percent, respectively. Muscle-cut exports to the region reached a record high in August, totaling 10.5 million pounds with a value of $15.9 million.
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Despite relatively slow growth in Vietnam, exports to the ASEAN region increased by 20 percent in volume to 105 million and 26 percent in value to $153.8 million, led by exceptional results in the Philippines and Indonesia.
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Taiwan, which has set new value records for purchases of U.S. beef in each of the last four years, appears well on its way to another record in 2010. January - August 2010 exports to Taiwan increased 42 percent in volume to 53.8 million pounds and 54 percent in value to $131.1 million, rapidly approaching last year's calendar year-ending total of $141.1 million.
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Exports to Russia have already set a new record for value at $104.5 million, surpassing the previous high of $95.3 million set in 2008. Compared to last year, exports to Russia are up 139 percent in volume to about 81.8 million pounds and 476 percent in value.
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Despite a slowdown in August, cumulative exports to Hong Kong were still up 50 percent in volume to about 45 million pounds and 68 percent in value to $76.3 million through the first eight months of the year.
For information about checkoff-funded foreign marketing programs, visit Foreign Marketing.
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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