U.S. Beef Exports Continue Setting Records
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Exports of total U.S. beef exports continued on a record-setting pace in March, posting a 65 percent gain in value versus year-ago levels, according to statistics compiled by the U.S. Meat Export Federation (USMEF), a contractor of the Beef Checkoff Program.
On a per-head basis, beef exports achieved record value levels. The beef industry exported 15 percent of total production, with an export value-per-head of fed slaughter reaching $205.40.
For the first three months of 2011, year-on-year beef exports were up 32 percent in volume and 53 percent in value!
“We are seeing rebounding global demand for high-quality U.S. red meat products, particularly as consumer trust recovers in key markets like Japan and South Korea,” said Philip Seng, USMEF president and CEO. “Certainly, we still are facing obstacles in the international marketplace, such as China’s ban on U.S. beef … technical issues in Taiwan and age restrictions on beef exports to Japan, but even without the resolution of any significant access issues, we’re finding increased opportunities to expand market share for U.S. red meat products.”
Record-High Volume and Value
For the full first quarter of the calendar year, exports were up 53 percent in value and 32 percent in volume, totaling $1.2 billion and 653.7 million pounds. On a value basis, exports have exceeded 2003 levels for each of the last five months, and export volume has exceeded 2003 in three of those months, as well.
South Korea Sets The Pace
The top growth market for beef was South Korea, with first-quarter exports up 181 percent to more than 116 million pounds and value up 190 percent to $226.4 million. This put Korea narrowly behind Mexico for the top spot among U.S. beef export destinations. Total March beef exports of nearly 54 million pounds, surged above March 2003 volume (when Korea was the No. 3 export market for U.S. beef) and were three times larger than March 2010 exports. The U.S. accounted for 38 percent of Korea’s first-quarter beef imports, up from a 30.5 percent market share one year ago.
Other beef exports
- Japan – Exports to Japan surged in the first quarter, up 73 percent to 70.5 million pounds and up 85 percent in value to $176.4 million. March exports of 25.6 million pounds were up 70 percent and 91.2 percent in value ($70.2 million) from March 2010. Weekly beef export data indicates that shipments to Japan have maintained this strong pace, even following the devastating March 11 earthquake. Japan currently is the No. 4 market for U.S. beef, following Mexico, Korea and Canada.
- Mexico – March exports showed reason for continued optimism, up 24 percent to about 51.4 million pounds and up 44.4 percent in value to $87.8 million. First-quarter exports are up 10 percent in volume to 140.8 million pounds and up 30 percent in value to $239.4 million.
- Canada – U.S. beef exports to Canada were up 15 percent in volume (70 million pounds) and 35 percent in value ($187.7 million) for the quarter, and on a similar pace in March. Canadian cattle slaughter was down 10.6 percent through April of 2011 as years of herd liquidation have limited beef production.
- Middle East – Despite unrest in the region, the Middle East continues to be a booming market for U.S. beef. First quarter totals are up 35 percent in volume (70 million pounds) and 63 percent in value ($71.5 million). In March, year-over-year increases of 33.6 percent in volume and 42.6 percent in value were achieved.
- Russia – Continued growth in exports to Russia – up 9 percent in volume (391 million pounds) and 12 percent in value ($32.4 million) for the quarter. Exports should gain further momentum in the coming months to fill the U.S. tariff rate quota of 83.6 million pounds (more than double that last year).
- ASEAN – First-quarter exports to this region were down 19 percent in volume (35.6 million pounds) and 14 percent in value ($61.3 million), due to a 43 percent volume decline to Vietnam. However, exports to Indonesia doubled in volume, reaching 8.9 million pounds valued at $6.2 million, while exports to the Philippines increased 21 percent to 5.9 million pounds valued at $9.2 million, a 30-percent value hike.
- Hong Kong – Beef exports jumped 72 percent in volume (26.2 million pounds) and 107 percent in value ($59.7 million) for the quarter. In March, volumes were up 46 percent over year-ago levels while values doubled.
- Taiwan – Reflecting market access challenges, first-quarter beef exports to Taiwan were down 20 percent in volume (13.6 million pounds) and 13 percent in value ($39.2 million), but March totals showed some rebound, up 4.4 percent in volume and 9.9 percent in value. Taiwan’s weekly import data for April also indicates improvement.
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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