January 15, 2013

 

 

During January-November 2012, US pork exports continued to exceed the record-setting pace of 2011, while the value of beef exports remained slightly above 2011's record levels despite continued lower volumes.

 

This is according to USDA statistic compiled by the US Meat Export Federation (USMEF).

 

With only one month yet to be recorded for 2012, pork exports continue to top 2011 levels by 2% in volume (2,075,974 tonnes) and 5% in value (US$5.8 billion), while totals for November declined 7.7% in volume and 5.4% in value versus last year. It is important to note, however, that November 2011 ranks as the second-best month in history (behind October 2012) for US pork exports.

 

Mexico continues to perform as the US' top pork volume destination, with November's totals up 7.2% in volume and 4.6% in value, pushing the 11-month totals to 550,408 tonnes (up 15%) valued at just over US$1 billion (up 11%). Although exports to Japan are trailing 2011 volume, they could still eclipse the US$2 billion mark this year, with value up 3% through November and volume down 6%.

 

Other top pork markets in November were Canada (up 15.3% in volume and 17.1% in value), South Korea (up 26.4% in volume and 8.5% in value), Russia (up 100% in volume and 78.7% in value), and Central/South America (up 21.1% in volume and 10% in value).

 

With US production declining in 2012, beef exports fell a modest 1% in value on a 13.3% drop in volume in November. For the year, volumes are down 11% (1,043,151 tonnes) but the value of those exports is US$5.05 billion - still 2% above the record-setting value pace of 2011.

 

Canada (up 18.5% in volume and 37.8% in value), Hong Kong (up 18.8% and 62.6% in volume and value, respectively), Russia (up 19% in volume and 4% in value) and Central/South America (up 42.4% in volume and 56.3% in value; including record exports to Chile, up 119%) were the top-performing beef export markets in November. Export value to South Korea increased nearly 6% on a slight decline in volume.

 

"Volume has been an issue for beef exports all year," noted USMEF President and CEO Philip Seng. "That continued in November, but an appreciated value of those products has helped the industry hold its own in a challenging year."

 

Beef exports to price-sensitive markets like Mexico are down this year, but the value of exports to premium markets like Japan (up 19% for the year) and Canada (up 13%) continue to grow even as volumes remain low. Another positive for beef exporters is the rebound of the Taiwan market, which was once a top five US beef export market but was hindered for most of this year by ractopamine-related barriers that have since been resolved.

 

In November, the value of beef sales to Taiwan jumped 13.7% over last year on slightly reduced volumes. For the year, exports to Taiwan are down 48% in volume and 40% in value, but recent numbers are encouraging for 2013. Pork exports to Taiwan, however, continue to be affected by Taiwanese restrictions on products with ractopamine residues.

 

He noted that higher domestic meat production in certain markets (such as Korea, Japan and China) also have affected exports this year. Market access issues - such as Indonesia's tighter import quotas aimed at boosting domestic production and Saudi Arabia's closure due to BSE - have also impacted exports.

 

"While volumes are lower, the quality and reputation of US red meat products have helped support higher values, and that is not a statement that most of our competitors in the international marketplace can make," he said.

 

Year-to-date, US pork exports account for 27% of total production (23.5% for just muscle cuts) and the per-head export value is US$56.12 - up 3% from last year. Beef exports account for 12.6% of total production (9.8% for just muscle cuts) with a per-head value of US$214.64, up 5% from last year.