January 19, 2007

 

Meat exports improve in 2006

 

 

Increase in red meat exports in 2006 helped Tyson Foods offset lower margins at home.

 

Nationwide, US pork exports in 2006 totaled US$2.6 billion, up 8 percent over 2005, according to the United States Meat Export Federation (USMEF).

 

Tyson Foods reported a US$19.8 million jump on-year in its international pork sales. The company ranks second in pork sales behind Smithfield, Va.-based Smithfield Foods.

 

Mexico continues to be the top destination for US pork in terms of volume with 324,630 tonnes, while Japan holds the top spot in terms of value at US$945 million.

 

Tyson Foods also reported Mexico and Japan as its number one and two customers, respectively, for pork in 2006.

 

Tyson sold US$195.7 million of pork to Mexico last year, compared to US$163.9 million a year earlier. However, the company's pork sales to Japan actually dropped from the previous year from US$203.6 million to US$185.1 million.

 

The USMEF reports the biggest growth areas for pork exports include Russia, where sales grew 129 percent last year to total US$159.8 million. Hong Kong bought US$35.5 million in US pork in 2006, twice the amount purchased in 2005.

 

While US beef exports climbed 53 percent in value to US$1.86 billion in the last year over year period, the Japanese market, despite its re-opening had a limited effect on the overall growth numbers for beef.

 

It was Mexico and the Middle East that ramped up beef purchases last year to more than US$1 billion. Mexico's export value jumped US$650 million in 2005, a 35 percent increase. Meat sales to the Middle East in 2006 increased 74 percent to US$104.2 million.

 

Total beef exports to the Middle East have more than doubled since 2003.

 

Total international beef sales for Tyson rose from US$1.3 billion to US$1.6 billion from fiscal 2005 to 2006.

The company reported sales gains in the Middle East, with Egypt its top international customer for beef livers.

 

The USMEF is hopeful beef exports would continue to increase in markets that have recently reopened such as Japan, Hong Kong, the Philippines and Singapore.

 

Though open, South Korea remains problematic for US beef exporters. Tyson Foods has not shipped any beef to South Korea since the market opened in September.