February 17, 2011

 

US beef export value the best ever in 2010

 

 

US beef export value in 2010 has been the best year ever, with a final total of US$4.08 billion, according to December statistics released and compiled by the USDA and US Meat Export Federation (USMEF), respectively.

 

A final total of US$4.08 billion breaks the pre-BSE high from 2003 of US$3.86 billion by more than 5% and exceeds the 2009 total by nearly US$1 billion. Total volume was 2.35 billion pounds, an increase of 19% over 2009.

 

The global economic downturn of 2009 was particularly hard on beef exports - not only for the US, but for all exporting countries. But despite an overall drop in global demand, US beef maintained or increased its market share in most key markets and was well-positioned for a rebound in 2010.

 

"We knew the groundwork was in place for an excellent recovery in 2010," says USMEF President and CEO Philip Seng. "But even the most optimistic forecasts underestimated the degree to which our beef exports would bounce back. Increasing beef export value by almost one-third, and nearly US$1 billion, is a critical achievement for the US beef industry and a substantial boost for US producers."

 

Export value equated to US$153.09 per head of fed slaughter, which is up 22% from 2009 and is 12% higher than in 2003. Nearly 12% of total beef production was exported, compared to less than 10% in 2009.

 

Mexico was the only major destination for US beef to show a decline in 2010, and even that market is showing substantial improvement. For the year, beef exports to Mexico were down 15% in volume (545.9 million pounds) and 10% in value (US$819.1 million). For the third consecutive month, December exports to Mexico exceeded their 2009 value - jumping by more than 15 % to US$83.6 million.

 

Other 2010 market highlights for US beef include:

 

Exports to Canada increased 7% in volume (337.7 million pounds) and 15% in value (US$733.4 million - a new record) over 2009. Canada remains the No. 2 market for US beef in both volume and value.

 

Japan is the third-largest market for US beef, but is gaining ground quickly in terms of value. In 2010, exports to Japan increased by 36% in both volume (274.6 million pounds) and value (US$639.5 million).

 

South Korea represents one of the great turnaround stories of 2010, with exports more than doubling in volume (248.6 million pounds) and climbing by 140% in value (US$517.9 million).

 

Exports to Russia also doubled in volume to almost 126.7 million pounds and nearly quadrupled in value to a record US$152.4 million. The surge in value was due to a tremendous increase in muscle cut exports to Russia, which grew by more than 500%. But variety meat exports to Russia also performed well, increasing by 26% in volume and 90% in value.

 

A similar scenario took place in the Middle East, where variety meat exports jumped by 19% in volume and 40% in value, but muscle cut exports rose by 87% and 113%, respectively. In total, exports to the region increased by 36% in volume (296.5 million pounds) and 77% in value (US$261.2 million - a new record).

 

Taiwan shattered its previous record for export value by more than 50%, reaching US$216.3 million. The market has cooled substantially in January and February, however, due to market access restrictions.

 

Despite a down year for Vietnam, the ASEAN region posted an export value record of US$232.3 million, led by strong results in Indonesia and the Philippines.

 

Exports to Hong Kong also set a value record of US$158.2 million, an increase of 87% over 2009.

 

In the first full-year of a duty-free quota in the EU, exports increased substantially. Through November, high-quality beef exported under the quota totalled 23.4 million pounds valued at just under US$100 million.

 

US beef exports also set new records in the Caribbean and Central-South America regions.