March 18, 2013

US beef shipments in January increased 5% on-year, to 60,524 tonnes swt, despite expectation of reduced exports in 2013.

Assisting the growth was a 7% increase in US beef production in January, amid slower than expected demand from the US domestic market. Increased shipments were registered for trade to Japan (up 4%), Canada (up 45%), Korea (up 8%) and Hong Kong (up 151%). Meanwhile, exports to Mexico remained subdued (down 25%) and Russia's ban on US beef put a pause on shipments to the market (down 100%).

China and Hong Kong became one of the major highlights for US beef in January, as beef prices and demand for imports in these markets continued to accelerate. Apart from the US, beef exports from Australia, New Zealand and South America to China and Hong Kong have also grown rapidly since late 2012.

Export prices of US beef in January increased 8% on-year on average, to around US$6.24/kilogramme free on board (FOB) - as the continuing high US cattle prices underpin prices. Nonetheless, the anticipated increase in US beef prices in coming months is expected to slow the growth in US beef shipments.

In the meantime, US beef imports in January also increased 5% on the same period last year, to 64,314 tonnes swt. Imports from Australia were steady on year ago levels, although Australia remained the largest imported beef supplier to the US for the month. US imports of New Zealand beef experienced the biggest growth during this period, up 40% on January 2012, with volumes expected to continue accelerating through the coming months. The latest USDA estimates US beef imports to increase 15% in 2013.