US beef and pork exports gain momentum

US beef and pork muscle cut exports performed well in March, concluding the first quarter of 2010 with increasing momentum.

A sluggish global market for variety meat held down the overall totals, but muscle cut export value for both products are running ahead of their 2009 pace.

Beef muscle cuts are off to a particularly strong start in 2010, increasing 22% in volume to 156,947 tonnes for the quarter. The increase in value was even higher, up 24% to $678 million. The combined beef/beef variety meat totals are also impressive, rising 11% in volume to 225,122 tonnes and 14% in value to US$788.5 million. Total beef exports accounted for 10.6% of overall production in March compared to 9.4% in March 2009. Export value per steer and heifer slaughtered equated to US$127.40, compared to US$110.67 last year.

Pork muscle cut exports pulled ahead of their 2009 pace by 1% in volume to 356,297 tonnes and 2% in value to US$941.9 million. Combined pork/pork variety meat totals are slightly behind last year in both volume at 468,793 tonnes and valued at US$1.11 billion.

On a positive note, the value of total pork exports in March edged up 1% compared to March 2009, and it was 18% ahead of the value of pork exports in March 2008, a record-setting year for US pork exports.

Pork exports accounted for 22.5% of total production compared to 25% in March 2009, but muscle cut exports accounted for 19% of production, the same as one year ago. Per-head pork export value equated to US$39.80 – which is down about US$1 from March 2009.

Meanwhile, the results for both beef and pork exports were achieved despite significant declines in each of their leading value markets. Beef exports to Mexico continue to struggle due to weakness in Mexico's economy. Though beef muscle cut exports managed to pull within 7% in volume and 10% in value of their 2009 pace, variety meat exports to Mexico are still down dramatically.

Pork exports to Japan – which exceeded US$1.5 billion in each of the last two calendar years – have slowed due to unusually high inventories of domestic pork. Muscle cut exports to Japan are within 13% in volume and 11% in value of last year's pace. But while variety meat makes up only a small portion of the US pork shipped to Japan, those exports are down 62% in volume and 46% in value.