June 12, 2009

US beef exports for the first four months of 2009 increased two percent to 277,019 tonnes despite the ongoing world economic slowdown.

But while export volume had increased, value had declined slightly to US$937 million. For April, US beef and beef variety meat exports also fell 1.4 percent in volume and down six percent in value from last year.

US Meat Export Federation (USMEF) President and CEO Philip Seng said the trade environment for beef was not directly impacted by the AH1N1 flu as much as it was for pork, but the beef trade is also likely to suffer when consumer activity takes a major hit.

Seng said he believes US beef will perform well this year, but an economic rebound and expanded access in key markets like Mexico, South Korea and Taiwan are needed.

The US beef industry is currently working with trade officials to gain access into Taiwan for products such as bone-in cuts and variety meat. The industry is also seeking relief from the 21-month age limit for cattle from which beef is eligible for export to Japan.

US beef exports to top markets Mexico and Canada continue to struggle. Shipments to Mexico had declined more than 20 percent in volume and trade compared to the first four months of 2008, due to unfavourable exchange rates and the economic downturn, which steered consumers to lower-priced proteins.

Exports to Canada have dropped about 10 percent in volume and 16 percent in value compared to 2008. But a continued contraction in the Canadian cattle herd could provide increased export opportunities once economic conditions recover.

US beef exports to Japan in April grew 10 percent from April 2008. For the first four months of 2009, beef shipments to Japan increased about 25 percent in both volume and value compared to the same period last year, totalling 19,914 tonnes valued at US$106 million.