June 14, 2012

US beef exports decline due to lower shipments

After a decrease in on-year shipments since the start of 2012, US beef exports in April have dropped by 7% on-year, to 94,263 tonnes, but still remains 28% above the five-year average.

The decline in US beef exports in April was mainly due to lower beef production, with falls in shipments particularly to Japan (down 15%, to 14,088 tonnes), Canada (down 16%, to 15,160 tonnes), Mexico (down 4%, 15,604 tonnes), and Taiwan (down 92%, to 386 tonnes). Although not enough to offset the fall in shipments to major markets, US beef exports to several smaller markets increased in April, most significantly to Russia (9,555 tonnes) and Chile (896 tonnes), surging 79% and 212%, respectively.

During January to April 2012, the US exported 11% less beef compared with the record registered during the four month period in 2011, totalling 347,554 tonnes cwt. However, shipments in 2012 remained 30% above the five year average.

In contrast to the decline in beef exports, and also in response to the tight domestic supply, US beef imports in April increased 13% on-year, to 96,618 tonnes.

Compared with April 2011, US imported more beef from almost all major suppliers, including Australia (up 46%, to 31,304 tonnes), New Zealand (up 1%, to 22,665 tonnes) and Mexico (up 28%, to 7,350 tonnes) and Uruguay (up 58%, to 2,985 tonnes), with the exception of Canada (down 3%, to 24,142 tonnes).

With US beef production in April down 3% on-year, to 902,921 tonnes, higher beef imports and lower beef exports so far this year have assisted in maintaining supplies in the US domestic market.