July 16, 2012
US beef export for May shows mixed results
Although US beef exports has experienced its strongest month in May, volume (209 million pounds) has dropped 13% compared to May 2011 and stands 10% lower (one billion pounds) through the first five months of 2012.
Beef export value in May (US$471.1 million) was 4% higher than a year ago, which kept year-to-date export value (US$2.19 billion) 5% ahead of last year’s record pace. These results are based on statistics released by the USDA and compiled by the US Meat Export Federation (USMEF), contractor to the Beef Checkoff Programme.
With the April 24 announcement of the fourth BSE case in the US, May was the first month in which any BSE-related decline could be detected in export statistics. May beef exports did not reveal a major impact, though global totals were likely affected to some degree by the market closure in Saudi Arabia and negative media coverage in some Asian markets.
While year-to-date exports to Korea were down 24% in volume (128 million pounds) and 17% in value (US$273.1 million), May results were higher (+5% in volume, +13% in value) in both categories. The main factors impacting US beef exports to Korea in 2012 are an oversupply of domestic beef and a slumping Korean currency; Australia’s beef exports to Korea have also declined by about one-third compared to last year.
In several major markets, beef export volume has slowed moderately compared to the first five months of last year but increases in export value were still achieved.
In Canada, the only billion-dollar market for US beef in 2011, export volume was down 7% to 141 million pounds but value was up 10% to US$404.5 million.
In the Middle East, export volume was down 7% to 132 million pounds while value was up 10% to US$138.1 million. Although Saudi Arabia was the only country in this region to close to US beef due to the BSE case, confusion regarding possible restrictions (which never materialised) in some other markets may have affected May results. Despite these issues, however, May export volume (28 million pounds) to the region was the largest since January.
In the ASEAN region, export volume (57 million pounds) was down 12% while value ($112.3 million) was 13% higher. This trend was made possible by a surge in export value to the two largest markets, Vietnam (+21% to $82.6 million) and the Philippines (+31% to $18.9 million).
In Hong Kong, where US exports are still limited to boneless muscle cuts from cattle under 30 months of age, export volume (43 million pounds) was down 15% while export value (US$112.9 million) was 12% higher. May export volume to Hong Kong (10 million pounds) was the largest monthly total of the year.
Two regions in which US beef exports are surging in both volume and value are Russia and Central and South America. Though export activity to Russia has slowed in recent weeks, January-May exports were 24% ahead of last year’s record pace in volume (71 million pounds) and 83% higher in value (US$138.8 million). Bolstered by terrific growth in Chile, exports to Central and South America were up 42% in volume (32 million pounds) and 83% in value (US$53.8 million).
US beef exports to Taiwan have slowed dramatically. Exports in May were down about 90% from last year, while year-to-date exports were 54% lower in volume (13 million pounds) and 47% lower in value (US$39 million). While the Taiwanese government is expected to take action soon on a maximum residue level (MRL) for ractopamine in imported beef, US beef sales likely face a lengthy recovery due to the political controversy surrounding this issue.
