September 11, 2014

US meat export volumes slip in July

For the first time this year, high prices for red meat slowed down the pace for US beef and pork exports in July, according to monthly statistics released by the USDA and compiled by the US Meat Export Federation (USMEF).

The value of US beef exports in July almost mirrored last year's $621.7 million, although it slipped 15% in volume from July 2013beef .

Still, for the current calendar year, beef exports are 4% above last year's at 687,752 tonnes and remained on track for record exportsworth $3.89 million this year.

"Demand for U.S. beef in Asian markets has continued to strengthen this year, adding further value to cuts that are popular there and underutilized domestically," said USMEF president and chief executive officer Philip Seng.

"With our limited supplies, competition for these cuts among Asian buyers contributes greatly to US cattle prices. USMEF continues to work with our industry partners to educate the trade about alternative cuts and merchandising ideas, so that we can deliver value to our Asian customers even in these times of historically tight supplies."

Moreover, for the first seven months this year US beef exports represented 14% of total production and 11% for muscle cuts.  The export value per head of fed slaughter was US$298.56 in July, slightly down from June but US$25 year-over-year.

Although US pork exports in July were down 3% in volume at 173,270 tonnes, the value climbed 14% to US$573.5 million.  For January-July, exports established a record pace in both volume at 1.32 million tonnes,an increase of 7%, and value at US$4billion, which was a record of sorts. This was the first timein US history that pork export value had exceeded US$4 billion before August.

"Pork exports have overcome some severe price disadvantages this year, especially in Asian markets where we compete head-to-head with European pork," Seng explained.

"U.S. prices began to moderate in August, so these price gaps have now been narrowed or eliminated. Going forward, this should relieve some of the price pressure on U.S. exporters."