September 15, 2009

US beef exports during the first seven months of 2009 are lagging behind last year's pace amid a difficult global economic climate, according to data from the US Meat Export Federation (USMEF).

Beef exports reached 512,053 tonnes valued at US$1.94 billion, down six percent on-year in volume and down 10 percent on-year in value.

This is mainly due to a sluggish global market for beef variety meat. Beef muscle cut exports decreased slightly to 338,217 tonnes while value dropped two percent to US$1.445 billion.

Slow demand in Mexico and Canada, and a sharp decline in beef variety meat exports have kept US beef shipments below last year's pace. During the January-July period, exports to Canada fell 25 percent on-year to 180,350 tonnes while value declined 31 percent on-year to US$570.7 million. Beef variety meat exports to Mexico dropped 35 percent in volume and 47 percent in value.

Exports to Canada registered 84,000 tonnes valued at US$366.4 million, with volume down 12 percent on-year and value down 18 percent on-year. This is partly due to a 30-percent drop from January to August in live cattle exports from Canada to the US.

Meanwhile, good results in the Asian market partially offset the losses in the Americas market.

US beef exports to Japan during the seven-month period increased 18 percent on-year, while shipments to Hong Kong reached 2,756 tonnes valued at US$9.6 million, up 111 percent on-year in volume and up 60 percent on-year in value.

US beef exports to Taiwan in the period are still slightly down from last year, but are showing signs of recovery.

Shipments to Vietnam increased 38 percent in volume and 59 percent in value year-on-year. Exports to South Korea totalled 28,440 tonnes valued at US$111.1 million, but the pace has also slowed with the July volume being the smallest since the market reopened in mid-2008.

In terms of total US production, beef plus beef variety meat exports accounted 9.8 percent in January-July 2009, compared to 10 percent during the same period in 2008.