November 16, 2010

 

US red meat exports continue positive trend in September

 

 

The global appetite for US beef and pork continued to grow in September, with American red meat exports maintaining solid momentum through the first nine months of 2010, according to the U.S. Meat Export Federation (USMEF).

 

Beef exports continued their torrid pace in September with a 30.2% jump in value over year-ago levels while volume climbed 16.6%.  For the month, the US exported 86,182 metric tonnes of beef valued at US$339.3 million. For the year, beef exports are up 16% in volume and 27% in value to 766,791 tonnes valued at US$2.9 billion.

 

The pork export story also is positive.  For September, the value of pork exports climbed 10% over 2009 totals to US$382.6 million even though the volume of exports slipped 3.6% to 148,416 tonnes.  Over the first nine months of the year, export volume is up 2% to 1.3 million tonnes valued at $3.5 billion - a 9% hike in value over 2009.

 

"We are finding a very positive and receptive audience for US red meat in the international market," said Philip Seng, USMEF president and CEO. "The challenge is to sustain this aggressive growth pace and continue to diversify our markets.

 

"To that end, USMEF has been working closely with the exporting community to identify new opportunities in the global marketplace - whether it be new niches within existing markets or entirely new regions - to ensure that exports continue to grow and producers continue to see a healthy return," Seng added.

 

The value of beef exports in September equated to US$151 per head of steer and heifer slaughtered, and accounted for 11% of total US production.  This compares to US$118.17 per head in September of 2009 when exports were 9.5% of total production.  For the first nine months of 2010, the value of exports per head was US$145.07 per head, which is US$8.60 more than values in 2003, prior to the discovery of BSE in the US.

 

Pork exports accounted for 22% of production and valued at US$41.33 per head in September, compared to 21% and US$35.30 last year.  Year-to-date, pork exports account for 23.7% of production and valued at US$43.62 per head, which is ahead of the US$42.30 per head total set in the record export year of 2008.

 

Virtually every major US beef export market is showing double-digit growth this year, and September continued that trend.  Only Mexico, which continues to struggle with economic woes and a weak peso, is behind 2009 levels.

 

For the year, the top five beef export markets in terms of value remain Mexico, Canada, Japan, the ASEAN region, and South Korea.  During September, the top five markets were Canada, Mexico, Japan, South Korea, and the Middle East - the latter led by Egypt.

 

Beef exports to Canada in September jumped 8.4% in value to US$65.6 million, slightly surpassing exports to Mexico that were valued at US$63.4 million, a 14.2% decline from last year.  Japan was third with beef exports valued at US$58.9 million, a 52% spike.

 

The trend in South Korea is even more promising with September exports up a startling 250% to US$38.4 million while the Middle East showed a 93% hike for the month, registering at US$22.5 million.

 

While exports to the ASEAN region are down 16.6% in value from year-ago levels, they are up sharply from August, showing positive momentum. September exports to Russia were up 91.5% in value over 2009 levels.  Muscle cut exports to Russia for the year are up 652% to 21,102 tonnes, already setting an annual record and essentially filling the 21,700 tonne tariff rate quota.  

 

Exports to Taiwan also set an annual value record of US$149.5 million, already shattering last year's mark of US$141.1 million. For the year, exports to Taiwan are up 42% in volume (27,625 tonnes) and 52% in value.

 

Through September, the US has also increased its net exporter status, with net export values of US$577.6 million for the first nine months of the year, up from US$80 million in the same period last year.

 

The value of US pork exports continues its positive trend in September, rising 4% over August and 10% from year-ago levels to US$382.6 million.

 

The top five value markets for US pork exports in September were Japan (US$126.2 million, a 15% jump over 2009), Mexico (US$73.6 million, up 21%), Canada (US$53.1 million, up 2.6%), the Hong Kong/China region (US$44.3 million, up 32.2%) and Russia (US$28.2 million, down 19.3%).

 

Canada's pork exports to Mexico have been rising steadily since June, but have spiked in timing with Mexico's application of a 5% duty on US pork in August as part of a trucking dispute between the US and Mexico.  Canada's pork exports to Mexico reached record heights in September, exceeding 6,000 tonnes - more than triple the total from one year ago.  

 

September pork exports from the US to China totaled 20,375 tonnes, the largest volume since June 2008 when China imported unprecedented volumes of pork driven by domestic shortages, high prices, and preparation for the Olympics.  Rising hog and pork prices in China should continue to support strong demand for US pork.