December 15, 2009

US October beef exports at 12-month high; pork biggest since March

Beef and pork exports, including variety meats, in October rebounded, with sales in the beef category reaching a 12-month high and pork having its biggest sales month internationally since March.

Both categories were still below their respective year-ago volumes and values for the month and for the year. The progress made in recent months, however, is considered supportive for prices and the outlook for sales the balance of this year and into 2010.

Total beef sales internationally for October were at 82,627 tonnes, highest in volume since October 2008. The sales value at $274.7 million was third highest of this year behind May and June, according to US Meat Export Federation data on its Web site.

In a release Friday, USMEF's CEO Phil Seng said this has been a "tough year globally for the beef industry due to the rough economic conditions." Record sales of US beef into the Middle East have contributed to the rebound, and sales to that region in October put it as the third largest market for the month behind only Mexico and Canada. Most of the sales into the Middle East went to Egypt.

For year-to-date beef sales, the leading gainers are Japan at up 22%, the Middle East at plus 7%, and Hong Kong/China at more than double the 2008 figure. In terms of actual tonnage growth, Japan is up 14,144 tonnes, Hong Kong/China has an increase of nearly 10,600 tonnes, and the Middle East is up nearly 5,600 tonnes.

October total pork sales internationally were the second largest of the year. Low wholesale pork prices in late summer through early autumn contributed to the volume growth, said analysts. The value of total pork exports in October was at US$372.6 million, down 23.6% from the same period a year ago, compared with a drop of 14.7% in volume.

Mexico was the leading destination for US pork in October and the year-to-date. Japan was second in volume for the month and the year but easily holds the top spot for the month and year in terms of sales value. Through the first 10 months, Japan accounts for 36% of export sales value for US pork and pork variety meats.

Total pork sales to Hong Kong/China in October were just under 26,000 tonnes, off 5.3% from a year ago, and the year-to-date tonnage is down 43%. Sales to Russia in October were down 58% from last year, and year-to-date volume there was off 41%. Gains in other markets such as the Asean countries, Canada and Taiwan helped offset the declines to Hong Kong/China and Russia.