December 16, 2010

US beef exports pull ahead of seven-year record

US beef exports for October have reached a new record value at US$3.28 billion, surpassing the January-October 2003 total of US$3.26 billion, according to results compiled by the US Meat Export Federation (USMEF).

Beef exports achieved their second-highest value of the year at US$375.3 million (trailing only June's US$377.6 million), surpassing the September total by 11% and beating October 2009 by an impressive 37%.

Compared to 2009, beef export value is up by 28%. In terms of volume, beef exports reached 863,046 tonnes for the year, outpacing 2009 by 16%. This year's ratio of total US production exported is 11.4%, while the value per steer and heifer slaughtered is US$147.62. The per head value in October actually reached US$170.00 - nearly US$50.00 higher than October 2009.

"With two months of results still to come, we anticipate the possibility of setting a new export value record this year," said USMEF President and CEO, Philip Seng. "But the long climb back from the BSE setback of 2003 is not just about rebuilding our mainstay markets. We've established a presence for US beef in many new and diverse destinations across the globe in order to get back to this level. So now the key is to achieve full restoration of all markets so we can take US beef to even greater heights." 

US beef has achieved a significant increase in virtually every major destination except for Mexico this year, and even that market is improving. While exports to Mexico are down for the year, October totals were up 5% in volume (22,194 tonnes) and 10% in value (US$71.9 million) over October 2009.

Exports to Canada are up only slightly in volume this year (123,549 tonnes) but have surged by 10% in value to US$589 million. Japan is up 31% in both volume (103,057 tonnes) and value (US$528.5 million). Korea remains in fourth place but has achieved exceptional growth this year, jumping 125% in volume (90,640 tonnes) and 168% in value to US$422.3 million.

Other markets achieving strong growth in 2010 include Russia, where exports have more than doubled in volume (49,766 tonnes) and quadrupled in value to US$134.3 million. This reflects a nearly 700% surge in muscle cut exports to Russia, valued at US$95.3 million. Exports to Taiwan have eclipsed the previous record, reaching 31,522 tonnes valued at US$172.4 million. This is an increase of 42% in volume and 51% in value over 2009. Exports to Hong Kong are also up sharply this year - 53% in volume (28,735 tonnes) and 70% in value (US$109.2 million).

The Middle East has emerged as a region of tremendous growth for US beef, increasing by 28% in volume (104,732 tonnes) and 65% in value to US$200 million. Like Russia, this sharp increase in value reflects a strong surge in muscle-cut demand, though the region remains a top destination for beef variety meat.

Exports to the Southeast Asian region are up 10% in volume (57,321 tonnes) and 16% in value to US$187.4 million, despite a down year for exports to Vietnam. Strong growth in Indonesia and the Philippines has fueled the region's solid performance.