February 16, 2009

US beef and pork muscle meat exports in December posted gains of nearly 16 percent and 6 percent, respectively, from a year earlier, while the yearly totals were up a whopping 35 percent for beef and 49 percent for pork.

 

The US Department of Agriculture released the export data for December this week.

 

Total beef exports, which includes the muscle cuts plus variety meats such as livers and hearts, for the year were 984,712 tonnes, a gain of 28 percent from 2007.

 

The pork muscle cuts and variety meats total for the year was nearly 2.053 million tonnes, an increase of 57 percent from the previous year. Pork exports in 2008 set a new record for the 17th consecutive year. The gains last year were so large in fact that the 2007 total was beaten during the third quarter of 2008.

 

The increase in value of the meat exports was equally impressive. Beef sales abroad brought in more than US$3.6 billion, a gain of 38 percent from 2007. Pork sales totalled nearly US$4.9 billion, up 55 percent from the previous year.

 

Analysts and meat brokers said the weak value of the US dollar early last year helped get exports rolling. Also, sales of pork to China/Hong Kong surged after hog supplies there were reduced by disease and severe winter weather a year ago.

 

Japan was the leading customer of US pork in quantity as well as value, according to data from the US Meat Export Federation. China/Hong Kong was the second largest customer with a gain of 136 percent from the previous year. Mexico was a close third while Russia and Canada rounded out the top five. These five markets accounted for nearly 80% of the total volume of pork and pork variety meats shipped last year.

 

Mexico and Canada were the top two international customers for US beef. These two countries together purchased nearly 56 percent of the beef and beef variety meats exported last year, USMEF data showed.

 

Total pork exports last year were nearly four times larger than in 1998 and the value was more than four times larger.

 

Beef exports have climbed in each of the last four years after sliding sharply in 2004 following the US' first case of bovine spongiform encephalopathy, or mad-cow disease, in late 2003. The record for total beef exports was set in 2000 at nearly 1.280 million tonnes. The record for value, however, was set in 2003 at $3.856 billion, according to USMEF data.

 

USMEF said the meat from nearly one of every four hogs slaughtered in the US was exported last year. The value of the pork shipped internationally amounted to US$42.31 per head slaughtered, compared with US$29.16 per head the previous year.

 

There are some areas of concern for export sales in 2009 as a result of the global economic crisis, USMEF said in a release. There are 35 US pork facilities currently delisted from shipping to Russia, so sales could get off to a slow start to that country in 2009, said Erin Daley, USMEF economist. Also, the challenging economic situation and devaluation of the currency in Russia could negatively affect sales to that country.

 

China/Hong Kong also "bears watching," Daley said. That market emerged as the second largest for US pork in 2008, but production has increased there. The hog inventory in China as of the end of the third quarter was up 6.6 percent from a year earlier, and the sow population was up 12.4 percent, she said.

 

Last week's cattle slaughter was estimated at 614,000 head, compared with 622,000 a week ago and 624,000 a year ago.

 

The week's hog slaughter estimate was 2.236 million head, compared with 2.222 million a week ago and 2.221 million a year ago.

 

The USDA estimated total beef, pork and lamb production for the week at 942.8 million pounds. Last week's output was 945.2 million pounds, and the year-ago figure was 939.4 million pounds.

 

Broiler/fryer slaughter for the week was estimated at 154.969 million head, compared with 155.496 million a week ago and 163.748 million a year ago.