August 17, 2010

US pork and beef exports posts strong H1 results

A very solid June performance allowed US pork and beef exports to finish the first half of 2010 with strong momentum.

According to statistics released by USDA and compiled by the US Meat Export Federation (USMEF), pork exports of 164,000 tonnes (361.6 million pounds) were 24% higher than June 2009. Pork export value was US$316.4 million, up 34%. June beef exports were 25% above year-ago volumes, totaling 96,578 tonnes (212.9 million pounds), while the value in June was up 37% to US$377.6 million.

For the first six months of the year, pork exports were 3% above their year-ago pace in terms of volume (951,803 tonnes or 2.1 billion pounds). But with much-improved pork prices, export value was nearly 10% higher at US$2.35 billion. This is even slightly higher than the value reached in the first half of 2008 (US$2.32 billion), the year in which pork export value set an all-time record. Export value per head during the six-month period was more than US$44 - up significantly from US$39.20 in 2009. The industry exported 24% of its total production, compared to 23% last year.

Beef export volume reached 495,443 tonnes (1.09 billion pounds) - up 14% over the first half of 2009. Export value has fared even better, rising 22% to US$1.83 billion. Export value per steer and heifer slaughtered was US$139, compared to less than US$115 last year. The percentage of total production exported increased from 10-11%.

After an early-2010 slump caused mainly by high domestic pork inventories, US pork exports to Japan performed much better in the second quarter. January's export value was more than 25% below the year-ago level. By the end of the first quarter, export value still trailed the 2009 pace by 13%. But April, May and June were all solidly in the "plus" column, pushing export volume to 226,171 tonnes (498.6 million pounds) valued at US$834 million. This is a slightly higher volume and a 3% increase in value over the first half of last year.

"Due to foot-and-mouth disease and some other factors affecting its domestic industry, Japan's pork production has fallen by about 2% in recent months," said USMEF President and CEO Philip Seng.

US is the leading foreign supplier of pork to Japan, holding market share of about 45% for all imported pork and 72.5% of the high-value chilled market. However, Seng notes that these market shares have declined by about 2% since last year and says the US position of market leader absolutely cannot be taken for granted.

After shattering their all-time high in 2009, pork exports to Mexico have been on a record pace again this year. Through June, pork export volume to Mexico reached 269,598 tonnes (594.4 million pounds)-a 7% increase over the first half of 2009. At the same time, pork export value has been especially strong, rising 31% to US$482.5 million.