November 20, 2013

US September beef exports up, pork exports down slightly

Powered by a 37% jump in the volume of beef exports to Japan, 65% to Mexico and 102% to Hong Kong, US beef exports rose nearly 5% in September and are up 1% for the year. The value of those exports – up nearly 16% to Japan, 56% to Mexico, 182% to Hong Kong and more than 41% to South Korea - drove the value of US beef exports up 14% for the month and remained 10% ahead of the 2012 pace which set a record of US$5.51 billion.

US pork exports received a boost from sales to the China/Hong Kong region – up 14% in volume and 24% in value for the month - as well as strong sales to the Association of Southeast Asian Nations (ASEAN) region (up 45% in volume and nearly 47% in value), but continued access restrictions to Russia and a very competitive market in Japan continued to keep pork exports down 5% in value and more than 9% in volume for the month and 5% in both categories for the year.

"On the beef side, the industry aggressively pursued the opportunities available for US product when market access was expanded in Japan and Hong Kong, and we are seeing exciting growth in both those markets," said Philip Seng, USMEF president and CEO. "On pork, we are continuing to face challenges from strong competition in Japan that is driving down our market share, and access issues with Russia continue to hamper our industry, both in pork and beef."

The decline in pork exports to Japan and Russia amount to nearly all of the drop-off in pork export volume this year (81,874 tonnes of a total 85,705 tonnes decline) and more than the total dip in export value (US$246.7 million decline from the two markets versus US$213 million overall).

For the month of September, the US exported 94,698 tonnes of beef valued at US$505.5 million, accounting for 13% of total beef production and 11% of muscle cuts (versus 13% and 10%, respectively, last September). The export value per head of fed slaughter in September was US$249, up from US$227.65 a year ago.

Pork exports for the month totalled 166,650 tonnes valued at US$478.7 million, accounting for 25% of total US pork production and 21% of muscle cuts (versus 26.7% and 23%, respectively, last September). The export value per head for the month averaged US$53, down from US$53.43 last year.

Japan remains the top export market for US beef in 2013. Exports to Japan are up 52% in volume (183,942 tonnes) and 35% in value (US$1.1 billion) for the year, accounting for 21.3% of the total volume of US beef exports and 24.2% of the value.

The number two volume market for US beef, Mexico took larger volumes for four consecutive months, with September exports increasing nearly 65% in volume (18,990 tonnes) and 56% in value (US$82 million) over year-ago levels. For the year, it is down just 1% in volume (149,887 tonnes) and in value at US$641.7 million.

Canada remains a strong market for US beef, second in value and third in volume for the year at 133,776 tonnes (up 6%) valued at US$912.9 million (up 10%). Other key beef export markets for 2013 include Hong Kong with a 96% increase in volume (84,473 tonnes) and 137% in value (US$530.9 million); South Korea drops 19% in volume (75,962 tonnes) and 2% in value (US$419 million); the Middle East drops 3% in volume (111,895 tonnes) and 18% in value (US$211.8 million) for the year, with the decline coming in the competitive Egyptian muscle cut market; Central/South America increase 24% in volume (32,549 tonnes) and 15% in value (US$113.7 million) led by strong growth to Peru, Chile and Colombia; Taiwan increase 135% in volume (23,404 tonnes) and 195% in value (US$185.7 million).

Mexico remains the top volume market for US pork in 2013, with volume up 1% to 446,827 tonnes valued at US$849.8 million, a 4% increase. Japan is the top value market at US$1.4 billion, a 6% decline over-year, while volume is down 8% to 317,710 tonnes.

Boosted by a strong September, exports to China/Hong Kong were even in volume (313,379 tonnes) and up 6% in value (US$670.4 million). Other key pork export markets for 2013 include Canada dropping 1% in volume (171,091 tonnes) but increasing 1% in value (US$637.5 million); Central/South America increase 32% in volume (79,880 tonnes) and 29% in value (US$199.4 million) led by strong growth to Colombia, Honduras and Chile; South Korea drops 33% in volume (70,776 tonnes) and 36% in value (US$194.9 million); ASEAN increase 44% in volume (50,456 tonnes) and 39% in value (US$121.6 million) led by strong growth by the Philippines and Singapore.