US beef, pork exports post solid June results
Aug. 12, 2011
by Meat&Poultry Staff
DENVER – US beef and pork exports are likely to set several new records in 2011 and each could eclipse the $5 billion mark for the first time ever — if the trend established in the first six months of the year holds up. June beef exports achieved the second-highest value ever at $461.8 million, according to statistics released by USDA and compiled by the US Meat Export Federation. This was 23 percent higher than June 2010, and has been surpassed only once — by the March 2011 value total of $475.2 million.
June beef exports in terms of volume reached 111,362 metric tons — an increase of 15 percent over June 2010. This brought the cumulative 2011 total to 620,851 metric tons valued at $2.55 billion, which was 25 percent higher in volume and 40 percent higher in value than last year’s pace. For the first half of this year, beef exports equated to 13.8 percent of total production with an export value of $192.42 per head of fed slaughter. The US has also recaptured its position as the world’s leading beef exporter, outpacing Australia and Brazil.
June pork exports were slightly higher in volume (165,786 metric tons) than last year and 6 percent higher in value ($451.2 million). This pushed first-half pork exports to 1.08 million metric tons valued at $2.81 billion — year-over-year increases of 14 percent and 19 percent, respectively. When compared to the all-time record year of 2008, the pace of this year’s pork exports is 6 percent higher in volume and 21 percent higher in value. For the first half of this year, pork exports accounted for more than 27 percent of total production with export value equal to $52.76 per head.
Extremely positive June results in Mexico and Canada firmly established their positions as the No. 1 and No. 2 markets for US beef. Demand for US beef in Mexico continues to rebound, as exports through June were 8 percent higher in volume (126,309 metric tons) and 25 percent higher in value ($474.3 million) than in 2010. Canada was the value pacesetter in June with exports topping $96.6 million – a new monthly record. Cumulatively through June, exports to Canada were 23 percent higher than last year in terms of volume (87,334 metric tons) and 44 percent higher in value ($463.9 million).
June exports to Japan reached their highest monthly volume (17,626 metric tons) since 2003, pushing the 2011 total 50 percent higher in volume (77,298 metric tons) and 54 percent higher in value ($416.3 million). Other key Asian markets for US beef have cooled somewhat from the red-hot pace set earlier this year, but the results remain very encouraging. Through June, exports to South Korea were 73 percent higher in volume (86,890 metric tons) than last year and 69 percent higher in value ($380.8 million). Hong Kong was up 82 percent in volume (26,521 metric tons) and 109 percent in value ($117.3 million).
With duty-free access on certain cuts and aggressive marketing programs firmly in place, US pork exports to Korea reached 122,880 metric tons valued at $301.5 million. This represented a 145 percent increase in volume over the first half of last year, and nearly triple the value.
Coming off a record value year in 2010 of more than $1.6 billion, pork exports to Japan have increased another 10 percent in volume (249,417 metric tons) and 13 percent in value ($944.2 million) through the first half of this year.
Mexico, the largest volume destination for US pork, saw exports fall by 3 percent in volume (260,858 metric tons) and hold steady in value ($484.9 million) compared to last year. US ham and shoulder cuts were recently granted a tariff reduction (from 5 percent to 2.5 percent) as a result of a settlement in the NAFTA trucking dispute. These retaliatory tariffs are scheduled to be removed completely in the near future, which should help US pork regain momentum in Mexico.