China's duties create major headwind for U.S. beef and pork exports

Due in part to a sharp decline in shipments to China, April exports of U.S. beef and pork trended lower than a year ago, according to data released by the U.S. Department of Agriculture  and compiled by the U.S. Meat Export Federation (USMEF).

China’s retaliatory duties are a major headwind for both U.S. beef and pork, while beef exporters face an additional obstacle. China has failed to renew establishment registrations for U.S. beef plants and cold storage facilities, the majority of which expired in mid-March.

Strong beef demand from Korea, Central and South America
April beef exports totaled 100,659 metric tons (mt), down 10% from a year ago, while value fell 8% to $824.5 million. Exports to China declined nearly 70%, and shipments also trended lower to Mexico, Taiwan and the Middle East. These results were partially offset by larger exports to South Korea, Japan and Central and South America.

For January through April, beef exports were 3% below last year’s pace at 411,027 mt. Export value was down just 1% to $3.35 billion.

“We expected beef shipments to China to hit a wall in April, due to the one-two punch of higher tariffs and expired plant registrations,” said USMEF president and chief executive officer Dan Halstrom. “We are hopeful that these issues will be resolved soon and are encouraged by this week’s developments on trade negotiations with China. In the meantime, USMEF remains committed to market diversification, and we have accelerated efforts to develop alternative destinations for cuts and variety meat items normally shipped to China.”