July Meat Export Volumes Lower, But Values Remain On Record Pace

U.S. red meat exports slowed in July, the first time this year that year-over-year export volumes were lower for both beef and pork. But 2014 exports remain on a strong pace, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF), contractor to the beef checkoff.

July beef exports fell 15 percent in volume to 224 million pounds, although this was in comparison to large totals in July 2013. July export value was steady at $621.7 million. For January through July, beef exports were still 4 percent higher in volume (1.5 billion pounds) and remained on a record pace in value ($3.89 billion, +13 percent).

U.S. beef performing well in key Asian markets

January-July beef exports equated to 14 percent of total production and 11 percent for muscle cuts only (these ratios were up slightly from a year ago). Export value per head of fed slaughter was $298.56 in July – down slightly from the June record but still up more than $25 year-over-year. For January-July, export value per head was $272.70, up $31.25.

“Demand for U.S. beef in Asian markets has continued to strengthen this year, adding further value to cuts that are popular there and underutilized domestically,” said USMEF President and CEO Philip Seng. “With our limited supplies, competition for these cuts among Asian buyers contributes greatly to U.S. cattle prices. USMEF continues to work with our industry partners to educate the trade about alternative cuts and merchandising ideas, so that we can deliver value to our Asian customers even in these times of historically tight supplies.”

January-July highlights for U.S. beef included:

• Exports to South Korea totaled 145 million pounds (+12 percent) valued at $445.4 million (+41 percent) as demand for U.S. beef strengthened across all sectors and U.S. beef gained market share.
• Despite slumping in July, exports to Hong Kong reached 179 million pounds valued at $564.6 million, up 35 percent and 53 percent, respectively.
• While export volume to Japan was moderately lower, it remained the leading destination for U.S. beef exports in both volume (301 million pounds, -4 percent) and value ($860.8 million, +1 percent). Japan has been a difficult market for other suppliers this year, importing less beef from all other main exporters while U.S. beef continued to gain market share.