Pork Exports Remain on Record Pace through September; Beef Exports Trend Lower

September exports of U.S. pork increased 10% year-over-year, keeping 2020 exports on a record pace, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports were fairly steady with last year in major Asian markets but trended lower overall.

 

Pork exports reached 222,475 metric tons (mt) in September, with value increasing 6% to $563.2 million. Through the first three quarters of the year, exports were 16% ahead of last year’s record pace in both volume (2.22 million mt) and value ($5.69 billion). The increases were even stronger for pork muscle cuts, jumping 22% to 1.87 million mt valued at $4.93 billion (up 19%).

 

Pork export value averaged $51.07 per head slaughtered in September, up 2% from a year ago, while the January-September average increased 14% to $58.63. Exports accounted for 26.5% of total pork production in September and 23.9% for muscle cuts only, up from 25.1% and 21.7%, respectively. Through September, exports accounted for 29.6% of total production and 26.9% for muscle cuts, up from the 2019 ratios of 26.3% and 22.8%.

 

September beef exports were down 6% from a year ago to 103,277 mt, valued at $600.9 million (down 9%). Through September, exports trailed last year’s pace by 8% in volume (911,936 mt) and 9% in value ($5.55 billion).

 

Beef export value averaged $274.31 per head of fed slaughter in September, down 14% from a year ago, while the January-September average fell 5% to $295.21. Exports accounted for 12.8% of September beef production and 10.5% for muscle cuts only, down from 14.6% and 11.9%, respectively, in September 2019. January-September exports accounted for 13.2% of total production and 11% for muscle cuts, down from 14.3% and 11.6%, respectively.

 

 

Pork exports to the China/Hong Kong region remained strong in September, outpacing last year by 23% in volume (62,791 mt) and 14% in value ($132 million) and pushing exports through the third quarter to 800,747 mt (up 96% from a year ago) valued at $1.83 billion (up 120%). However, September exports to China/Hong Kong accounted for 28% of total U.S. export volume and 23% of total value, compared to 37% and 33%, respectively, from January through August. U.S. pork continues to face a 25% tariff disadvantage in China, due to retaliatory duties related to U.S. section 232 tariffs on steel and aluminum.

 

“Exporting countries are watching the hog production recovery in China very closely, because we know its demand for imported pork is moderating,” said USMEF President and CEO Dan Halstrom. “While USMEF is pleased to see U.S. pork exports to China/Hong Kong maintaining a strong pace, it is vitally important that our export destinations remain diversified. The U.S. industry continues to pursue this goal aggressively, both in the Asia Pacific region and the Western Hemisphere.”

 

Reflecting a continued tight labor situation, September exports of bone-in ham and shoulder cuts were up 46% from a year ago at 56,792 mt, led by Mexico (39,600 mt, +13%) and China (11,100 mt, up from minimal volumes a year ago), plus growth to Canada, Colombia, Philippines and Vietnam. Conversely, smaller pork variety meat exports are also due in part to limited U.S. labor availability.

 

September exports to Japan, traditionally the leading value market for U.S. pork, increased 11% from a year ago in both volume (30,746 mt) and value ($126.7 million). Despite slumping in May and June due mainly to interruptions in production, exports through September were up 2% from a year ago to 284,108 mt, valued at $1.19 billion (up 4%). Japan’s imports of U.S. ground seasoned pork reached $243 million through September, up 46% from last year, capitalizing on tariff reductions included in the U.S.-Japan Trade Agreement.

 

For the second consecutive month Mexico was the leading volume destination for U.S. pork muscle cuts, with September exports reaching 47,898 mt (up 2% from a year ago). But when adding variety meat, September exports were down 2% at 55,340 mt, valued at $88.8 million (down 9%). January-September exports declined 7% in volume (490,893 mt) and 14% in value ($790.6 million). Despite the lower volumes, U.S. share of Mexico’s pork imports has rebounded strongly in 2020 to 89%, up from 83% in the same period last year.

 

Other January-September highlights for U.S. pork include:

 

COVID-19 related obstacles continue to negatively impact demand for U.S. beef in several key markets, especially Mexico, Central America and the Caribbean. Some Asian markets also recently re-imposed social distancing measures, but retail and takeout demand in these markets tends to offset more of the losses in sit-down dining.

 

 

“Although restaurant traffic and foodservice activity are not back to normal in most Asian markets, USMEF is very encouraged by the recovery in Asia and this was especially evident in the strong August and September exports of U.S. beef to South Korea, Taiwan and China,” Halstrom said. “As we close out the year, U.S. beef has a great opportunity to capture greater market share in Asia due to tightening supplies from Australia. While it will require more time, we also expect U.S. beef to regain momentum in regions where beef demand depends more heavily on travel and tourism, and where e-commerce channels are not as well-developed.”

 

Following a record performance in August, beef exports to Korea remained strong in September at 21,450 mt, up slightly from a year ago, though value slipped 7% to $140.7 million. Through September, exports to Korea trailed last year’s record pace by 3% in volume (189,712 mt) and 6% in value ($1.32 billion). Korea’s imports of chilled U.S. beef were on a record pace through September, increasing 15% from a year ago to 47,370 mt, with market share climbing to 64%.