US October beef, veal exports up 5.4%

The US beef and veal exports for the month of October rose 5.4% compared with last year with the cumulative exports for 2013 up 4%, as shown last week by the latest trade data released by the USDA Economic Research Service (ERS) and Foreign Agriculture Service (FAS).

Japan has again emerged as the leading destination for US beef. October beef exports to Japan increased more than 42% from last year, and year-to-date exports increased almost 47%.

In February 2013, Japan resumed US beef imports from animals less than 30 months of age. Japan was the leading customer prior to discovery of the first case of Bovine spongiform encephalopathy (BSE) in the US in December 2003, when Japan banned US beef imports. Trade for only beef from cattle slaughtered at 20 months of age or less resumed in 2005.

Strong October beef and veal exports to several other countries also were tallied with exports to Mexico up 72%, Hong Kong up 57% and South Korea up 28%.

For 2013 through October, the top volume importers for US beef and veal in order of importance were Japan (increased 47% for the year), Canada (increased 6.3%), Mexico (increased 5.5%), Hong Kong (increased 67%), South Korea (decreased 6.2%) and Taiwan (increased 99%). In 2012, Russia was the sixth leading destination for US beef, which amounted to more than 6% of beef exports.

Beef exports to Russia had been gradually increasing the last several years; however, earlier this year Russia announced that it was banning all beef, pork and turkey from the US unless it could be certified free of ractopamine. Since the US did not have a ractopamine free certification process, beef exports to Russia stopped.

The USDA Agricultural Marketing Service (AMS) announced on November 5 the procedure for a new Quality Systems Verification Programme (QSVP) called "Never Fed Beta Agonists." This programme provides confirmation to customers that require verification of a marketing claim that beef and pork meat is derived from animals that were never fed beta agonists and is free of beta agonist residues.

The Never Fed Beta Agonists marketing claim is available to companies that produce livestock, beef and pork products and submit marketing programmes to AMS for verification and monitoring. Russian officials have indicated that they may be willing to lift the ban on US beef in 2014 and will probably institute a quota and tariff programme.

For January through October 2013, the value of US beef and beef products exports was US$5.081 billion, increased 11% compared with last year. International trade is very important to the US beef industry.

The value of all US cattle, beef and by-product exports was US$7.9 billion in 2012. The US imported about US$5.6 billion worth of cattle, beef and by-products resulting in a US$2.3 billion trade surplus.