July 18, 2013
US beef exports up 3% in May
US beef exports rose 3% in volume in May, and a healthy 9% in value, according to statistics released by USDA and compiled by the US Meat Export Federation (USMEF), contractor to the Beef Checkoff Programme.
The inability of the US to ship beef to Russia continues to put a damper on US red meat exports this year. Excluding Russia, beef export volume for May increased 12% and export volume for the first five months of 2013 rose 3.5% instead of falling 3%.
"The loss of a key market like Russia ripples through the red meat industry," said US Meat Export Federation President and CEO Philip Seng. "The absence of one of the largest meat purchasers in the world affects the volume of product sold and, more importantly, the price that other customers need to pay for it in a competitive marketplace."
In May, total US beef (muscle cut and variety meat) exports rose 3% over last year''s levels to 215 million pounds valued at US$513.6 million, a 9% increase. They accounted for 10% of beef muscle cut production and 12.7% of beef and variety meat production, similar levels to last year.
For January through May, export volumes dipped 3% to 972 million pounds valued at US$2.26 billion, a 3% increase over last year''s record-setting pace. The value of beef exports in May equated to US$231.67/head of fed slaughter, up from US$207.09 last year. The year-to-date export value averaged US$220.59/head, up more than US$10 from last year''s total of US$209.97.
Markets where access for US beef has improved this year led the way in May. Japan jumped 74% to 62 million pounds, just 8% shy of totals posted in May 2003.
"We were confident that the market for US beef in Japan would rebound when our access expanded," said Seng. "Our team in Japan is working aggressively to explore untapped niches to maintain the growth momentum for beef."
Beef exports to Hong Kong also rose (56% to 16 million pounds) while Taiwan''s totals increased from 621,000 pounds last year to six million pounds this May.
Exports were also steady to higher for: Canada (30.8 million pounds, +1%), Egypt (25 million pounds, steady), Central/South America (8.7 million pounds, +15% driven by larger volumes to Chile) and the Caribbean (3.7 million pounds tonnes, +2% on larger volumes to Jamaica).
Beef exports to Russia in May fell from 17 million pounds last year to 8,800 million pounds this year. For the year, exports to Russia are down 99% in volume (from 67 million pounds to 77,161 pounds) and 99% in value (from US$133.77 million).
Besides Russia, countries where beef exports remain challenged include Mexico (33 million pounds, -4.5%), South Korea (16 million pounds, -33%), and ASEAN (3 million pounds, -59% on smaller volumes to Vietnam and the Philippines).
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Mexico is buying less beef as consumers turn to more affordable proteins like poultry and pork. US poultry exports to Mexico were up 19% through May to 785 million pounds. At the same time, South Korea''s increased domestic beef production, combined with lower-priced Australian product, has dampened demand for high-quality US beef.
Through May, Japan was the leading destination for US beef with exports up 56%. They accounted for 20% of all US beef exports by volume and 24% of export value. Mexico was no. two in volume but Canada was second in value. South Korea, Hong Kong, Taiwan and Egypt rounded out the top seven in value. The volume ranking was: Japan, Mexico, Canada, Egypt, Korea, Hong Kong and Taiwan.