Development on a strong first-half efficiency, July exports of U.S. beef persisted to outpace year-ago ranges, in line with information launched through USDA and compiled through USMEF. Red meat exports took a step again in July, posting the bottom quantity since January, however export cost in line with head of fed slaughter once more exceeded $400.
July beef exports totaled 219,014 metric lots (mt), up 5% year-over-year, whilst export cost greater 1% to $628.7 million. Throughout the first seven months of 2023, beef exports had been 13% above final yr’s tempo at 1.69 million mt, valued at $4.67 billion (up 10%).
“Marketplace diversification has been the highest precedence for the U.S. beef business and the ones efforts are definitely mirrored once more in those effects,” stated USMEF President and CEO Dan Halstrom. “In July, exports trended decrease to China/Hong Kong, Japan and South Korea, however our Western Hemisphere markets and different locations within the Asia-Pacific persisted to polish. That is precisely the kind of huge world footprint the business must take care of constant export expansion.”
July pork exports totaled 103,167 mt, down 18% from a yr in the past and the bottom in six months. Export cost used to be $810.4 million, down 19% and the bottom since February. For January thru July, pork exports trailed final yr’s file tempo through 11% in quantity (772,343 mt) and 19% in cost ($5.81 billion).
“It’s for sure a difficult setting at the pork facet, due partly to restricted provides but in addition continual headwinds in our key Asian markets,” Halstrom defined. “Regardless that it’s taking longer than expected, we nonetheless be expecting a broader foodservice rebound in Asia. And a few vibrant spots for U.S. pork come with sustained call for in Taiwan, particularly for selection pork cuts, and the ongoing momentum in Mexico. It’s additionally encouraging to look per-head export cost keeping up a prime stage. That is crucial metric for gauging the returns delivered through the world markets, even if our manufacturing is trending decrease.”
Western Hemisphere markets bolster July beef exports
Red meat exports to main marketplace Mexico proceed to a ways exceed final yr’s file tempo, with July shipments up 15% from a yr in the past to 81,081 mt. July export cost greater 12% to $189.4 million. January-July exports to Mexico greater 14% from a yr in the past to 614,015 mt, whilst cost soared 20% to $1.26 billion. This incorporated a surge in beef selection meat exports, which greater 47% to 90,311 mt, valued at $160.6 million (up 43%).
July used to be every other sturdy month for beef exports to Central The us, which greater 23% from a yr in the past to 9,138 mt, valued at $27.3 million (up 26%). January-July shipments to the area had been up 6% to 70,828 mt, whilst cost climbed 12% to $203.2 million. Enlargement used to be fueled through sturdy call for in Guatemala, El Salvador, Honduras, Costa Rica and Nicaragua.
Taiwan’s call for for U.S. beef continues to make an outstanding rebound in 2023. July exports to Taiwan had been 2,388 mt, up from simply 352 mt a yr in the past. July cost reached $7.8 million, up from simply $880,000. January-July exports had been the biggest since 2013, expanding 539% from a yr in the past to twelve,668 mt, whilst cost climbed 627% to $41.3 million. This yr’s exports to Taiwan already exceed the mixed effects from calendar years 2021 and 2002, which totaled most effective 9,500 mt valued at $29 million.
Different January-July export effects for U.S. beef come with:
- Even though beef exports to South Korea trended decrease in July, shipments in the course of the first seven months of the yr nonetheless greater 6% to 113,756 mt. Export cost declined moderately, falling 1% to $370.6 million. In fresh months, Korea has carried out duty-free quotas for imported beef as a part of its effort to fight meals value inflation. Those quotas principally get advantages Canadian, Mexican and Brazilian beef, as imports from the U.S., Ecu Union and Chile already input at 0 responsibility underneath loose business agreements with Korea.
- Red meat exports to China/Hong Kong, that are these days basically selection meat, had been additionally decrease in July however stay smartly forward of final yr’s tempo. January-July shipments totaled 315,539 mt, up 18% year-over-year, valued at $813.6 million (up 14%).
- In Japan, July beef exports had been down 12% from a yr in the past to twenty-five,357 mt, whilst cost fell 9% to $106. 9 million. This driven January-July shipments 3% underneath final yr’s tempo at 212,626 mt, valued at $856.3 million (down 6%).
- July beef exports to Canada greater 15% from a yr in the past to 16,615 mt, valued at $67 million (up 2%). Via July, exports to Canada had been 11% above final yr at 119,341 mt, even though cost fell 1% to $472.2 million.
- Fueled through forged expansion within the Philippines and Vietnam and surging call for from Malaysia, beef exports to the ASEAN area reached 43,689 mt thru July, up 51% from a yr in the past, whilst cost greater 26% to $103.5 million. Home manufacturing within the Philippines and Malaysia remains to be impacted through African swine fever. Alternatives for U.S. exporters have additionally greater because of tighter provides of Ecu beef.
- Call for for U.S. beef has rebounded dramatically in each Australia and New Zealand, pushing January-July exports to 45,173 mt, up 74% from a yr in the past. Export cost greater 64% to $159.1 million. Whilst marketplace get admission to is proscribed, recent/frozen U.S. beef is also imported for additional processing and the area has a rising urge for food for value-added processed U.S. beef merchandise.
- Exports to the Dominican Republic are on a file tempo thru July, totaling 60,518 mt (up 26% from a yr in the past) valued at $163.4 million (up 34%). Brazil used to be not too long ago granted get admission to for a couple of beef institutions, including to festival from the UK, Canada and the Ecu Union. Alternatively, the U.S. is the DR’s dominant beef provider and the one one with zero-duty get admission to thru a loose business settlement.
- Along with the expansion completed in Mexico (see above), July exports of beef selection meat additionally greater year-over-year to the ASEAN, Canada, Korea, Central The us and the Caribbean. This offset a decline to main marketplace China, even though January-July exports to China are nonetheless on a file tempo. July selection meat exports had been up 6% to 48,057 mt, valued at $108.9 million (up 4%). January-July shipments established a file tempo, totaling 345,070 mt, up 28% from a yr in the past, valued at $812.7 million (up 19%).
- July beef export cost equated to $65.38 in line with head slaughtered, down 3% from a yr in the past, whilst the January-July reasonable greater 8% to $64.07. Exports accounted for 30.3% of overall July beef manufacturing, up one share level from a yr in the past. For muscle cuts most effective, exports accounted for 25.5% of manufacturing, up from 24.7%. For January thru July, those ratios had been 29.9% of overall manufacturing and 25.6% for muscle cuts, up from 26.8% and 23.6%, respectively, a yr in the past.
July pork exports climb to Mexico and Taiwan however maximum markets development decrease
Red meat exports to Mexico persisted to achieve momentum in July, mountain climbing 31% from a yr in the past to 17,663 mt. Export cost soared 55% in July, achieving $105.1 million. Throughout the first seven months of the yr, exports to Mexico greater 17% to 117,834 mt, valued at $662.6 million (up 24%). Mexico is the main quantity vacation spot for pork selection meat, and the ones exports have greater at a identical tempo – up 18% in quantity (61,762 mt) and 24% in cost ($175.2 million).
After a sluggish get started in 2023, pork exports to Taiwan have exceeded year-ago ranges in 3 consecutive months. July exports to Taiwan climbed 15% to five,298 mt, whilst cost greater 2% to $52.2 million. Via July, exports to Taiwan remained 7% underneath final yr’s file tempo at 39,090 mt, valued at $379.8 million (down 23%).
Red meat exports to Canada posted every other sturdy month in July, with shipments mountain climbing 12% from a yr in the past to 9,969 mt, valued at $87.2 million (up 17%). January-July exports to Canada greater 2% in each quantity (61,933 mt) and price ($504.8 million).
Different January-July export effects for U.S. pork come with:
- Red meat exports to main marketplace South Korea slumped in July, down 24% from a yr in the past and the bottom quantity since June 2020. Export cost used to be $155.1 million, down 22% and the bottom since February. Along with inflationary drive affecting Korean customers, transportation and financial task used to be considerably impacted through heavy rain and flooding in some spaces of Korea in mid-July (and once more in early August). For January thru July, exports to Korea totaled 151,095 mt, down 13% from final yr’s file tempo, valued at $1.24 billion (down 28%). On a good observe, pork selection meat exports to Korea have greater sharply this yr in each quantity (8,818 mt, up 65%) and price ($47.7 million, up 72%).
- July pork exports to Japan additionally declined considerably, down 37% from a yr in the past to 19,350, valued at $150.3 million, down 35%. For January thru July, exports had been down 20% to 148,394 mt, valued at $1.07 billion (down 28%). Whilst Japan stays the main cost marketplace for U.S. pork selection meat (basically tongues and skirts), January-July exports fell 22% to 26,123 mt, valued at $253.6 million (down 25%).
- Red meat exports to China had been additionally down considerably from final yr’s file tempo, with January-July shipments falling 20% to 114,967 mt, valued at $964.2 million (down 25%). However with a post-COVID go back in industry shuttle and tourism, exports to neighboring Hong Kong have rebounded this yr, expanding 23% to 22,906 mt, valued at $233.8 million (up 5%).
- Led through expansion in Cote D’Ivoire, July pork exports to Africa greater 25% from a yr in the past to at least one,435 mt, even though export cost trended decrease ($1.6 million, down 16%). Via July, exports to Africa – that are nearly fully pork selection meat – greater 67% to fourteen,199 mt, with cost up 29% to $16.1 million. Exports trended upper to South Africa and Cote D’Ivoire.
- Red meat exports to the Dominican Republic greater moderately in July to 750 mt, valued at $8.4 million. January-July exports to the DR had been 5% above final yr’s file tempo at 5,644 mt, valued at $61.4 million (up 9%). Very similar to beef, the DR not too long ago granted get admission to to pork imported from some areas of Brazil. So far, following introduced plant approvals, most effective small volumes of Brazilian pork offal had been reported. This transformation will heighten festival within the DR, however U.S. pork enjoys duty-free get admission to whilst Brazilian pork shall be topic to a 20% tariff.
- Whilst pork exports to Central The us have trended decrease in 2023, Honduras has decidedly bucked this development. July shipments to Honduras totaled 226 mt, up from simply 95 mt final yr, whilst export cost just about doubled to $1.2 million. January-July exports to Honduras greater 23% to at least one,752 mt, whilst cost climbed 40% to $9 million – a file tempo for each quantity and price.
- Red meat exports to Peru jumped 83% from a yr in the past in July, achieving 1,082 mt, whilst cost greater 78% to $3.7 million. Exports thru July had been up 38% to 4,495 mt, making Peru this yr’s biggest South American vacation spot for U.S. pork, with about three-fourths of the amount being selection meat. Export cost greater 15% to $19.3 million.
- July pork export cost equated to $403.63 in line with head of fed slaughter, down 15% from a yr in the past. The January-July reasonable used to be $395.65, down 17%. Exports accounted for 14.2% of overall July pork manufacturing and 11.8% for muscle cuts most effective, down considerably from the very prime ratios (16.4% and 14.1%, respectively) posted a yr in the past. For January thru July, exports accounted for 14.4% of overall manufacturing and 12.1% for muscle cuts, in comparison to 15.5% and 13.3%, respectively, final yr.
Lamb export quantity rebounds in July
Following a sluggish 2nd quarter, July exports of U.S. lamb muscle cuts confirmed indicators of a rebound. July export quantity used to be 197 mt, up 22% from a yr in the past and the very best since March. Export cost used to be $928,000, down 2% year-over-year however the very best since April.
For January thru July, lamb exports had been 1% underneath final yr’s tempo at 1,264 mt, whilst cost fell 6% to $7.3 million. Markets trending upper incorporated Mexico, Canada, the Netherlands Antilles, Panama and Guatemala.
Whole January-July export effects for U.S. beef, pork and lamb are to be had from USMEF’s statistics internet web page.
For questions, please touch Joe Schuele or name 303-547-0030.
NOTES:
- Export statistics check with each muscle cuts and diversity meat, except in a different way famous.
- One metric ton (mt) = 2,204.622 kilos.
- As famous the previous a number of months, USMEF has raised considerations in recent times with USDA about export information amassed through the Division of Trade for lamb selection meat to Mexico. Reported volumes have declined dramatically since July, suggesting that the information reported in prior months and years had been disproportionately prime. USMEF is due to this fact focusing year-over-year comparisons on lamb muscle cuts most effective.
- U.S. beef and pork these days face retaliatory tasks in China. In February 2020, China introduced an obligation exclusion procedure that permits importers to use for reduction from tasks imposed based on U.S. Phase 301 tasks. When an utility is a success, the speed for U.S. pork can decline to the MFN price of 12% and the speed for U.S. beef can decline to 37% (the MFN price plus the 25% Phase 232 retaliatory responsibility, which stays in position).