We recently told you that U.S. beef exports saw another new value record in March. They totaled 126,285 metric tons, up 1% from a year ago and the third largest on record, while the value was up 33% to a record $1.07 billion. Vice President for Economic Analysis at the U.S. Meat Export Federation (USMEF), Erin Borror, says every month it continues to be impressive.
“That was on a value basis, up by a third year on year. So, for a little bit of context, we’ve seen those beef prices, including for the export items accelerate from about April-May a year ago. So, we’re going to get into more challenging year on year comparisons, especially from the middle of this year. But yes, every month continues to be impressive, and it’s exporting a larger share of production and pretty widespread growth.”
Borror said China, including Hong Kong, was up 36 percent again, which they continue to be big gainers.
“Korea up nine percent in the first quarter on volume, China, including Hong Kong up 36 percent, again. But then you have kind of widespread growth, Middle East is coming back in on both variety meats and muscle cuts, Taiwan, up 47 percent, a huge star into that market, and then in the islands in the Caribbean and the Dominican Republic, we’re seeing some food service coming back in there, they were up 41 percent, and Central America has been really strong on both beef and pork, and they continue to grow, so those beef volumes into Central America up 14 percent.”
But, the market is still struggling with setbacks in China due to COVID.
“We’ve maybe pulled back our growth for the entire year a bit given the situation mostly in Shanghai but in other cities, and then of course concerns about Beijing. The current situation, we can’t really downplay its significance. Most of U.S. beef had been going into that Shanghai port and we know that moving products out of ports and just trucking out of the region, plus some restrictions even on cold storage, especially if there’s a COVID case, there’s big challenges for moving product, not to mention demand impacts with restrictions on food service. But still, this can’t last forever, and we know there’s still the demand in that market.”
Beef Export Value Sets Another Record; Pork Exports Improve but Remain Below Last Year’s Record Totals
U.S. beef exports soared to another new value record in March, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). March pork exports were the largest so far this year but well below the record-large totals posted in March 2021. Lamb exports continued to gain momentum in March, reaching the third largest monthly volume on record and the highest value in nearly eight years.
Beef exports totaled 126,285 metric tons (mt) in March, up 1% from a year ago and the third largest on record, while value climbed 33% to a record $1.07 billion. First quarter exports increased 6% to 353,852 mt, valued at just over $3 billion (up 41%).
“Global demand for U.S. beef has eclipsed anything I have seen in many years in the meat business,” said USMEF President and CEO Dan Halstrom. “While this momentum is fueled by mainstay markets such as South Korea, Japan and Taiwan, demand is also very strong in China/Hong Kong and key Latin American markets, while exports to the Middle East have rebounded impressively.”
Halstrom cautioned that first quarter results do not fully reflect the impact of recent COVID-19 lockdowns in China that have slowed product movement and forced many restaurants to suspend or limit service. These obstacles are likely to have a greater impact on April and May export data. He also noted that while beef demand has been very resilient, inflation represents a potential headwind.
“Consumers throughout the world have shown how much they value the quality of U.S. beef, but disposable income is under increasing pressure as they pay more for energy and other daily needs,” he said.
March pork exports were 222,581 mt, the largest since November but nearly 25% below the record volume achieved a year ago. Export value was $615.3 million, also the highest since November but down 23% year-over-year. First quarter pork exports fell 20% from a year ago to 629,928 mt, valued at $1.71 billion (down 17%).
“While pork exports were down significantly from last year’s record, we saw some encouraging trends in the March results,” Halstrom explained. “U.S. pork commanded a higher price per pound than a year ago, with outstanding demand from Mexico and value growth in key markets such as South Korea and the Dominican Republic. The stronger U.S. dollar creates more price pressure in some destinations, but this will be offset to some degree by the narrowing price gap between U.S. and European pork.”
Halstrom added that pork, beef and lamb exporters continue to face logistical obstacles and delays when moving product overseas. The situation is especially challenging for chilled meat shipments to key Asian markets.
Korea emerges as top destination for U.S. beef, but Q1 growth broad-based
March beef exports to leading market South Korea totaled 26,834 mt, up 11% from a year ago, valued at $278.3 million – up 58% and the second highest on record, trailing only the record total ($316.4 million) posted in January.
First quarter exports to Korea were 75,445 mt, up 9% from a year ago, while export value climbed 57% to $792.6 million. Export growth to Korea has been largely driven by soaring retail demand, but the foodservice climate received a boost in April as Korea removed all COVID-related limits on restaurant operating hours and lifted most social distancing restrictions on consumers.
Following a similar course, Japan recently lifted the COVID quasi-state of emergency that was in place in 18 of the country’s 47 prefectures. March beef exports to Japan were 25,690 mt, down 10% from a year ago, but value still increased 17% to $212.6 million. First quarter exports to Japan climbed 22% in value to $594.2 million, despite a 4% decline in volume (72,179 mt).
China has taken a decidedly different approach to COVID outbreaks, recently imposing lockdowns in several large population centers. These policies have made it difficult for U.S. exporters to supply beef and pork to China and slowed demand from confined consumers. However, these developments will likely have a more significant impact on second quarter export results. COVID restrictions also slowed demand in Hong Kong, where the mandatory closing time for restaurants was only recently extended from 6:00 to 10:00 p.m. and the per-table limit was raised from two people to four.
With direct exports to China setting a new record, March beef exports to China/Hong Kong reached 22,745 mt, up 11% from a year ago, valued at $207.7 million (up 26%). This pushed first quarter export volume to 62,237 mt, up 36% year-over-year, while value climbed 59% to $582.4 million.
Other first quarter results for U.S. beef exports include:
- Exports to Taiwan raced to a fast start in …..
A detailed summary of first quarter export results is available on the USMEF website.