South Korea

South Korea Opens Duty-Free Quota for Imported Beef

Dan Beef, Cattle, Exports/Imports, Marketing, Pork, U.S. Meat Export Federation (USMEF)

South Korea
south korea

South Korea is currently the leading value market for U.S. beef exports, with shipments on pace to possibly reach $3 billion this year. But rising food prices are a concern in Korea, and the government is taking steps to ease the burden on consumers. As part of this effort, Korea recently opened a 100,000 metric ton duty-free quota on imported beef, open to all eligible suppliers.

U.S. Meat Export Federation (USMEF) Vice President for Economic Analysis, Erin Borror, provides information about the new quota.

Borer also explains how U.S. beef has a tariff rate advantage over major competitors in Korea.

Through June, U.S. beef exports to Korea are on a record pace at $1.52 billion, while global exports reached $6.19 billion.


First-Half Beef Exports on $1 Billion/Month Pace; Pork Exports Below Last Year

U.S. beef exports remained on a red-hot pace in June, topping $1 billion for the fifth time this year (after twice hitting $1 billion in 2021), according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Exports of U.S. pork remained below last year’s large totals in June, while lamb exports continued to trend higher.

June beef exports totaled 130,638 metric tons (mt), down slightly from the record volume posted in May but up 16% year-over-year and the fourth largest on record. Export value was $1.05 billion in June, also down slightly from the May record but 31% above last year. For the first half of 2022, beef exports increased 6% from a year ago to 743,904 mt, valued at $6.19 billion (up 33%).

“The first-half performance for U.S. beef exports was nothing short of remarkable, especially considering the growing economic headwinds in many key markets and continued shipping and logistical challenges,” said USMEF President and CEO Dan Halstrom. “The rebound in the global foodservice sector has provided a tremendous lift in 2022, even though it is still far from a full recovery in many Asian and European destinations. We definitely see opportunities for further growth, though inflationary pressure and the stronger U.S. dollar continue to raise concerns about consumer spending power.”

Pork exports reached 219,131 mt in June, down 8% from a year ago, valued at $649.9 million (down 7%). First-half exports were 18% below last year at 1.29 million mt, valued at $3.62 billion (down 16%).

“The decline in first-half pork exports was not unexpected, given the recovery in China’s domestic production and its reduced need for imports,” Halstrom said. “The good news is China’s hog price is up about 40% since mid-June and we are seeing some rebound in China’s demand for pork variety meat. Meanwhile pork shipments to Mexico remain on a record-shattering pace and demand has also strengthened in recent months in markets such as Korea, Colombia and the Caribbean. In these key destinations, the gains U.S. pork has made in the processing and retail sectors are being complemented by stronger sales in foodservice.”

Broad-based growth fuels torrid first-half pace for beef export volume and value

Japan was the leading volume market for U.S. beef exports in June, with exports increasing 12% to 27,891 mt. Export value was up 15% to $211.7 million. First-half exports to Japan were steady with last year in volume at 155,513 mt but jumped 20% in value to $1.25 billion. This included 28,045 mt of beef variety meat – mainly tongues and skirts – which was up just 1% from a year ago but export value soared 41% to $287.4 million.

June exports to South Korea jumped 22% from a year ago to 24,820 mt, while value increased 36% to $230.1 million. First-half exports to Korea were 6% ahead of last year’s record pace in volume (150,493), while value soared 40% to $1.52 billion. To combat inflation, Korea recently opened a 100,000 mt duty-free quota for imported beef, which is available to all eligible suppliers through the end of the year. The U.S. is the largest supplier of beef to Korea and while the quota will reduce U.S. beef’s tariff rate advantage over major competitors, it is a positive development in that it will help offset the impact of Korea’s weakened currency and bolster the relative affordability of U.S. beef.

COVID lockdowns extended into early June in some of China’s largest cities, but June beef exports to China/Hong Kong still climbed 37% from a year ago to 25,270 mt. Export value soared 50% to $240.7 million, making China/Hong Kong the largest value destination for U.S. beef in June. First-half exports to the region were 27% ahead of last year’s record pace in volume (135,821 mt) and 44% higher in value at $1.25 billion.

Other January-June results for U.S. beef exports include:

  • Despite a slight volume decline in June, first-half beef exports to Taiwan totaled 37,243 mt, up 27% from a year ago. Value climbed to $444.2 million – 59% ahead of last year’s record pace. The U.S. is the dominant supplier of chilled beef to Taiwan, capturing 76% market share.
  • First-half beef exports to the ASEAN region climbed 10% to 31,581 mt, while value soared 66% to $233.5 million. Exports to the Philippines increased 26% to 10,928 mt and climbed 92% in value to $79.1 million. Exports to Indonesia, where foot-and-mouth disease has recently impacted domestic production, dipped slightly in volume (10,621 mt, down 3%) but value still increased 56% to $75.3 million. Exports to Vietnam increased in both volume (4,627 mt, up 7%) and value ($39.3 million, up 48%).
  • In the Caribbean, a rebound in tourism and strong retail demand pushed first-half beef exports to 13,993 mt, up 35% from a year ago, while value climbed 82% to $120.1 million. Export value more than doubled to the Dominican Republic ($48.3 million, up 115%) and Jamaica ($12.8 million, up 166%), while also increasing sharply to the Bahamas ($14.9 million, up 58%).
  • Hard-hit by a prolonged, COVID-related slowdown in the foodservice sector, Europe’s demand for U.S. beef is finally rebounding. First-half exports to Europe reached 10,040 mt, up 89% from last year’s low totals, while value climbed 110% to $131.8 million. In the April-June quarter, imports under the U.S. share of the European Union’s duty-free High Quality Beef Quota were the largest since the pre-COVID total posted in early 2020. Through July, EU imports of U.S. beef under the quota totaled 7,540 mt, up about 35% from the same period last year.
  • Strong variety meat demand in Egypt and larger muscle cut shipments to the United Arab Emirates, Kuwait and Qatar pushed first-half beef exports to the Middle East 12% higher than a year ago to 36,289 mt, valued at $160.5 million (up 56%).
  • June beef export value averaged $447.45 per head of fed slaughter, up 27% from a year ago. Through June, per-head value averaged $476.98, up 33% from the first half of 2021. Exports accounted for 15.5% of total June beef production and 13.3% for muscle cuts, up significantly from 13.6% and 11.5%, respectively, in June 2021. First-half exports accounted for 15.4% of total production and 13.2% for muscle cuts, up from 14.7% and 12.5%, respectively.

Pork exports lower overall, but surging to Mexico, Colombia and DR

Pork exports to leading market Mexico remained on a record pace in June, up 3% from a year ago to 72,361 mt, while value climbed 11% to $166.4 million. This pushed first-half exports to Mexico to 469,295 mt, up 18% from a year ago, valued at $881.5 million (up 12%).

After starting the year slowly, Colombia’s demand for U.S. pork surged in the second quarter. June exports totaled 11,120 mt, up 90% from a year ago and the largest of 2022. First-half exports to Colombia were 10% above last year in volume (51,813 mt) and value was on …..

Read the detailed summary of January-June exports of U.S. beef on the USMEF website.