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U.S. beef exports remained on a record-shattering value pace in October, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). October pork exports trended seasonally higher compared to recent months but were still below the results posted in October 2017. Lamb export volume in October more than doubled year-over-year, while value increased nearly 50 percent.

October beef exports totaled 117,838 metric tons (mt), up 6 percent from a year ago, valued at $727.4 million – up 10 percent and the second-highest monthly total on record. For January through October, beef exports totaled 1.13 million mt, up 9 percent year-over-year, while value was up 17 percent to $6.92 billion. For beef muscle cuts only, exports increased 12 percent in volume (867,714 mt) and 19 percent in value ($6.19 billion).

Exports accounted for 13 percent of total beef production in October, which was steady with last year, and 11.6 percent for muscle cuts only (down slightly). For January through October, exports accounted for 13.5 percent of total production and 11.1 percent for muscle cuts – up from 12.8 percent and 10.2 percent, respectively, last year. Beef export value equated to $317.53 per head of fed slaughter in October, up 5 percent from a year ago. For January through October, the per-head average was up 15 percent to $320.50.

“Demand for U.S. beef continues to climb in nearly every region of the world, with annual records already falling in some markets,” said Dan Halstrom, USMEF president and CEO. “Per-head export value will also easily set a new record in 2018, which illustrates the strong returns exports are delivering for cattle producers and for the entire supply chain.”

October pork export volume was 207,725 mt, the largest since May but still 2 percent lower year-over-year, reflecting smaller variety meat exports. Export value ($536.5 million) was also the largest since May but still down 5 percent from a year ago. For January through October, pork exports were 1 percent above last year’s record pace at 2.02 million mt, while value was also up 1 percent to $5.33 billion. For pork muscle cuts only, January-October exports increased 5 percent from a year ago in volume (1.63 million mt), valued at $4.43 billion (up 2 percent).

October exports accounted for 23.6 percent of total pork production, down from 25.4 percent a year ago. For muscle cuts only, the percentage exported was 20.7 percent – down from 21.6 percent in October 2017. For January through October, pork exports accounted for 25.8 percent of total production, down from 26.4 percent last year, but the percentage of muscle cuts exported increased from 22 to 22.5 percent. Export value per head slaughtered was down 10 percent from a year ago in October to $46.07. The January-October average was $51.74, down 2 percent.

“Despite some very significant obstacles, global demand dynamics for U.S. pork remain strong,” Halstrom said. “We are hopeful that the events of the past week – the signing of the U.S.-Mexico-Canada Agreement and the return of trade negotiations between the U.S. and China – represent progress toward elimination of retaliatory duties imposed by key trading partners. If we can put that situation behind us, U.S. pork is well-positioned to regain the momentum displayed early in the year.”

Halstrom added that upcoming trade negotiations with Japan are critical for the U.S. pork and beef industries, as all major competitors in the Japanese market will soon benefit from significant tariff reductions. USMEF, along with producers, exporters and other industry organizations submitted comments to the Office of the U.S. Trade Representative (USTR) underscoring the importance and urgency of these negotiations and will convey these points again in USTR’s Dec. 10 public hearing.

New value records for U.S. beef in Korea, Taiwan, the Philippines

Beef exports to South Korea, which had already set a new annual value record through September, remained on a torrid pace as October exports reached 20,171 mt (up 17 percent from a year ago) valued at $153.1 million (up 25 percent). January-October exports were up 35 percent in volume (200,666 mt) and 47 percent in value ($1.44 billion). These results included a 21 percent increase in chilled beef exports to 44,440 mt, valued at $431 million (up 31 percent). While Korea’s imports from Australia and New Zealand have also edged higher in 2018, U.S. beef’s market share has increased sharply, jumping from 49 to 53 percent.

October beef exports to leading market Japan were up 12 percent from a year ago in volume (26,954 mt) and 13 percent higher in value ($166.8 million). For January through October, exports to Japan were up 7 percent from a year ago in volume (279,825 mt) while value increased 10 percent to $1.76 billion. Chilled beef exports to Japan were down 1 percent to 123,712 mt, but value increased 8 percent to $990 million.

For January through October, other highlights for U.S. beef exports include:

  • Beef exports to Taiwan were up 34 percent from a year ago in volume (49,135 mt), while value reached $455.3 million – up 36 percent and already easily surpassing last year’s annual record of $409.7 million. Chilled exports to Taiwan were up 30 percent in volume (19,878 mt) and 35 percent in value ($249 million), as the United States captured more than 75 percent of Taiwan’s chilled beef market – the highest market share of any Asian destination.
  • Exports to the Philippines soared 29 percent in volume to 14,751 mt and reached $72.4 million in value – up 35 percent and setting a new annual record. Solid growth in Vietnam also helped push beef exports to the ASEAN region 14 percent ahead of last year’s pace in volume (39,719 mt) and 26 percent higher in value ($218.1 million).
  • Exports to Mexico were up 1 percent from a year ago in volume (199,003 mt) and 8 percent higher in value ($879.2 million). Beef muscle cut exports to Mexico have shown particularly strong momentum in 2018, increasing 8 percent in volume (118,177 mt) and 11 percent in value ($691.6 million).
  • Although October volume trended lower, January-October exports to China/Hong Kong were still 4 percent ahead of last year’s pace in volume (102,545 mt) and 24 percent higher in value ($823.5 million). This included exports to China of 5,677 mt valued at $48.6 million.
  • Growth in the Dominican Republic, Jamaica and the Bahamas contributed to a 9 percent increase in the Caribbean region as exports reached 21,455 mt. Value was up 4 percent to $135.4 million.
  • Led by strong growth in Costa Rica, Guatemala, Panama, El Salvador and Nicaragua, beef exports to Central America increased 18 percent year-over-year in volume (11,923 mt) and 14 percent in value ($64.6 million).

New record for U.S. pork in Korea; growth in Japan, ASEAN also bolster October exports

Pork exports to South Korea continued to gain momentum in October, increasing 27 percent from a year ago in volume (19,588 mt) and 17 percent in value ($49.2 million). January-October exports to Korea increased 41 percent in volume (191,610 mt) and 44 percent in value ($538.4 million) – already topping the annual records set in 2011. Even as imports from all main suppliers have expanded this year, U.S. share of Korea’s pork imports has increased significantly, rising from 36 to 39 percent.

October pork exports to leading value market Japan totaled 35,134 mt, up 8 percent from a year ago, while export value climbed 9 percent to $146.6 million. This pushed January-October exports 2 percent ahead of last year’s pace in volume (330,480 mt) and 3 percent higher in value ($1.36 billion). This included a slight decrease in chilled pork volume (176,118 mt) while value was up 2 percent to $849 million. U.S. share of Japan’s pork imports held close to 35 percent, down slightly from last year. But Japan imported a record volume of ground seasoned pork from the European Union in October and U.S. share in that category has dropped from 71 to 65 percent in 2018. Unfortunately this trend is likely to continue with upcoming implementation of the Japan-EU Economic Partnership Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which will reduce tariffs on all pork and phase the import duty on ground seasoned pork to zero over the next six years.

Led by strong growth in the Philippines and Vietnam, October pork exports to the ASEAN region increased 91 percent in volume (9,009 mt) and 59 percent in value ($22 million). January-October exports increased 46 percent in volume (58,415 mt) and 33 percent in value ($145.5 million). This was fueled in part by a surge in pork variety meat exports to the region, which more than doubled in both volume (24,090 mt, up 149 percent) and value ($39 million, up 126 percent).

Other January-October results for U.S. pork exports include:

  • Pork exports to South America, led by strong growth in Colombia and Peru and a rebound in exports to Chile, reached 106,444 mt – up 25 percent and already surpassing last year’s annual record. Export value was up 19 percent to $259.9 million.
  • Although October results slowed from a year ago, January-October exports to Central America still increased 17 percent in volume (66,428 mt) and 13 percent in value ($156.6 million). Exports increased to leading markets Honduras and Guatemala and were sharply higher to Panama, El Salvador, Nicaragua and Costa Rica.
  • Exports to the Dominican Republic have already exceeded annual records in both volume (36,022 mt, up 36 percent) and value ($78.4 million, up 29 percent).
  • Exports to Australia were up 10 percent to 61,994 mt, with value climbing 8 percent to $178.8 million. Australia is a critical market for U.S. hams, especially with retaliatory duties in place in Mexico and China.
  • Despite a fifth straight month in which pork shipments were below year-ago levels, exports to leading volume market Mexico were still steady with last year’s record pace at 656,284 mt. But export value, pressured by the retaliatory duties first imposed in June, declined by 9 percent to $1.12 billion.
  • Exports to China/Hong Kong declined 27 percent from a year ago to 302,151 mt, with value dropping 16 percent to $730 million. China/Hong Kong is the largest destination for pork variety meat exports, which were down 28 percent in volume (194,472 mt) and 15 percent in value ($512.4 million).

Lamb exports solid in October

October exports of U.S. lamb more than doubled from a year ago to 1,161 mt (up 107 percent). Export value was also strong, climbing 48 percent to $1.96 million. Lamb muscle cut exports were 207 mt in October, up 20 percent from a year ago, valued at $1.13 million (up 27 percent).

Through the first 10 months of the year, lamb exports were 69 percent ahead of last year’s pace in volume (10,371 mt) and 19 percent higher in value ($19 million). While the increase is mainly attributable to stronger variety meat demand in Mexico, muscle cut exports were sharply higher to the Bahamas, the Dominican Republic, the United Arab Emirates, Taiwan and the Philippines.

Complete January-October export results for U.S. beef, pork and lamb are available from USMEF’s statistics web page.

Monthly charts for U.S. pork and beef exports are also available online.

NOTES:

  • Export statistics refer to both muscle cuts and variety meat, unless otherwise noted.
  • One metric ton (mt) = 2,204.622 pounds.
  • U.S. pork currently faces retaliatory duties in China and Mexico. China’s duty rate on frozen pork muscle cuts and variety meat increased from 12 to 37 percent in April and from 37 to 62 percent in July. Mexico’s duty rate on pork muscle cuts increased from zero to 10 percent in June and jumped to 20 percent in July. Beginning in June, Mexico also imposed a 15 percent duty on sausages and a 20 percent duty on some prepared hams.
  • U.S. beef faces retaliatory duties in China and Canada. China’s duty rate on beef muscle cuts and variety meats increased from 12 to 37 percent in July. Canada’s 10 percent duty, which also took effect in July, applies to HS 160250 cooked/prepared beef products.

 

On Nov. 28, the U.S. Meat Export Federation (USMEF) launched U.S. lamb’s return to the Japanese market with an educational seminar and tasting event that drew more than 200 chefs, importers, purveyors, trade media and other key food industry professionals to The Strings hotel in Tokyo.

Following the detection of bovine spongiform encephalopathy (BSE) in the United States in December 2003, Japan was closed to U.S. lamb for nearly 15 years before reopening in July of this year. The USMEF event was designed to showcase the unique flavor profile and other positive attributes of U.S. lamb, introduce menu concepts featuring a variety of lamb cuts and connect suppliers with prospective customers.

“The turnout at the seminar was extremely impressive, and the enthusiasm was even more so,” said Greg Ahart, vice president of sales for Superior Farms. Ahart also serves on the American Lamb Board and the USMEF Executive Committee. “After a 15-year absence from the marketplace, seeing the amount of excitement and interest that was present in the room – both from the educational side, as well as when we proceeded to the presentation of products and the tasting – this event was truly something to be part of. I was completely blown away by the volume and genuineness of the interest expressed.”

USMEF President and CEO Dan Halstrom said U.S. lamb now has a long-awaited opportunity to capitalize on Japan’s strong demand for high-quality red meat products.

“The seminar and tasting confirmed that there is a lot of enthusiasm for the reentry of U.S. lamb into Japan,” Halstrom said. “We are in the midst of a ‘niku boom’ (meat boom) in Japan and there are many developing and emerging concepts, especially in the foodservice sector, for which high-quality U.S. lamb is a natural option.”

Ahart noted that the strong reputation and following U.S. pork and beef have established in Japan will provide positive momentum for U.S. lamb.

“The credibility that U.S. pork and beef have in this marketplace is very beneficial as we look at reintroducing lamb,” he explained. “Some of the more senior buyers in Japan have experience with U.S. lamb from before the market closure. But for the younger crowd at this event, which doesn’t have that historical knowledge, the reputation of the other two high-quality proteins really helps generate interest in American lamb.”

USMEF-Japan Director Takemichi Yamashoji also emphasized the need to attract younger customers, who will be a major focus of future USMEF tastings and promotions.

“There is an entire generation of Japanese consumers who have not tasted U.S. lamb,” he said. “USMEF wants to reach younger Japanese consumers and make them regular customers, so that U.S. lamb will be top-of-mind when they go out for fine dining.”

In addition to dishes that will be featured at high-end hotels and restaurants, Ahart added that the seminar was also an excellent venue for showcasing other lamb cuts that could gain traction in Japan.

“Lamb shanks and Denver ribs, which are comparable to short ribs, are examples of items that will have some applicability and interest in Japan as we build on the enthusiasm from the seminar,” Ahart said.

Japan’s imports of lamb and sheep meat are trending higher. Through October, imports in 2018 totaled 21,151 metric tons (up 11 percent from a year ago) valued at $171.2 million (up 20 percent and already a full-year record). Australian lamb currently holds about 60 percent market share, with New Zealand lamb capturing nearly 40 percent. Lamb and sheep meat enter Japan at zero duty.

 

Dan Halstrom – CEO and President  talks about latest export numbers…

 

Dan Halstrom – CEO and President talks on issues of trade…

 

USMEF Chair Elect Kevin Jones talks on tariffs

http://krvnam.streamon.fm/listen-pl-5462

 

USMEF Chair Elect Kevin Jones talks on beef pressure & tariffs

http://krvnam.streamon.fm/listen-pl-5463

 

USMEF Joe Schuele. Vice President, Communications gives a wrap up to the meeting in CA…

http://krvnam.streamon.fm/listen-pl-5464

 

USMEF Joe Schuele. Vice President, Communications on trade between Brazil & Russia…

http://krvnam.streamon.fm/listen-pl-5465

 

 

 

 

 

U.S. beef exports remained very strong in September while pork exports continued to be impacted by retaliatory duties in China and Mexico, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports cooled from the record results posted in August, but were still significantly higher year-over-year. Pork muscle cut exports improved over last September’s volume, but were offset by sharply lower shipments of pork variety meat.

September beef exports totaled 110,160 metric tons (mt), up 6 percent from a year ago, valued at $687.1 million – up 11 percent. For January through September, beef exports were just over 1 million mt, up 9 percent from a year ago, while value surged 18 percent to $6.2 billion. For beef muscle cuts only, the year-over-year increases were even more impressive, jumping 13 percent in volume (777,740 mt) and 20 percent in value ($5.54 billion).

Exports accounted for 13.7 percent of total beef production in September and 11.4 percent for muscle cuts only, up from 12.5 percent and 10.4 percent, respectively, a year ago. For the first three quarters of 2018, exports accounted for 13.5 percent of total production (up from 12.8 percent) and 11.1 percent for muscle cuts – up one full percentage point from last year. Beef export value equated to $334.63 per head of fed slaughter in September and $320.85 for January through September, each up 16 percent from a year ago.

September pork export volume was down 2 percent from a year ago to 179,423 mt, while export value fell 7 percent to $470.2 million. Pork muscle cuts were 2 percent higher than a year ago at 146,542 mt, but value still declined 3 percent to $397.6 million. September variety meat exports dropped significantly in both volume (32,881 mt, down 18 percent) and value ($72.6 million, down 21 percent). For January through September, combined pork and pork variety meat exports were 1 percent above last year’s record pace at 1.81 million mt and 2 percent higher in value at $4.79 billion. For pork muscle cuts only, exports increased 6 percent from a year ago in volume (1.46 million mt), valued at just under $4 billion (up 3 percent).

September exports accounted for 24.8 percent of total pork production, up from 23.6 percent a year ago. For muscle cuts only, the percentage exported was 21.8 percent – up two full percentage points from last September. For January through September, pork exports accounted for 26.1 percent of total production, down from 26.5 percent last year, but the percentage of muscle cuts exported increased from 22.1 to 22.7 percent. Export value per head slaughtered was down 1 percent from a year ago in September ($48.72) and for January through September ($52.46).

“With a full quarter still to be reported, beef export value records are already being surpassed in some markets and global value is on track for $8 billion by year’s end,” said USMEF President and CEO Dan Halstrom. “Pork exports have also held up relatively well, but unfortunately the obstacles U.S. pork faces in China and Mexico are putting a lot of pressure on export value.”

New value record in Korea tops beef export highlights

South Korea has been the growth pacesetter for U.S. beef exports in 2018, and September was no exception. Exports to Korea were up 22 percent from a year ago in volume (19,116 mt) and were 29 percent higher in value ($143.1 million). January-September exports reached 180,495 mt, up 37 percent from a year ago, while export value soared 51 percent to $1.29 billion, already breaking last year’s full-year value record. These results included a 28 percent increase in chilled beef exports to 40,372 mt, valued at $391 million (up 38 percent). U.S. share of Korea’s total beef imports has increased sharply this year, from 44.7 to 48.7 percent, as U.S. beef underpins Korea’s growing beef consumption.

September beef exports to leading market Japan were up 4 percent from a year ago in both volume (28,086 mt) and value ($172.3 million). For the first three quarters of 2018, exports to Japan were up 7 percent from a year ago in volume (252,871 mt) while value increased 10 percent to $1.59 billion. Chilled beef exports to Japan were down 1 percent to 111,908 mt, but value still climbed 7 percent to $895 million. On a value basis, the U.S. is the top supplier to Japan with 46.8 percent of imports, up slightly from the first three quarters of 2017. But on a volume basis, U.S. beef accounted for just under 42 percent of total imports, down from 43 percent in the same period last year and trailing Australia’s 48.6 percent share. With the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) set to enter into force Dec. 30, the tariff advantage enjoyed by Australian beef will be extended to all of U.S. beef’s major competitors in Japan with another duty reduction on April 1, the start of Japan’s fiscal year.

For January through September, other highlights for U.S. beef exports include:

  • Beef exports to Taiwan were up 32 percent from a year ago in volume (43,539 mt), while value reached $403.8 million – up 36 percent and just short of last year’s annual record of $409.7 million. Chilled exports to Taiwan were up 29 percent in volume (17,523 mt) and 36 percent in value ($221 million), as the United States captured 75 percent of Taiwan’s chilled beef market – the highest market share of any Asian destination.
  • Exports to Mexico were up 1 percent from a year ago in volume (177,906 mt) and 8 percent higher in value ($783.1 million). With a strong fourth quarter, exports to Mexico should top $1 billion for the first time since 2015.
  • After slowing in the summer months, beef exports to China/Hong Kong rebounded in September (10,076 mt valued at $82 million). This pushed January-September results 6 percent higher than a year ago in volume (89,660 mt) and 28 percent higher in value ($720.8 million). This included exports to China of 5,114 mt valued at $44.2 million.
  • A strong performance in the Philippines and solid growth in Vietnam pushed beef exports to the ASEAN region 13 percent ahead of last year’s pace in volume (33,924 mt) and 25 percent higher in value ($186.6 million).
  • Strong September results pushed exports to South Africa 8 percent higher year-over-year in volume (11,508 mt), while value jumped 28 percent to $11.7 million. Exports to Angola also increased significantly in both volume (2,643 mt, up 15 percent) and value ($3.6 million, up 45 percent). Exports to Africa (which do not include Egypt) were down 8 percent in volume (16,880 mt) but still increased 8 percent in value ($18.9 million).

Korea, Latin America continue to shine for U.S. pork

September pork exports to South Korea increased 33 percent from a year ago in volume (12,486 mt) and 30 percent in value ($33.6 million). Through September, exports increased 43 percent in volume (172,022 mt) while export value climbed 48 percent to $489.2 million – already topping the 2017 year-end total of $475 million. U.S. share of Korea’s total pork imports has increased dramatically this year, from 31 to 35 percent, even as imports also trended higher from most of Korea’s main suppliers.

Pork exports to South America continued to gain momentum in September, led by strong growth in Colombia and Peru and a rebound in exports to Chile. Through the first three quarters of the year, exports to the region were 27 percent ahead of last year’s record pace in volume (92,252 mt) and 22 percent higher in value ($227.9 million).

With steady growth in mainstay markets Honduras and Guatemala and sharply higher shipments to Panama, El Salvador, Nicaragua and Costa Rica, January-September exports to Central America increased 20 percent in volume (58,756 mt) and 17 percent in value ($138.7 million). This region is also coming off a record year in 2017.

Exports to the Dominican Republic have already broken the records set last year, with volume climbing 35 percent to 32,859 mt, valued at $71.6 million (up 29 percent).

Other January-September results for U.S. pork exports include:

  • Exports to Japan increased 2 percent year-over-year in both volume (295,346 mt) and value ($1.22 billion). This included a 2 percent decrease in chilled pork volume (155,395 mt) while value held steady at $750 million. U.S. share of Japan’s total imports has held relatively steady this year at 35 percent. But with CPTPP set to enter into force Dec. 30 and with the Japan-EU Economic Partnership Agreement also on track to be implemented in the coming months, U.S. pork will soon face significant tariff disadvantages in its leading value market.
  • Despite a fourth straight month in which shipments were below last year’s level, exports to leading volume market Mexico remained 1 percent ahead of last year’s record pace at 589,235 mt. Export value, however, has felt intense pressure from Mexico’s retaliatory duties, dropping 8 percent to $1.01 billion. Canada’s January-September exports to Mexico were up 20 percent to 93,346 mt (valued at $126.5 million, up 25 percent). EU exports also surged to Mexico in July (1,809 mt, up 747 percent) and August (2,343 mt, up 733 percent) and are expected to continue gaining momentum as Spain, Denmark and Germany take advantage of Mexico’s recently implemented duty-free pork quota.
  • Exports to China/Hong Kong declined 26 percent from a year ago to 277,779 mt, with value dropping 14 percent to $667.9 million. This region is the largest destination for U.S. pork variety meat exports, which were down 27 percent in volume (177,747 mt) and 13 percent in value ($466.2 million).
  • Led by strong growth in the Philippines and Vietnam, exports to the ASEAN region increased 40 percent in volume (49,406 mt) and 29 percent in value ($123.5 million). This was fueled by a surge in pork variety meat exports to the region, which more than doubled over last year in both volume (20,111 mt, up 147 percent) and value ($32.2 million, up 122 percent).
  • With solid growth in Australia and a steady performance in New Zealand, exports to Oceania were 11 percent ahead of last year’s pace in volume (62,360 mt) and 10 percent higher in value ($182.3 million).

Lamb variety exports climb in September, but muscle cuts still sluggish

September exports of U.S. lamb more than doubled from a year ago to 1,177 mt (up 106 percent), fueled by a sharp increase in lamb variety meat exports to Mexico. But export value was down 12 percent to $1.63 million as muscle cuts continued to struggle. Lamb muscle cut exports were just 126 mt in September, down 53 percent from a year ago and matching the lowest monthly volume of 2018.

Through the first three quarters of the year, lamb exports were 65 percent ahead of last year’s pace in volume (9,210 mt) and 16 percent higher in value ($17.1 million). The increase is mainly attributable to stronger variety meat demand in Mexico, but muscle cut exports showed promising growth in the Bahamas, the United Arab Emirates, Taiwan and the Philippines.

Complete January-September export results for U.S. beef, pork and lamb are available from USMEF’s statistics web page.

Monthly charts for U.S. pork and beef exports are also available online.

If you have questions, please contact Joe Schuele at jschuele@usmef.org or call 303-226-7309.

NOTES:

  • Export statistics refer to both muscle cuts and variety meat, unless otherwise noted.
  • One metric ton (mt) = 2,204.622 pounds.
  • U.S. pork currently faces retaliatory duties in China and Mexico. China’s duty rate on frozen pork muscle cuts and variety meat increased from 12 to 37 percent in April and from 37 to 62 percent in July. Mexico’s duty rate on pork muscle cuts increased from zero to 10 percent in June and jumped to 20 percent in July. Beginning in June, Mexico also imposed a 15 percent duty on sausages and a 20 percent duty on some prepared hams.
  • U.S. beef faces retaliatory duties in China and Canada. China’s duty rate on beef muscle cuts and variety meats increased from 12 to 37 percent in July. Canada’s 10 percent duty, which also took effect in July, applies to HS 160250 cooked/prepared beef products.