March 11, 2014
US 2014 red meat exports show positive outlook
Although market conditions suggest 2014 could be a challenging year for US red meat exports, US beef, pork and lamb exports all opened the New Year on a positive note, according to statistics released by the USDA and compiled by the US Meat Export Federation (USMEF).
Beef exports continued the strong performance set in 2013, rising 13% in volume and 16% in value for the month, bolstered by double-digit growth to Mexico, Japan and Hong Kong. Pork exports rose 3% in volume and 2% in value for the month, driven by growth to Mexico, while lamb exports increased 7% in volume and 9% in value.
While price is just one of many factors that affect red meat trade, higher US pork and beef prices will create challenges for American red meat exports in the months ahead, particularly in markets where customers are more price sensitive.
"In pork, there are a number of recognised challenges on the production side as well as unresolved access issues," said Philip Seng, USMEF president and chief executive officer. "In addition, we are also seeing increased competition in the form of higher marketing budgets and favourable prices for the EU, Brazil and Canada."
Seng also noted that with US beef production expected to drop 5% this year, and already running below last year''s levels, it will be challenging to maintain export levels.
Strong performances in the key markets of Mexico, Japan and Hong Kong, plus solid growth in Central/South America (Chile is the top destination, but with triple-digit growth to Colombia) offset a drop in exports to Canada (down 26% in volume and 21% in value), partially driven by the weaker Canadian dollar, as well as declines in the value of exports to the Middle East and volume to South Korea. In addition, the re-emerging Indonesian market was the eighth-largest single-country destination by volume as exports continued the strong pace set back in October following improved market access conditions.
January exports of 97,824 tonnes were up 13%. Export value rose 16% year-over-year to US$514.5 million. Exports accounted for 13% of total beef production (muscle cuts plus variety meat), and 10% of muscle cuts alone – increases of 2% and 1%, respectively. The export value per head of fed slaughter was US$219.73, up US$14.79 from last year.
Top-performing beef export markets in January were: Mexico - 20,228 tonnes (up 23%) valued at US$93.6 million (up 27%); Japan - 15,655 tonnes (up 53%) valued at US$92.9 million (up 28%); Hong Kong - 12,811 tonnes (up 83%) valued at US$80.9 million (up 118%); Central/South America - 2,843 tonnes (up 26%) valued at US$12.4 million (up 32%); Chile - 975 tonnes (up 25%) valued at US$4.7 million (up 26%); Colombia - 369 tonnes (up 258%) valued at US$1.3 million (up 243%); Indonesia - 1,741 tonnes (up 3,314%) valued at US$4.6 million (up 879%).
Solid export growth to Mexico and the largest export volume to Japan since October 2012 helped push US pork exports up 3% in volume (191,561 tonnes) and 2% in value (US$535.6 million). Sales to the Hong Kong/China region were steady in volume versus last January, but rose 15% in value. The Central/South America region was up sharply, driven by triple-digit growth to Columbia, while both Oceania and the Association of Southeast Asian Nations (ASEAN) region posted solid increases.
Pork exports accounted for 25.5% of total pork production and 21% of muscle cuts alone, up slightly from January of 2013. Export value averaged US$54.70 per head, up US$2.12 from last year.
Top-performing pork export markets in January were: Mexico - 59,825 tonnes (up 9%) valued at US$113.2 million (up 10%); Japan - 39,069 tonnes (up 4%) valued at US$163.4 million (down 6%); Hong Kong/China - 34,766 tonnes (even) valued at US$82.7 million (up 15%); Central/South America - 11,284 tonnes (up 74%) valued at US$29.1 million (up 79%); Colombia - 4,732 tonnes (up 258%) valued at US$12.4 million (up 270%); Oceania - 7,429 tonnes (up 16%) valued at US$24.6 million (up 25%); New Zealand - 1,085 tonnes (up 63%) valued at US$3.3 million (up 62%); Caribbean - 3,138 tonnes (up 22%) valued at US$7.3 million (up 14%)
Lamb exports for January increased 7% in volume to 1,056 tonnes and 9% in value to US$2.7 million. Mexico remains the top lamb destination, purchasing 913 tonnes valued at US$1.5 million. The Caribbean, Canada and the Middle East follow in volume, although Central/South America is emerging as a market, largely driven by sales to Panama at 13 tonnes (up 550%) valued at US$96,000 (up 243%).