Beef exports increased 3 percent from a year ago to 82,301 metric tons (mt), but value was down 13 percent to $438.1 million. Exports to most Asian markets, which were impacted early last year by the West Coast port labor impasse, increased in January, but these gains were largely offset by lower volumes shipped to Western Hemisphere markets and the Middle East. January exports accounted for 12 percent of total beef production and 9 percent for muscle cuts only (steady with January 2015). Export value per head of fed slaughter was $239.88, down 11 percent from a year ago.

Beef exports shows signs of rebound in Japan; Korea, Taiwan remain strong

Beef exports to Japan were the largest in six months at 16,762 mt, up 21 percent from a year ago, while export value edged 2 percent higher to $93.2 million. Exports to South Korea and Taiwan, which were bright spots for U.S. beef in 2015, were also above year-ago levels. Korea took 11,263 mt (plus 59 percent) valued at $67.2 million (plus 17 percent). Export volume to Taiwan was 2,890 mt (plus 35 percent) valued at $24.1 million (plus 3 percent). Led by a strong month in the Philippines, Vietnam and Indonesia, exports to the Association of Southeast Asian Nations (ASEAN) region increased 71 percent in volume (1,638 mt) and 9 percent in value ($9.7 million). Exports to Hong Kong were up 19 percent (10,254 mt), although value declined 16 percent ($58.4 million).

“Although it is encouraging to see beef exports to the Asian markets performing above year-ago levels, these results are a reminder of how disruptive the West Coast situation was for our industry,” said USMEF President and CEO Philip Seng. “While we still face a tariff gap in Japan compared to Australian beef, Australia’s recent slowdown in production presents an opportunity to reclaim market share – an opportunity the U.S. industry is pursuing very aggressively. U.S. beef is also capitalizing on the tight domestic supplies in Korea, making strides in both the retail and food service sectors.”

Beef exports to Mexico were severely challenged in recent months by the weakening peso, and January exports were the lowest since May 2013 at 15,247 mt (minus 25 percent). Export value dropped 35 percent to $68.8 million. Exports were also significantly lower to Canada (9,144 mt, minus 11 percent, valued at $54.8 million, minus 26 percent). Central and South America were the bright spots in the Western Hemisphere, driven by growth to Chile (913 mt, plus 30 percent) and Guatemala (404 mt, plus 13 percent). Exports to Egypt fell 11 percent in volume to 7,367 mt and 23 percent in value to $9.9 million.

Complete January export totals for U.S. beef are available from USMEF’s statistics webpage.  

—From U.S. Meat Export Federation news release