U.S. pork, beef exports on record pace through June -

June pork exports totaled 181,531 metric tons (t), up 7 percent from a year ago, while export value increased 25 percent to $585.1 million. In the first half of 2014, pork export volume (1.15 million t, up 9 percent) and value ($3.4 billion, up 17 percent) achieved record highs.

Beef exports were up 5 percent in volume (106,609 t) in June and set a new monthly value record of $631.7 million (up 12 percent). First-half export value also set a new record of $3.27 billion (up 16 percent). Export volume was 585,953 t in the first half, up 8 percent from a year ago but trailing the 2011 record.

Despite intense competition, U.S. pork performing well in Asia
Pork export value per head slaughtered was a record-high $72.24 in June, up $15 from a year ago. The percentage of U.S. production exported was 25 percent for muscle cuts and 29 percent when including both muscle cuts and variety meat – up from 24 percent and 28 percent, respectively, in June 2013.

With European pork absent from the Russian market for the past six months due to an impasse over African swine fever, competition has intensified in key Asian markets. But U.S. pork still achieved first-half increases in South Korea and Japan.

“USMEF has focused for many years on establishing loyal customers in these markets and impressing upon them the quality and consistency of U.S. pork,” said USMEF President and CEO Philip Seng. “That loyalty is being tested in this increasingly competitive environment, but our results have held up very well.”

First-half highlights for U.S. pork included:

Exports to Korea continued well ahead of last year’s pace, as high domestic pork prices helped fuel imports. First-half volume was up 31 percent to 77,209 t, while value increased 48 percent to $236.3 million.
Pork muscle cut exports to Japan were up 3 percent in volume (213,653 t) and 5 percent in value ($969.3 million).
Exports to Mexico posted a very strong first half, increasing 15 percent in volume (333,072 t) and 42 percent in value ($751.6 million).
Colombia has emerged as the pacesetter for U.S. pork in the Central and South America region, with exports increasing 83 percent in volume (25,779 t) and nearly doubling in value ($69.7 million, up 95 percent). Exports to the entire region increased 12 percent in volume (59,619 t) and 21 percent in value ($160.8 million).
After a down year in 2013, exports to Australia rebounded nicely – increasing 17 percent in volume (33,149 t) and 25 percent in value ($114.3 million).

U.S. pork regained limited access to the Russian market in March after a 13-month absence, with two slaughter plants resuming shipments to Russia. Exports were large in June (9,371 t valued at $34.3 million), but have now been suspended (effective Aug. 7) due to retaliatory sanctions announced last week by the Russian government.

June beef export value nearly $300 per head
Beef export value per head of fed slaughter set another new record in June at $299.14, up $38.93 from a year ago. The ratio of U.S. production exported was 12 percent for muscle cuts and 15 percent for muscle cuts and variety meat combined – up from 11 percent and 14 percent, respectively, a year ago.

“Seeing beef export value per head approach $300 is really remarkable,” Seng explained. “Just four years ago, export value was about $150 per head and we broke $200 per head for the first time in 2011. This shows just how important the international markets are for delivering strong returns to the producer.”

First-half highlights for beef exports included:

Exports to Hong Kong increased 55 percent in volume (71,829 t) and 76 percent in value ($492.5 million). U.S. beef regained full access to Hong Kong in mid-June, adding key products such as ground beef and processed meats, which should help exports maintain a strong pace in the second half of the year.
Momentum continued in Korea, as exports increased 11 percent in volume (56,478 t) and 40 percent in value ($379.5 million). Strong demand from retail outlets and restaurants helped fuel a 50 percent increase in beef muscle cut value ($362.6 million) to Korea.
Export volume to Japan slowed slightly from a year ago (111,044 t, down 3 percent), but export value was steady at $693.6 million. Japanese import data show that U.S. beef continues to gain market share, as imports were lower from all other main suppliers.
Exports to Mexico increased 30 percent to 116,337 t, while value increased 44 percent to $545.9 million. However, USMEF is analyzing possible issues with the 2013 export data for Mexico, which may partially explain the large year-over-year increase.
Taiwan bounced back from a slow first quarter to post first-half increases in both volume (16,127 t, up 3 percent) and value ($132.8, up 7 percent).
Growth continued in the Central and South America region, with exports increasing 5 percent in volume (20,293 t) and 20 percent in value ($84.8 million). Peru is still the largest volume market in the region at 6,965 t, while Chile leads in value at $33.6 million.

Lamb export value higher in June, but down in first half
U.S. lamb export value achieved a modest increase in June ($2.6 million, up 2 percent), despite a decline in volume (986 t, down 30 percent). For the first half of the year, lamb exports were lower in both volume (5,461 t, down 25 percent) and value ($13.8 million, down 12 percent). The decline was mostly attributable to lower exports to Canada, which were down sharply. Panama was a bright spot in the first half, with exports totaling 38 t (up 245 percent) valued at $273,000 (up 133 percent).