U.S. beef exports post solid May results -

May beef exports were 21 percent higher in volume (109,741 metric tons) and 30 percent higher in value ($453.9 million) than a year ago. It was the second-strongest month of 2011 in terms of both volume and value, trailing only the all-time record results posted in March. Year-to-date through May, beef exports reached 509,489 metric tons valued at $2.09 billion – surpassing last year’s pace by 28 percent in volume and 44 percent in value. Exports equated to 14.8 percent of total U.S. production with a value of $205.07 per head of fed slaughter. This compares to 12.6 percent and $160.30 per head in May 2010.

After several consecutive months of remarkable results, beef exports to South Korea experienced an expected correction in May. Export volume in May (10,455 metric tons) was about even with last year while export value ($46.6 million) fell by about 8 percent. For the year, however, beef exports to Korea have still more than doubled the 2010 pace in terms of both volume (76,209 metric tons) and value ($330.6 million).

In terms of 2011 beef export value, Japan ($327.5 million) pulled nearly even with Korea for the No. 3 position behind Mexico and Canada. Export value to Japan is running 69 percent ahead of last year’s pace while export volume (59,672 metric tons) is 63 percent higher. Canada posted its best month of the year by far in May, with a total of 16,899 metric tons valued at more than $95 million. For the year, exports to Canada are up 16 percent in volume (69,224 metric tons) and 39 percent in value ($367.3 million).

Other market highlights for U.S. beef include:

* Mexico remains the leading destination for U.S. beef in terms of both volume (103,808 metric tons) and value ($392.1 million) – increases of 8 percent and 26 percent, respectively, over 2010.

* Fueled by strong growth in Egypt, exports to the Middle East region have increased 44 percent in volume (64,712 metric tons) and 60 percent in value ($125.8 million).

* Despite still being limited to boneless muscle cuts only, exports to Hong Kong have more than doubled last year’s pace in terms of both volume (23,078 metric tons) and value ($100.6 million).

* Strong growth in Peru, Guatemala and Chile pushed exports to the Central/South America region 50 percent higher in volume (10,398 metric tons) and 80 percent higher in value ($29.4 million).

In Taiwan, where a dispute over ractopamine residues has impeded growth of U.S. beef exports, May volume (13,399 metric tons) was down 5 percent compared to last year while export value was up slightly to $73.3 million.

“We continue to overcome market access challenges in many key markets and achieve strong growth in U.S. beef exports,” Seng said. “But whether it’s the 20-month age limit in Japan, product restrictions in Hong Kong and Mexico, the impasse over residues in Taiwan or the total lack of access to China – we simply have to stop leaving money on the table. Our export success in spite of those barriers tells me that the partnerships we are fortifying and the image campaigns we are conducting are working, yet I know these totals could be soaring even higher with better market access.”

As for the slower results in Korea, Seng was not alarmed.

“USMEF is still quite bullish on Korea as demand for U.S. beef is very strong,” he said. “We were exporting beef to Korea at such a strong pace that it was not really sustainable, so we anticipated a correction based on importer inventories. However, we are working closely with importers, retailers and food service outlets to ensure a strong performance in the second half of the year.”