Beef export value again tops $8 billion

Beef export value per head of fed slaughter was $321.21 in December, down 9% from a year ago. The 2019 average was $309.75, down 4%. December exports accounted for 14.3% of total beef production and 11.6% for muscle cuts only, down from 15.5% and 12.6%, respectively, a year ago. 2019 exports accounted for 14.1% of total beef production and 11.4% for muscle cuts, down from the previous year's record-high percentages (14.6% and 12.1%, respectively).

New beef export records for Korea and Taiwan, strong year for beef variety meat

The decline in U.S. beef exports from the record levels of 2018 was partially attributable to lower shipments to Japan, which were down 6% in both volume (311,146 MT) and value ($1.95 billion). Similar to pork, Japan's tariff rates for U.S. beef were lowered on Jan. 1 to match those of major competitors, with the rate for U.S. beef muscle cuts dropping from 38.5% to 26.6%. Another tariff rate cut will come April 1, when the Japanese fiscal year begins. December exports to Japan were slightly above year-ago levels in both volume (24,056 MT) and value ($144.6 million).

"It was gratifying to see beef exports to Japan perform so well in December, given that the first tariff rate cut was pending and set to take effect Jan. 1," observed Dan Halstrom, U.S. Meat Export Federation (USMEF) president and CEO. "Buyers in Japan have been waiting a very long time for tariff relief and have already responded enthusiastically. We look forward to solid growth in 2020 and beyond."

South Korea made a strong push to become the leading value market for U.S. beef in 2019, finishing a close second to Japan at a record $1.84 billion (up 5% from a year ago). Korea was also the second-largest volume market for U.S. beef at 255,758 MT (up 7%, also a new record). The U.S. captured a larger share of Korea's chilled beef imports in 2019 at 62%, up from 58% the previous year. U.S. beef accounted for 51.5% of Korea's total beef and beef variety meat imports and more than one-third of Korea's total beef consumption.

"U.S. beef is achieving remarkable success in Korea's traditional retail and food service sectors and is well-positioned to capitalize on growth in e-commerce, the institutional sector and other emerging sales channels," Halstrom said. "As U.S. beef moves steadily toward duty-free status in Korea, it becomes accessible and affordable for a wider range of customers whose appetite for U.S. beef continues to grow. We are seeing many new menu concepts in this dynamic market and continued excitement about U.S. beef."

Beef exports to Taiwan were record-large for the fourth consecutive year in 2019, climbing 6% from a year ago in volume (63,538 MT) and 3% in value ($567.1 million). This growth is also driven by success at food service and retail as Taiwan continues to embrace alternative cuts, and U.S. beef is underpinning overall consumption growth. The U.S. dominates Taiwan's chilled beef market, capturing approximately 75% of its chilled imports – the highest share of any Asian destination.

Other 2019 highlights for U.S. beef exports include:

In Mexico, the third-largest market for U.S. beef behind Japan and Korea, export value increased 5% from a year ago to $1.1 billion despite a 1% decline in volume (236,707 MT). This was largely due to strong demand for beef variety meat, especially tripe. Variety meat exports to Mexico increased 4% year over year in volume (100,645 MT) and surged 21% in value to $276.9 million. This included $111.7 million in tripe exports, up 30% from a year ago.
The largest decline in U.S. beef exports in 2019 was to China/Hong Kong (103,220 MT, down 21%, with value down 19% to $830 million). Retaliatory duties and other restrictions limited U.S. exports to China, but the phase one trade agreement includes significant breakthroughs in market access that should allow a much larger share of U.S. beef production to be eligible for China. Although China's beef demand has recently slowed, its overall beef imports reached a staggering $8.4 billion in 2019, a 70% increase over the 2018 record.
Led by strong demand in Indonesia, beef exports to the Association of Southeast Asian Nations (ASEAN) region increased 23% from a year ago in volume (60,790 MT) and were 8% higher in value ($295.5 million). Exports to Indonesia reached record heights, climbing 67% from a year ago in volume (23,591 MT) and 37% higher in value ($85.1 million). This included a near doubling of variety meat volume (to 12,688 MT) along with substantial growth in muscle cuts.
Despite a slowdown in December, exports to the Dominican Republic easily surpassed the previous year's record in both volume (8,034 MT, up 18%) and value ($65.8 million, up 13%).
Fueled by outstanding demand in Panama, exports to Central America increased 3% from a year ago in volume (15,156 MT) and 7% in value ($86 million). Exports to Panama surged 33% to 2,278 MT, valued at $14.7 million (up 30%).
Mexico was one of several markets driving strong demand for U.S. beef variety meat in 2019. Global variety exports increased 4% from a year ago in volume (322,529 MT) and 9% in value ($972.9 million). Exports to Japan, which largely consist of tongues and skirts, totaled 62,948 MT, up 19% from a year ago, valued at $387 million (up 13%). Prospects for further growth are very strong in Japan, with beef from cattle of all ages now eligible and lower tariff rates under the U.S.-Japan trade agreement. (Japan's tariff rate for U.S. tongues will phase to zero by 2028 and for other variety meat by 2030.) Egypt, the largest destination for U.S. beef livers, saw a 3% increase in variety meat volume (63,449 MT), while export value climbed 15% to $73.7 million. Beef variety meat exports also posted substantial year-over-year gains in Indonesia, the Dominican Republic, Chile, Angola, Gabon, Trinidad and Tobago, Mozambique and Nicaragua.

Complete January-November export results for U.S. beef, pork and lamb are available from USMEF's statistics webpage.