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Dan Halstrom, USMEF: Strong US Beef exports in Asian markets

Beef

COVID-19 related obstacles continue to negatively impact demand for U.S. beef in several key markets, especially Mexico, Central America and the Caribbean. Some Asian markets also recently re-imposed social distancing measures, but retail and takeout demand in these markets tends to offset more of the losses in sit-down dining.

Posted on Nov 11 ,06:38

"Although restaurant traffic and foodservice activity are not back to normal in most Asian markets, USMEF is very encouraged by the recovery in Asia and this was especially evident in the strong August and September exports of U.S. beef to South Korea, Taiwan and China,” President and CEO of USMEF Dan Halstrom said. “As we close out the year, U.S. beef has a great opportunity to capture greater market share in Asia due to tightening supplies from Australia. While it will require more time, we also expect U.S. beef to regain momentum in regions where beef demand depends more heavily on travel and tourism, and where e-commerce channels are not as well-developed."

Following a record performance in August, beef exports to Korea remained strong in September at 21,450 mt, up slightly from a year ago, though value slipped 7% to $140.7 million. Through September, exports to Korea trailed last year’s record pace by 3% in volume (189,712 mt) and 6% in value ($1.32 billion). Korea’s imports of chilled U.S. beef were on a record pace through September, increasing 15% from a year ago to 47,370 mt, with market share climbing to 64%.

Also coming off a record-large month, September exports to Taiwan were up 13% from a year ago to 5,756 mt, valued at $49.4 million (up 14%). These results pushed January-September exports 1% ahead of last year’s record pace at 48,285 mt, valued at $413.6 million (down 3%).

September beef exports to leading market Japan were up slightly from a year ago at 24,160 mt, though value fell 4% to $142.5 million. Through September, exports to Japan were 3% below last year in both volume (233,730 mt) and value ($1.47 billion). However, U.S. share of Japan’s imports has increased from 40.6% to 43.7% as Japan is importing less from Australia and Canada while imports of certain U.S. products, including short plate and tongues, exceed last year.

Other January-September highlights for U.S. beef include:

• Beef exports to China set another record in September at 4,730 mt valued at $32.3 million, more than tripling last year’s totals. January-September exports to China were 17,878 mt (up 160% from a year ago) valued at $129.6 million (up 136%). This growth helped push exports to the China/Hong Kong region 11% above last year at 76,493 mt, with value up 5% at $604.8 million. Australia’s grain-fed exports to China totaled 51,745 mt through September, down 1% from last year, while grass-fed volume fell by 30% to 104,100 mt on limited Australian production and strong competition from South America. USMEF projects strong demand for grain-fed U.S. beef in China even as prices have softened for grass-fed beef.
• Demand for U.S. beef continues to strengthen in Canada, where exports were 12% ahead of last year in volume (83,017 mt) and 14% higher in value ($564.9 million). Canada has been a bright spot for U.S. beef variety meat, with exports climbing 21% to 6,803 mt valued at $14.8 million (up 40%).
• Sub-Saharan Africa has also emerged as a strong destination for U.S. beef variety meat, with exports increasing 62% from a year ago in volume (21,476 mt) and 58% in value ($16.1 million), led by growth in South Africa, Cote d’Ivoire, Gabon and Angola.

Strong demand for U.S. beef livers helped push September exports to Peru to 1,182 mt, the highest since 2014. January-September exports to Peru were up 23% from a year ago at 7,417 mt. Value was down 20% to $15.5 million, reflecting a larger percentage of variety meat in the export mix.

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