USMEF: February beef exports surpassed year-ago levels
Analysts at USMEF explained that although this was the lowest monthly value total since May 2017, it is the highest on record for the month of February.
The export volume recorded between January and February went up 10 percent compared to the first two months from 2017 to 206,079 mt, while the export value in the same period was $1.22 billion, up by 20 percent compared to the levels from a year ago.
Exports accounted for 13.6 percent of total beef production in February, up one full percentage point from a year ago. For muscle cuts only, the percentage exported was 10.8 percent (up from 10.1 percent last year). Through February, beef exports accounted for 13 percent of total production (up from 12.4 percent) and 10.4 percent for muscle cuts (up from 9.8 percent). February beef export value averaged $322.29 per head of fed slaughter, up 16 percent from a year ago. Through February, per-head export value averaged $306.69, up 15 percent.
Chilled beef shipments to Japan, Korea and Taiwan drive export growth; Mexico and Hong Kong also trend higher
Beef export volume to leading market Japan declined in February (20,314 mt, -15 percent year-over-year), as the frozen beef safeguard tariff (50 percent, up temporarily from 38.5 percent) contributed to a slowdown in frozen shipments. However, February export value to Japan was down only slightly at $133.4 million. Through February, total exports to Japan were 4 percent below last year’s volume pace at 44,282 mt, but still increased 9 percent in value to $282 million. This included an 18 percent increase in chilled beef exports to 22,809 mt, valued at $175 million (up 29 percent). Japan’s safeguard tariff on imports of frozen beef from the United States (and from other suppliers that do not have a free trade agreement with Japan) expired March 31, so the tariff rate for both frozen and chilled imports from the U.S. is now 38.5 percent. Japan’s tariffs on imports of Australian chilled and frozen beef edged slightly lower on April 1 and now stand at 29.3 percent and 26.9 percent, respectively, under the Japan-Australia Economic Partnership Agreement.
Beef exports to South Korea maintained a torrid pace in February, increasing 24 percent from a year ago in volume (16,193 mt) and 31 percent in value ($112.4 million). Through February, exports to Korea climbed 18 percent in volume to 33,326 mt and were 32 percent above last year’s record value pace at $234.8 million. This included chilled beef exports of 7,231 mt (up 34 percent year-over-year) valued at $68 million (up 44 percent). U.S. beef is driving new consumption trends in Korea, where retailers and foodservice operators have intensified their focus on steak cuts and are highlighting features such as dry and wet aging. USMEF continues to educate the Korean meat trade and consumers about the quality and convenience of U.S. steaks in this increasingly protein-centric market.
Through the first two months of 2018, other highlights for U.S. beef include:
Exports to Mexico, which is a critical destination for beef rounds, shoulder clods and variety meat, were 10 percent above last year’s pace in volume (39,987 mt) and 19 percent higher in value ($175 million). This included an 11 percent increase in variety meat export volume (18,720 mt) and an impressive 36 percent jump in variety meat value ($44.4 million).
Partly driven by demand for the Chinese New Year holiday, exports to Hong Kong jumped 41 percent in volume (22,807 mt) from a year ago and 61 percent in value ($168.6 million). Exports to China, which resumed in June 2017, totaled 1,187 mt valued at $11.1 million.
In Taiwan, an outstanding destination for chilled U.S. beef, exports increased 25 percent from a year ago in volume (8,106 mt) and 42 percent in value ($78.2 million). Chilled exports to Taiwan were up 53 percent in volume (3,800 mt) and 61 percent in value ($48 million) as the U.S. holds 72 percent of Taiwan’s chilled beef market.
Exceptional growth in Chile and Colombia pushed exports to South America up 68 percent year-over-year in volume (5,296 mt) and 62 percent in value ($25.2 million). Exports to Brazil, which resumed in April of last year, totaled 215 mt valued at $2 million.
Strong performances in Indonesia and Vietnam pushed beef exports to the ASEAN region 42 percent ahead of last year’s pace in volume (6,794 mt) and 34 percent higher in value ($36.7 million). The region is especially strong for beef variety meat, with exports up 74 percent in volume (2,008 mt) and 93 percent in value ($4.4 million).
Strong growth in Angola and steady volumes to South Africa pushed beef exports to Africa up 26 percent year-over-year in volume (1,981 mt) and 77 percent higher in value ($3.1 million).
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