BEEF AT HOME AND ABROAD
BEEF EXPORTS CONTINUE TO SOAR from the U.S. Meat Export Federation U.S. beef exports posted another strong performance in February, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF), led by excellent value growth in key Asian and Latin American markets. Pork exports trended lower year-over-year, as larger shipments to Mexico and Japan did not offset the continued decline in demand from China/Hong Kong. Lamb exports continued to gain momentum, reaching the highest monthly value since 2014. “Rarely have we seen so many outside forces creating headwinds for U.S. meat exports and such uncertainty in the global marketplace,” said USMEF President and CEO Dan Halstrom. “Yet consumer demand for high-quality beef, pork and lamb has proven resilient, and USMEF sees opportunities for further growth in both established and emerging markets.” Beef exports totaled 108,501 metric tons (mt) in February, up 5 percent from a year ago, while value climbed 35 percent to $904.4 million. Through the first two months of the year, exports increased 9 percent to 227,567 mt, while value soared 46 percent to $1.93 billion. “Broad-based growth has become a recurring theme for U.S. beef exports, as international demand has never been higher and global supplies remain tight,” said USMEF President and CEO Dan Halstrom. “We anticipated a lift from COVID-related foodservice restrictions being eased in many destinations. This materialized late last year and in early 2022, although conditions still vary by country. While lockdowns in China and Hong Kong are certainly a setback for foodservice demand, those are the main exceptions as most countries have shifted to more of a living-with-COVID approach.” Demand for U.S. pork did not fare as well in the first two months of 2022, as logistics challenges were compounded by lower-priced offerings from competitors. Like the U.S., these suppliers are shipping significantly lower volumes to China/ Hong Kong, which has pushed more product into other
24 California Cattleman May 2022
markets at reduced prices. February pork exports were 198,539 mt, down 17 percent from a year ago, while export value fell 14 percent to $541.3 million. Through February, exports were also down 17 percent in volume (407,347 mt) and 14 percent in value ($1.1 billion). “European hog prices jumped sharply in March, climbing about 35 percent compared to February,” Halstrom explained. “While this came too late to impact our February export results, it could lead to more favorable market conditions going forward.” Beef export value approaches $2 billion after just two months Following record-large January shipments, beef export volume to leading market South Korea slowed in February but value climbed significantly. February exports to Korea totaled 19,033 mt, down 19 percent from a year ago, but value still increased 17 percent to $197.8 million. Through February, exports to Korea are off to a torrid start in 2022, climbing 8 percent in volume (48,611 mt) and already breaking the $500 million mark in value ($514.2 million, up 57 percent). Strong retail demand for U.S. beef continues and there is growing optimism for foodservice once Korea works through the current Omicron wave. Although restaurant restrictions have been minimized, consumers still opted to dine at home as COVID cases surged in February and March. February exports to Japan were down 5 percent to 23,553 mt, but value jumped 21 percent to just under $200 million. Through the first two months of the year, exports to Japan fell slightly (46,489 mt, down 1 percent) but value increased an impressive 26 percent to $381.6 million. Strong growth in variety meat exports (tongues, skirts and hanging tenders) mostly offset the slowdown in muscle cut volume rates. Through the Japan-U.S. Trade Agreement, Japan’s duty on muscle cuts notched down to 24.1 percent on April
