BEEF ABROAD

BEEF BESTS ANOTHER RECORD

WIDESPREAD GROWTH MAKES BEEF TOP $1 BILLION

from the U.S. Meat Export Federation

Despite China’s ongoing travel restrictions and periodic lockdowns in some of its largest metropolitan areas, demand for U.S. beef continues to grow. August exports to China/ Hong Kong reached a record 30,806 metric ton (mt), up 20 percent from a year ago, while value increased 17 percent to $272.3 million. Through August, exports increased 25 percent to 193,511 mt, while value was up 38 percent to $1.77 billion. China/Hong Kong is the second highest value destination for U.S. beef in 2022, trailing only South Korea, and China was the top value destination for U.S. beef muscle cut exports in August. Though not reflected in the January-August results, Hong Kong’s foodservice and hospitality sectors recently received a boost as health officials lifted onerous hotel quarantine requirements for incoming travelers.

August beef exports to Korea were slightly above last year's large volume at 24,546 mt, though export value slipped 2 percent to $213.1 million. Through August, exports to Korea were 4 percent above last year’s record pace at 197,749 mt, with value climbing 28 percent to $1.93 billion. Similar to pork, Korea recently opened a duty-free quota for imported beef. Although the quota temporarily eliminated U.S. beef’s tariff rate advantage over major competitors and helped underpin a sharp increase in imports from Australia and Canada, the move has bolstered overall beef demand amid rising inflation and sharp devaluation of the Korean won.

Following a strong July performance, beef exports to Japan took a step back in August at 25,959 mt, down 18 percent from a year ago. Export value was $189.3 million, down 19 percent. This included a sharp decline in beef variety meat exports (mainly tongues and skirts), which fell 46 percent to 3,964 mt. Through August, Japan remained the leading volume destination for U.S. beef exports at 212,198 mt, down 2 percent from a year ago, while export value increased 11 percent to $1.67 billion. Japan is the leading value destination for U.S. beef variety meat exports, and while January-August exports were down 8 percent in volume (37,545 mt), export value climbed 28 percent above last year’s record pace at $379.4 million.

Other January-August results for U.S. beef exports include:

August beef exports to Taiwan rebounded from a down month in July but were still 7 percent lower than a year ago in both volume (6,008 mt) and value ($65.8 million). Through August, exports to Taiwan remain on a record pace in 2022, climbing 15 percent to 47,865 mt, valued at $561.5 million (up 36 percent).

Led by growth in Egypt and the United Arab Emirates, August beef exports to the Middle East reached 5,691 mt, up 85 percent from a year ago, while export value more than doubled to $28.3 million (up 114 percent). For beef muscle cuts, August exports were the second highest since 2013 (after May of this year) at 2,098 mt, up 114 percent, while value increased 132 percent to $219 million. Fueled by a rebound in the foodservice and hospitality sectors, JanuaryAugust exports to the region increased 15 percent from a year ago to 46,280 mt, valued at $210.9 million (up 64 percent).

Beef exports to Canada posted a strong August performance at 9,440 mt, up 10 percent from a year ago, while export value climbed 16 percent to $77.1 million. Through August, exports to Canada were 2 percent above last year at 70,160 mt, while value increased 16 percent to $574.2 million. Tourism in Canada is likely to get a boost from removal of COVID vaccination and testing requirements for incoming travelers, which were dropped on Oct. 1.

In the ASEAN region, beef exports are on a record pace to the Philippines, Singapore, Thailand and Cambodia and year-over-year growth is robust to Vietnam. January-August exports were 8 percent higher than a year ago at 43,472 mt, while value soared 57 percent to $318 million. Export value to the Philippines more than doubled to $113.3 million (up 112 percent), while Vietnam climbed 72 percent to $56.7 million. Exports to the Philippines set a new record in August, nearly tripling last year’s totals in both volume (2,744 mt, up 196 percent) and value ($16.8 million, up 177 percent).

Beef exports to Colombia continued to climb in August, increasing 45 percent in volume (784 mt) and 13 percent in value ($3.3 million). Through August, exports to Colombia are on a record pace at 6,690 mt, up 51 percent, while value increased 64 percent to $32.2 million.

August beef export value equated to $437.98 per head of fed slaughter, down 7 percent from a year ago, but the JanuaryAugust average was still up 23 percent to $471.18. Exports accounted for 15.6 percent of total July beef production and 13.4 percent for muscle cuts only, down from 16.4 percent and 14.2 percent, respectively, in August 2021. The January-August ratios were 15.5 percent and 13.3 percent, each up about onehalf percentage point from a year ago.