Beef Exports Lower, Exports To China Soaring
October beef exports were modestly lower compared to last year, while the export market to China is soaring, according to data released by USDA and compiled by the U.S. Meat Export Federation (UMEF).
October saw beef exports decline 0.4% at 107,591 metric tons (mt), valued at $646 million, down 0.5%. For the first 10 months of the year, beef exports were 7% lower than 2019 in volume (1.02 million mt) and 8% in value ($6.2 billion).
Beef muscle cut exports trended higher than a year ago in October, increasing 5% to 85,445 mt valued at $573.8 million (up 1%). January-October muscle cut exports were 5% below last year in volume (791,694 mt) and 8% lower in value ($5.48 billion).
It was the 6,831 mt tons of beef exported to China in October, however, that drew attention. That number, while less than one percent of the total U.S. beef export total, represents a 219% increase in volume and 187% increase in value ($177.7 million) from a year ago. USMEF said China’s demand has been especially strong since China’s foodservice sector rebounded from COVID-19 related restrictions imposed earlier in 2020.
In Hong Kong, where the foodservice recovery has seen more interruptions, January-October exports were down 5% from a year ago in volume (67,882 mt) and 9% lower in value ($541.4 million).
“While the tight labor situation continues to limit the cut and variety meat specifications available for export, red meat demand is strengthening in many critical markets,” said USMEF President and CEO Dan Halstrom. “October exports of bone-in hams, for example, were near the July record and up 50% from a year ago. This has been a volatile year, filled with shifts in consumer preferences and a lot of uncertainty for international buyers. But the U.S. industry has responded positively to these challenges and the demand dynamics for red meat are quite strong as we approach year’s end. When the gains made at retail over the past several months are combined with a stronger foodservice recovery, the prospects for export growth are very promising.”
Beef export value averaged $283.94 per head of fed slaughter in October, steady with last year. The January-October average was $293.99, down 5% from a year ago. Exports accounted for 12.7% of October beef production, down slightly from a year ago. But for muscle cuts only, the percentage increased from 10.5% a year ago to 10.8%. January-October exports accounted for 13.2% of total beef production and 11% for muscle cuts, each down about one-half percentage point from a year ago.
Exports to Japan, the largest foreign consumer of U.S. beef, recorded solid gains in October, topping last year by 10% in volume (23,353 mt) and 8% in value ($146.8 million). Through October, exports to Japan trailed last year’s pace by 2% in both volume (257,083 mt) and value ($1.61 billion).
Exports to South Korea were slightly below last October at 19,389 mt, with value down 2% to $135.4 million. January-October exports to Korea were 3% below last year’s record pace at 209,101 mt, while value was down 6% to $1.46 billion.