U.S. meat exports in the billions

U.S. pork exports posted new volume and value records in 2019, reaching nearly $7 billion, according to data released by USDA and compiled by the U.S. Meat Export Federation. Exports of U.S. beef were below the previous year’s record levels, while lamb export volume was the second largest on record.

Pork exports soared to 282,145 metric tons in December, up 34% year-over-year and surpassing the previous high (set in November 2019) by 9%. Export value was $760 million, up a remarkable 44% from a year ago and breaking the previous record (also from November 2019) by 7%. These results pushed 2019 exports 10% above the previous year in volume (2.67 million metric tons) and 9% higher in value ($6.95 billion), breaking previous records for both volume (2.45 million metric tons in 2017) and value ($6.65 billion in 2014).

Pork export value per head slaughtered was $66.70 in December, nearly one-third higher than a year ago and the highest monthly average since 2014. For 2019, per-head value averaged $53.51, up 4% year-over-year. The percentage of pork production exported also set new records in December, as exports accounted for 32.1% of total pork production and 29.3% for muscle cuts only, up substantially from a year ago (26.1% and 23.6%, respectively). In 2019, exports accounted for 26.9% of total pork production, up from 25.7% and the highest since 2012. For muscle cuts only, the ratio was 23.6%, up from 22.5% in 2018.

December beef exports totaled 111,315 metric tons, down 1% from a year ago, valued at $682 million (down 3%). 2019 exports totaled 1.32 million metric tons, 2.5% below the previous year’s record volume. After increasing by more than $1 billion in 2018, beef export value eased by 3% to $8.1 billion.

Beef export value per head of fed slaughter was $321.21 in December, down 9% from a year ago. The 2019 average was $309.75, down 4%. December exports accounted for 14.3% of total beef production and 11.6% for muscle cuts only, down from 15.5% and 12.6%, respectively, a year ago. 2019 exports accounted for 14.1% of total beef production and 11.4% for muscle cuts, down from the previous year’s record-high percentages (14.6% and 12.1%, respectively).

December pork demand surges in China/Hong Kong; exports to Mexico rebound

Following a record performance in November, China/Hong Kong’s demand for U.S. pork climbed even higher in December at 110,876 metric tons—more than quadruple the year-ago volume—while value was nearly six times higher at $274.9 million. For 2019, pork exports to China/Hong Kong were up 89% to 665,665 metric tons, valued at $1.45 billion (up 71%). China/Hong Kong’s pork imports from all suppliers in 2019 reached a record 3.45 million metric tons, up 40% year-over-year, and accelerated into December after China’s hog prices peaked in November.

“Despite retaliatory duties and the other barriers U.S. pork faces in China, exports to the China/Hong Kong region closed 2019 with tremendous momentum,” said Dan Halstrom, USMEF President and CEO. “We look forward to continued success in 2020, especially if U.S.-China trade relations continue to trend in a positive direction. The coronavirus situation is certainly concerning and disruptive, but it hasn’t dampened our enthusiasm for the potential this market holds for U.S. red meat.”

Pork exports to Mexico also closed 2019 on a high note as December volume reached 66,181 metric tons, up 10% from a year ago, and export value surged 46% to $137.6 million, the highest in two years. Saddled by Mexico’s retaliatory duties for the first five months of the year, 2019 exports to Mexico were down 9% from a year ago in volume at 708,133 metric tons, but recovered to finish just 2% lower in value at $1.28 billion.

December pork exports to leading value market Japan trailed the previous year by 3% in volume at 29,323 metric tons, but value increased 3% to $121.6 million. Full-year exports to Japan were down 6% from a year ago in both volume (369,891 metric tons) and value ($1.52 billion). Much of this decline was ground seasoned pork, which fell by $86 million due to a wide tariff rate disadvantage compared to European and Canadian product. Beginning Jan. 1, Japan’s tariff rates on U.S. pork and pork products were lowered to match those imposed on major competitors, with the rate for U.S. ground seasoned pork falling from 20 to 13.3%.

New beef export records for Korea and Taiwan; strong year for beef variety meat

The decline in U.S. beef exports from the record levels of 2018 was partially attributable to lower shipments to Japan, which were down 6% in both volume (311,146 metric tons) and value ($1.95 billion). Similar to pork, Japan’s tariff rates for U.S. beef were lowered on Jan. 1 to match those of major competitors, with rate for U.S. beef muscle cuts dropping from 38.5 to 26.6%. Another tariff rate cut will come April 1, when the Japanese fiscal year begins. December exports to Japan were slightly above year-ago levels in both volume (24,056 metric tons) and value ($144.6 million).

“It was gratifying to see beef exports to Japan perform so well in December, given that the first tariff rate cut was pending and set to take effect Jan. 1,” Halstrom observed. “Buyers in Japan have been waiting a very long time for tariff relief and have already responded enthusiastically. We look forward to solid growth in 2020 and beyond.”

South Korea made a strong push to become the leading value market for U.S. beef in 2019, finishing a close second to Japan at a record $1.84 billion (up 5% from a year ago). Korea was also the second largest volume market for U.S. beef at 255,758 metric tons (up 7%, also a new record). The United States captured a larger share of Korea’s chilled beef imports in 2019 at 62%, up from 58% the previous year. U.S. beef accounted for 51.5% of Korea’s total beef and beef variety meat imports and more than one-third of Korea’s total beef consumption.

“U.S. beef is achieving remarkable success in Korea’s traditional retail and foodservice sectors and is well-positioned to capitalize on growth in e-commerce, the institutional sector and other emerging sales channels,” Halstrom said. “As U.S. beef moves steadily toward duty-free status in Korea, it becomes accessible and affordable for a wider range of customers whose appetite for U.S. beef continues to grow. We are seeing many new menu concepts in this dynamic market and continued excitement about U.S. beef.”

Beef exports to Taiwan were record-large for the fourth consecutive year in 2019, climbing 6% from a year ago in volume (63,538 metric tons) and 3% in value ($567.1 million). This growth is also driven by success at foodservice and retail as Taiwan continues to embrace alternative cuts and U.S. beef is underpinning overall consumption growth. The United States dominates Taiwan’s chilled beef market, capturing approximately 75% of its chilled imports – the highest share of any Asian destination.

Lamb export volume largest since 2011

December exports of U.S. lamb were 1,225 metric tons, up 9% from a year ago, while value jumped 24% to $2.36 million. For 2019, lamb export volume increased 22% from a year ago to 15,732 metric tons, valued at $26.1 million (up 12%). Led by strong demand in Mexico, export volume was the second highest on record behind 2011 and export value was the highest since 2014. In addition to Mexico, strong growth markets included Trinidad and Tobago, Panama, Guatemala and the Philippines.