July Beef Exports Continue to Surge
July was another very strong month for U.S. beef and pork exports, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF), contractor to the Beef Checkoff Program. Both are on pace to set new export value records in 2011 and to eclipse the $5 billion mark for the first time ever.
Beef exports set a new value record in July of $513.1 million, on a volume of 265 million pounds. For the first seven months of the year, exports totaled 1.6 billion pounds valued at nearly $3.1 billion - an increase of 26 percent in volume and 40 percent in value over last year’s pace. July exports equated to 16.3 percent of total U.S. production with a value of $236.88 per head of fed slaughter. This compared to 12 percent and $159.34 per head last July. For the year, beef exports equated to 14.2 percent of production with a value of $198.67 per head of fed slaughter.
“July was another outstanding month for red meat exports, as we continued to expand the presence of U.S. beef and pork throughout the world,” said USMEF President and CEO Philip Seng. “This is a testament to the commitment U.S. producers and exporters have made to the international markets. Despite market access restrictions, high tariffs and other trade barriers, the investments we are making in foreign markets are paying tremendous dividends. And this success couldn’t come at a better time, as it is adding jobs to the U.S. economy and delivering much-needed returns to our farmers and ranchers. Those producers are dealing with high operating costs, adverse weather and many other significant challenges, and the export markets are clearly the best thing they have going in terms of profitability.”
Canada shines as July beef exports race to record heights
Beef exports to Canada had set a new value record in June of nearly $97 million, but that record was quickly eclipsed by a July total of $131.3 million. This remarkable performance pushed Canada into the No. 1 position for 2011 U.S. beef exports in terms of value at $595.2 million – an increase of 54 percent over last year – on a volume of 244 million pounds (up 32 percent). Despite losing its top ranking, Mexico continued its strong performance with imports valued at $78.4 million in July and a year-over-year total that is 23 percent higher at $552.7 million. Mexico remains the top volume market for U.S. beef at 324 million pounds – an increase of 6 percent over last year.
Japan was July’s second-largest market for beef export value at $86.6 million, and ranks a strong third for the year at $502.9 million – a 50 percent increase over the first seven months of 2010. In terms of volume, exports to Japan through July totaled 208 million pounds – an increase of 45 percent over last year.
July exports to South Korea slowed from the torrid pace established earlier in the year, reaching a volume of 24 million pounds valued at $50.3 million. This is about 12 percent lower in volume and 23 percent lower in value than July 2010. For the year, however, exports to Korea were still 55 percent higher in volume (216 million pounds) and 48 percent higher in value ($431.1 million) than a year ago, making Korea the third-largest market in terms of volume and fourth-largest in value.
Other highlights include:
- Exports to the Middle East were 38 percent higher than last year in volume (212 million pounds) and 49 percent higher in value ($186.3 million). Egypt accounted for about 83 percent of the volume and 62 percent of the value, though growth was also solid in the United Arab Emirates and Saudi Arabia.
- Exports to Russia were 26 percent higher in volume (91 million pounds) and 42 percent higher in value ($133.6 million). The United States has a larger tariff rate quota for beef in Russia this year, which should help exports remain strong in coming months.
- Hong Kong continues to grow exceptionally well as a market for U.S. beef, with exports increasing 60 percent in volume (65 million pounds) and nearly doubling in value to $133 million.
Led by a surge in exports to Chile, beef exports to the Central and South America region were up 53 percent in volume (33 million pounds) and 74 percent in value ($42.6 million). Peru remains a mainstay market for beef variety meat while Guatemala, Chile and Colombia are the top destinations for beef muscle cuts.
Complete export statistics through July are available online.
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Source: Cattlemen's Beef Board