U.S. pork and beef exports capped a strong first quarter with excellent March results that included a new record volume for pork, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Pork exports reached 227,955 metric tons (mt) in March, up 16 percent year-over-year and topping the previous monthly high set in November 2016. Export value was $586.6 million, up 22 percent. For the first quarter, pork exports were up 17 percent in volume (627,647 mt) and 22 percent in value ($1.58 billion).
March exports accounted for 28 percent of total pork production and 23.3 percent for muscle cuts only, up from 25.4 percent and 22 percent, respectively, last year. First-quarter ratios were also significantly higher at 27.2 percent and 22.6 percent, compared to 23.9 percent and 20 percent in 2016. Export value per hog slaughtered averaged $54.93 in March, up 15 percent year-over-year, while the first-quarter average increased 18 percent to $52.42.
Beef exports totaled 105,310 mt in March, up 18 percent year-over-year, with value increasing 22 percent to $588.2 million. First-quarter beef exports were up 15 percent in volume (292,215 mt) and 19 percent in value ($1.61 billion).
March exports accounted for 12.5 percent of total beef production and just under 10 percent for muscle cuts only, each up slightly from last year. For the first quarter, the percentage of total beef production exported was down slightly from a year ago (12.4 percent vs. 12.5 percent) despite an increase for muscle cuts (9.8 percent vs. 9.4 percent). Export value per head of fed slaughter averaged $270.14 in March, up 11 percent from a year ago, while the first-quarter average increased 10 percent to $267.71 per head.
“Entering 2017 with record-large pork production and an uptick in beef slaughter, we knew this ‘wall of U.S. meat’ presented a challenge for our industry,” said USMEF President and CEO Philip Seng. “So the fact that first-quarter export volumes are higher than a year ago is not surprising, but it’s important to look beyond that - to the higher percentage of production being exported and the strong return on those exports. The U.S. is not just moving more meat internationally because we have more available. Our products are commanding solid prices and winning back market share in many key destinations, even with a strong U.S. dollar and many trade barriers still in place. But our competitors are working every day to reverse this trend, so we must aggressively expand and defend our international customer base.”
Mexico, Korea and South America fuel record volume for pork exports
The red-hot pace for U.S. pork exports to Mexico continued in March, with volume up 34 percent year-over-year to 68,866 mt, and value increasing 47 percent to $127.2 million. For the first quarter, exports to Mexico totaled 206,262 mt (up 29 percent) valued at $371.9 million (up 42 percent). Strong demand from Mexico is especially important for U.S. ham prices, but pork variety meat exports to Mexico also posted a strong first quarter, increasing 14 percent in volume (37,596 mt) and 38 percent in value ($58.1 million).
In leading value market Japan, March exports increased modestly in volume (37,806 mt, up 2 percent) but climbed 12 percent in value to $155.2 million - the highest since October 2014. In the first quarter, export volume to Japan was up 7 percent in volume (101,581 mt) and 13 percent in value ($411.3 million). Chilled pork exports to Japan increased 3 percent to 56,307 metric tons, while value increased 10 percent to $260 million.