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USDA: Beef exports again top 1 Billion dollars

Beef

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 mt, up 20% from a year ago, while value increased 17% to $272.3 million. Through August, exports increased 25% to 193,511 mt, while value was up 38% to $1.77 billion.

Posted on Oct 11 ,04:54

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% to $213.1 million. Through August, exports to Korea were 4% above last year’s record pace at 197,749 mt, with value climbing 28% 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% from a year ago. Export value was $189.3 million, down 19%. This included a sharp decline in beef variety meat exports (mainly tongues and skirts), which fell 46% to 3,964 mt. Through August, Japan remained the leading volume destination for U.S. beef exports at 212,198 mt, down 2% from a year ago, while export value increased 11% 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% in volume (37,545 mt), export value climbed 28% 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% 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% to 47,865 mt, valued at $561.5 million (up 36%).
• Led by growth in Egypt and the United Arab Emirates, August beef exports to the Middle East reached 5,691 mt, up 85% from a year ago, while export value more than doubled to $28.3 million (up 114%). For beef muscle cuts, August exports were the second highest since 2013 (after May of this year) at 2,098 mt, up 114%, while value increased 132% to $219 million. Fueled by a rebound in the foodservice and hospitality sectors, January-August exports to the region increased 15% from a year ago to 46,280 mt, valued at $210.9 million (up 64%).
• Beef exports to Canada posted a strong August performance at 9,440 mt, up 10% from a year ago, while export value climbed 16% to $77.1 million. Through August, exports to Canada were 2% above last year at 70,160 mt, while value increased 16% 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% higher than a year ago at 43,472 mt, while value soared 57% to $318 million. Export value to the Philippines more than doubled to $113.3 million (up 112%), while Vietnam climbed 72% 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%) and value ($16.8 million, up 177%).
• Beef exports to Colombia continued to climb in August, increasing 45% in volume (784 mt) and 13% in value ($3.3 million). Through August, exports to Colombia are on a record pace at 6,690 mt, up 51%, while value increased 64% to $32.2 million.
• August beef export value equated to $437.98 per head of fed slaughter, down 7% from a year ago, but the January-August average was still up 23% to $471.18. Exports accounted for 15.6% of total July beef production and 13.4% for muscle cuts only, down from 16.4% and 14.2%, respectively, in August 2021. The January-August ratios were 15.5% and 13.3%, each up about one-half percentage point from a year ago.

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