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USMEF: Beef exports show signs of rebound

Beef

While below last year’s high volume, March beef exports were the largest since October, according to data released by USDA and compiled by USMEF.

Posted on May 10 ,00:10

Beef exports totaled 120,495 mt in March, down 5% from a year ago. Export value fell 17% to $892.6 million, but both volume and value were the highest in five months. Through the first quarter, beef exports were down 8% year-over-year to 326,494 mt, valued at $2.35 billion (down 22%). 

"U.S. beef exports faced considerable headwinds late last year and at the beginning of 2023, but the March results show some encouraging trends,” said USMEF President and CEO Dan Halstrom. “Most Asian markets showed renewed momentum in March, while exports continued to trend higher to Mexico, the Caribbean and South Africa".

Mexico continued to be a bright spot for U.S. beef exports in March, with shipments up 17% from a year ago to 17,454 mt, valued at $97.3 million (up 26%). This pushed first quarter exports to 50,509 mt, up 16% from a year ago, while value increased 17% to $283.6 million. One factor bolstering Mexico’s beef demand in 2023 is the strength of the peso, which has given Mexican customers greater purchasing power compared to buyers in several other key markets. Mexico is the largest volume destination for U.S. beef variety meat, with first quarter exports increasing 13% from a year ago to 25,533 mt, valued at $72.6 million (up 20%). Top variety meat export items to Mexico include livers, tripe, lips, hearts and tongues. First quarter shipments of beef lips were the highest since 2017 at 7,202 mt, up 38% from a year ago, valued at $16.6 million (up 35%). 

Although March beef shipments to South Korea were down slightly from a year ago, export volume was the largest in 10 months at 25,605 mt. Export value was down significantly from the enormous total posted in March 2022, but was still the highest since August at $200.5 million. For the first quarter, exports to Korea trailed last year’s record pace by 15% in volume (63,883 mt) and 36% in value ($505.3 million). 

March beef exports to China/Hong Kong were also below last year but were the largest since October at 21,211 mt. March export value was $188.5 million, down 9% from a year ago but also the highest since October. First quarter exports to China/Hong Kong were down 11% from a year ago to 55,122 mt, while value fell 18% to $477.2 million. 

Other first quarter results for U.S. beef exports include: 

• Japan is this year’s leading volume market for U.S. beef exports at 69,280 mt, down 4% from a year ago, while first quarter value fell 20% to $473.9 million. Prospects brightened for U.S. beef demand at the end of April, when Japan lifted all COVID-related restrictions for arriving travelers. This is expected to provide a significant boost for Japan’s tourism and hospitality sectors, which have been slow to recover from the pandemic. 
• Led by impressive growth in the Dominican Republic, Jamaica, the Bahamas, Netherlands Antilles, Trinidad and Tobago, Bermuda and Barbados, first quarter beef exports to the Caribbean climbed 21% from a year ago to 7,638 mt, valued at $67.1 million (up 18%). March shipments to the Dominican Republic were record-large at 1,056 mt, up 9% year-over-year, valued at $11.8 million (up 14%).  
• The Philippines continues to be a growth market for U.S. beef, with March exports climbing 24% from a year ago to 1,492 mt, valued at $9.3 million (up 3%). First quarter exports increased 15% to 3,782 mt, though value fell 12% to $22.4 million. 
• Demand for U.S. beef increased dramatically in South Africa, where first quarter exports nearly tripled from a year ago to 5,825 mt – up 184%. All but 33 mt were beef variety meat as shipments of beef livers and kidneys have rebounded following challenges in 2022. Export value to South Africa was up 206% to $6.3 million. With first quarter shipments of beef variety meats also increasing to Cote D’Ivoire, total beef exports to Africa were up 84% from a year ago to 6,816 mt, valued at $7.9 million (up 77%). 
• Beef variety meat demand also fueled first quarter growth in Peru, where variety meat exports quadrupled from a year ago to 1,024 mt, with value climbing 91% to $1.9 million.  March shipments totaled 637 mt, up significantly from the previous year’s muted volumes and the highest since September. Beef muscle cut exports to Peru also trended higher, increasing 49% in volume (488 mt) and 30% in value ($5.5 million). 
• March beef export value equated to $397.22 per head of fed slaughter, down 16% from a year ago, while the first quarter average was down 21% to $373.42. Exports accounted for 14.6% of total March beef production and 12.3% for muscle cuts only, each down about one-half percentage point from a year ago. The first quarter ratios were 14% and 11.8%, down from 14.7% and 12.5%, respectively, a year ago. 

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