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USMEF: Momentum continues for US beef exports

Beef

Exports of U.S. beef continued to build momentum in July, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Posted on Sep 10 ,00:15

July beef exports totaled 110,419 metric tons (mt), up 7% from a year ago and the second largest of 2024. Export value climbed 12% to $910.9 million, also the second highest this year. For January through July, beef export value increased 6% from a year ago to $6.13 billion, despite a 2% decline in volume (754,152 mt).

"It is very gratifying to see demand for U.S. beef trending upward in Asian markets, with Japan and Taiwan leading the way and an outstanding showing in the ASEAN region", said USMEF President and CEO Dan Halstrom. "U.S. beef has weathered severe headwinds in Asia and especially in Japan, but the outlook for the remainder of the year is encouraging. July was also another impressive month for Mexico, which continues to display excellent demand for an expanding range of U.S. beef cuts and variety meats".

Key Asian markets and Mexico fuel strong month for beef exports

Following a solid June performance, July beef exports to Japan reached 22,031 mt, up 14% from a year ago, while export value climbed 16% to $175 million. These results pushed January-July exports even with last year’s pace at 149,051 mt, while export value increased 7% to $1.15 billion. Although Japan’s economy continues to struggle, surging tourism has been a bright spot and has bolstered demand for U.S. beef in the foodservice and hospitality sectors.

While the yen has strengthened in recent weeks versus the U.S. dollar it still weighed on July exports, trading in the 160 range in the first half of the month. Japan’s real consumer incomes increased in June and July, following 27 months of declining wages in inflation-adjusted terms.  

Mexico’s demand for U.S. beef continues to expand despite the recent devaluation of the peso. July beef exports to Mexico were the largest this year at 21,081 mt, up 19% from a year ago. Export value climbed 17% to $122.5 million – the highest in nearly four years. For January through July, exports to Mexico were 14% above last year in volume (134,554 mt) and 19% higher in value ($785.3 million). This includes more than 71,000 mt of beef variety meat, up 15% from a year ago, valued at $192.7 million (up 10%). Mexico is the largest volume destination for U.S. beef variety meat and second to Japan in value.

After a slow start in 2024, beef exports to Taiwan have accelerated in recent months. July shipments totaled 6,142 mt, up 16% from a year ago, while export value soared 33% to $69.5 million. While January-July volume to Taiwan still trailed last year (36,852, down 6%), export value increased 7% to $404.2 million.

Other January-July export results for U.S. beef include:

• Led by larger shipments to the Philippines, Indonesia and Vietnam, July beef exports to the ASEAN region reached 4,466 mt, up 70% from last year’s low volume, while export value more than doubled to $37.3 million (up 125%). Although January-July exports to the region remained below last year’s pace (23,089 mt, down 3%), export value climbed 36% to $193.3 million.
• July beef shipments to leading value market South Korea totaled 17,599 mt, up slightly from a year ago, while export value increased 9% to $169.3 million. Through July, exports to Korea were up 2% in value from a year ago at $1.27 billion despite an 11% decline in volume (133,937 mt).
• Fueled by strong variety meat demand in Egypt and larger muscle cut shipments to the United Arab Emirates, Kuwait and Qatar, July beef exports to the Middle East totaled 4,253 mt, up 13% from a year ago, while export value increased 2% to $19.6 million. Through the first seven months of 2024, beef exports to the region have rebounded impressively, increasing 28% year-over-year in both volume (32,448 mt) and value ($146.6 million).
• Although beef exports to Central America declined slightly in July (1,408 mt, down 1% from a year ago), export value increased 7% to $10.3 million. January-July exports to the region increased 6% from a year ago to 12,209 mt, valued at $88.6 million (up 12%), with shipments on a record pace to leading market Guatemala and to Panama.
• July beef exports to China/Hong Kong achieved a year-over-year increase in value ($162 million, up 5%), despite falling 3% in volume to 17,470 mt. Through July, exports to the region declined 11% from a year ago to 122,251 mt, while value fell 5% to $1.14 billion.
• Restrictions related to H5N1 findings in U.S. dairy cows continue to weigh heavily on beef exports to Colombia, which totaled just 88 mt in July. Shipments to Colombia posted a strong first quarter but have declined sharply since exports from affected states were suspended, which began in April. Through July, beef exports to Colombia fell 32% from a year ago to 2,312 mt, valued at $14.2 million (down 21%). Canada’s beef exports to Colombia have surged, reaching 1,041 mt through July, valued at $3.4 million – up from minimal levels in 2023.
• Beef export value equated to $418.43 per head of fed slaughter in July, up 4% from a year ago. The January-July average was $418.38 per head, up 6% from the first seven months of 2023. Exports accounted for 14% of total July beef production and 11.6% for muscle cuts only, each down slightly from a year ago. The January-July ratios were 14.1% of total production (down from 14.4% a year ago) and 11.8% for muscle cuts (down from 12.1%).

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