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USMEF: Record beef exports from January to October

Beef

October beef export volume increased from a year ago, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Posted on Dec 12 ,04:51

October beef exports totaled 125,466 mt, up 8% from a year ago. Export value was $929.8 million, down 3% from the large total reported in October 2021. In the first 10 months of 2022, beef export value increased 18% from last year’s record pace to reach $10.05 billion - topping $10 billion in a single year for only the second time. January-October export volume was 1.25 million mt, up 4% from a year ago.

"The October results were remarkable considering the headwinds facing U.S. beef, especially in our large Asian markets," said Dan Halstrom, President and CEO of USMEF. "Key currencies such as the Japanese yen and Korean won had sunk to their lowest levels in decades versus the U.S. dollar, which obviously affected importers’ buying power. COVID lockdowns in China were also a concerning factor, especially for buyers in the foodservice sector. But despite all that, U.S. beef still performed very well in Asia and achieved solid growth in North America and the Middle East. With some recent improvement in exchange rates, beef exports are well-positioned to surpass last year’s records."

Demand for U.S. beef in China/Hong Kong remained resilient in October, increasing significantly from a year ago despite China’s COVID-related travel restrictions and periodic lockdowns in several major metropolitan areas. China/Hong Kong was the leading destination for U.S. beef in October at 26,170 mt, up 21% from a year ago, while value climbed 19% to $240.8 million. January-October exports to the region increased 23% to 243,198 mt, while value was up 32% to $2.23 billion. China/Hong Kong is now the second highest value destination for U.S. beef, trailing only South Korea. It is the third largest volume market behind Japan and Korea, but trails Korea by less than 1,000 mt.

Despite a very weak month for the Korean won, October beef export volume to Korea still increased 10% from a year ago to 24,183 mt. But export value definitely reflected the exchange rate pinch, declining 6% to $199.4 million. Through October, exports to Korea were 4% above last year’s record pace at 244,052 mt, while value was 20% higher at $2.32 billion – just short of the full-year record ($2.38 billion) reached in 2021. While the won has strengthened to some degree since October, the economic situation in Korea remains fragile. Over the past two weeks, Korean businesses have dealt with a nationwide trucker strike that has slowed cargo movement and created significant supply chain disruptions.

October beef exports followed a similar pattern in Japan, where the yen was also in a deep slump versus the U.S. dollar. Shipments to Japan totaled 23,600 mt, up slightly from a year ago, but export value sank 18% to $163.4 million. Beef variety meat exports (mainly tongues and skirts), which had declined sharply in August and September, rebounded to 4,492 mt (up 12%) but remained lower than a year ago in value ($40.9 million, down 12%). Despite a significant decline in 2022 export volume (46,141 mt through October, down 13%), Japan is still the leading value destination for U.S. beef variety meat exports at $462 million – an increase of 19% over last year’s record pace. Through October, beef and beef variety meat exports to Japan totaled 260,318 mt, down 4% from a year ago, while export value increased 5% to just over $2 billion.

Other January-October results for U.S. beef exports include:

• October was another strong month for beef exports to the ASEAN, where shipments to the Philippines and Cambodia have already set annual records and exports to Singapore and Thailand are on a record pace. For January through October, exports to the region increased 18% from a year ago to 55,845 mt, while value soared 61% to $400 million. October exports to the Philippines reached 3,251 mt, more than five times last year’s low volume, while value quadrupled to $20.2 million. For the first 10 months of the year, exports to the Philippines increased 79% to 21,879 mt, while value climbed 132% to $147.3 million. U.S. beef faces significant tariff disadvantages in the region, making this growth even more impressive.
• Led by a rebound in Japan and growth in Mexico, Egypt, China, the ASEAN, Korea and Canada, October exports of beef variety meats totaled 25,118 mt, up 12% from a year ago, while export value increased 8% to $105 million. Through October, variety meat exports were slightly above last year in volume (250,521 mt, up 1%) while soaring 22% in value to $1.05 billion.
• Surging demand in the foodservice and hospitality sectors has driven beef exports higher to the Middle East, where January-October shipments reached 56,259 mt, up 10% from a year ago, while export value jumped 52% to $256.7 million. In Egypt, the leading destination for U.S. beef livers, a strong October pushed January-October exports slightly above last year at 40,155 mt, while value soared 38% to $78.6 million. For beef muscle cuts, export growth was driven by sharply higher shipments to the United Arab Emirates, Kuwait, Qatar, Saudi Arabia and Egypt.
• Beef exports to Canada reached 9,332 mt in October, up 20% from a year ago, while export value increased 12% to $67.4 million. Through October, exports to Canada were 3% above last year’s pace at 87,501 mt, while value increased 14% to $706.4 million.
• While beef exports to Taiwan remain on a record pace in 2022, October shipments declined year-over-year for the second consecutive month – falling 12% to 4,373 mt, while value was down 22% to $46.1 million. But through the first 10 months of the year, exports to Taiwan were still up 8% to 56,152 mt, valued at $651.6 million (up 22%).
• October beef export value equated to $424.82 per head of fed slaughter, down 3% from a year ago, but the January-October average was still up 17% to $459.50. Exports accounted for 15.3% of total October beef production and 13.1% for muscle cuts only, up from 14.3% and 12.4%, respectively, in October 2021. The January-October ratios were a record high at 15.4% and 13.2%. These were up from 15% and 12.8%, respectively, a year ago.

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