July exports of U.S. beef climbed 6% year-over-year in value while volume was steady, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Although restrictions related to a finding of pseudorabies virus (PRV) were removed in mid-to-late July, pork exports – especially pork variety meats – were still significantly impacted, which contributed to July results trending lower than a year ago.
Beef exports totaled 89,139 metric tons (mt), steady with last July, while value was 6% higher at $796.7 million. The value increase was driven primarily by another outstanding month for Taiwan, as well as strong results in Mexico, Japan, the Middle East, Colombia, the Caribbean and the ASEAN region. July shipments to China rebounded slightly from last year’s minimal volumes, but remained far below the levels seen in previous years.
For January through July, beef exports were 8% below last year’s pace at 634,788 mt, while value was down 2% to $5.53 billion. When excluding China from these results, exports increased 6% in value and were down just 1% in volume from a year ago.
“Despite significant headwinds, global demand for U.S. beef remains impressively resilient,” said USMEF President and CEO Dan Halstrom. “Technical barriers and uncertainty continue to weigh heavily on exports to China, but we are hopeful that market access will be restored soon. In the meantime, U.S. beef is capitalizing on growth opportunities in Asian and Western Hemisphere markets, as well as in the Middle East.”
Taiwan, Mexico and Japan fuel increase in July beef export value
July beef exports to Taiwan reached 5,293 mt, up 14% from a year ago, while value climbed 38% to $70.6 million – the second consecutive month that exports to Taiwan topped $70 million. For January through July, exports to Taiwan were 11% above last year’s pace at 36,147 mt, valued at $429.2 million (up 15%).
Beef exports to Mexico totaled 18,947 in July, up 19% from a year ago and the highest since March, while value increased 8% to $119.3 million. Through July, shipments to Mexico increased 2% in volume (124,418 mt) and 3% in value ($781.8 million). Mexico is the leading volume destination for beef variety meat, and USDA data show large year-over-year increases in those shipments – 76,510 mt, up 17%, with value up 29% to $228.5 million. However, USMEF anticipates a correction to this year’s data that will likely reallocate the dramatically higher beef variety meat volumes to beef muscle cuts. Adjustments are also likely to affect the reported product mix for Japan, Korea and Taiwan. Until these revisions are made, the combined beef and variety meat export data should be utilized.
In Japan, July beef exports were 4% below last year in volume at 20,104 mt, but value increased 9% to $170.8 million. For January through July, exports to Japan were 7% below last year’s pace in volume (134,580 mt) but just 1% lower in value at $1.07 billion.
Other January-July results for U.S. beef exports include:
- Fueled by rebounding demand in the United Arab Emirates and Kuwait, July beef exports to the Middle East totaled 3,549 mt, up 3% from a year ago, while value surged 51% to $22.1 million. Although July exports to Saudi Arabia were steady with last year, shipments have doubled from a year ago over the past four months (to 575 mt), since Saudi Arabia agreed to remove an export verification program that limited access to the market. For January through July, due in part to challenges related to the military conflict in the region, exports to the Middle East were 13% below last year’s pace at 25,698 mt, valued at $130.2 million (down 6%).
- July beef exports to Colombia reached 450 mt, up 76% from a year ago, while value more than doubled to $4.3 million (up 112%). Through July, exports to Colombia were up 39% in volume (2,968 mt) and 91% in value ($34.9 million). With exports also increasing to Peru (4,404 mt, up 40%, valued at $27.8 million, up 38%), January-July shipments to South America were up 8% to 12,237 mt, while value climbed an impressive 27% to $105.9 million.
- Led by growth in the Dominican Republic, the Bahamas and the Netherlands Antilles, July beef exports to the Caribbean reached 2,773 mt, up 13% from a year ago, valued at $32.4 million (up 33%). January-July exports to the region were 9% higher in volume (20,253 mt) and increased 26% in value ($231.7 million).
- With beef exports to Indonesia increasing from last year’s minimal levels, shipments to the ASEAN region were valued at $25.1 million in July, up 14% from a year ago, despite a 15% decline in volume. January-July exports to the region were up 22% in volume (20,203 mt) and 41% in value ($183.6 million). In addition to the rebound in Indonesia, exports were also sharply higher to Vietnam.
- While Korea remains the leading value destination for U.S. beef, exports slowed in July, falling 21% from a year ago to 15,754 mt, while value was down 11% to $165 million. Through July, exports to Korea were down 11% to 129,897 mt, valued at $1.31 billion (down 6%). Korea’s central bank has recently taken actions aimed at curbing inflation and bolstering the won, which had fallen to historic lows versus the U.S. dollar. This should restore some buying power for Korean importers in the months ahead. Australian beef also faces a higher tariff rate in Korea through the end of this year, having exceeded the threshold established in the Korea-Australia FTA in late July. U.S. beef has zero-duty access to Korea.
- As noted above, July beef exports to China increased from the minimal levels posted a year ago but still totaled just 2,532 mt, valued at $21 million. While China renewed registrations for U.S. beef plants and cold storage facilities in May, following the summit meeting between President Trump and Chinese President Xi Jinping, many plants remain suspended and most exporters are reluctant to ship to China until clarity is achieved regarding residue testing and other potential obstacles.
- Beef export value equated to $421.07 per head of fed slaughter in July, up 14% from a year ago. The January-July average was $430.25 per head, up 7%. Exports accounted for 12.5% of total July beef production, up from 11.9% a year ago. The January-July ratio was 12.9% of total production, down from 13.3% during the same period last year.
