By Jennifer Dorsett
Field Editor
U.S. beef and pork exports were down in May, according to reports released by the U.S. Department of Agriculture (USDA) Economic Research Service (ERS), U.S. Department of Commerce (DOC) and U.S. Bureau of Labor Statistics (BLS).
The data, compiled by the U.S. Meat Export Federation (USMEF), reflects interruptions in slaughter and processing caused by COVID-19 as meat processors struggled to keep up with domestic demand and faced difficulties getting meat to other markets.
Beef exports dropped well below levels from the same time one year ago and recorded the lowest monthly volume in 10 years. Pork exports remained higher than one year ago but were the lowest since October 2019.
“As protective measures related to COVID-19 were being implemented, plant disruptions peaked in early May with a corresponding temporary slowdown in exports,” USMEF President and CEO Dan Halstrom said. “Unfortunately, the impact was quite severe, especially on the beef side. Exports also faced some significant economic headwinds, especially in our Western Hemisphere markets, as stay-at-home orders were implemented in key destinations and several trading partners dealt with slumping currencies.”
The recent rebound in beef and pork production will help exports regain momentum in the second half of 2020, according to USMEF. Halstrom added the global economic outlook is challenging, but he thinks export volumes will recover quickly.
“In what has been a remarkably turbulent year, consumer demand for U.S. red meat has proven very resilient,” he said. “Now that production has substantially recovered, the U.S. industry is better able to meet the needs of both domestic and international customers. While the foodservice and hospitality sectors face enormous challenges, they are on the path to recovery in some markets while retail demand remains strong. Retail sales have also been bolstered by a surge in e-commerce and innovations in home meal replacement, as convenience remains paramount.”
May beef exports were down 33 percent from 2019 to 79,280 metric tons (mt). Value fell 34 percent to $480 million.
Shipments were higher than a year ago to Hong Kong and China but trended lower in most other markets. In the first five months of 2020, beef exports fell 3 percent below last year’s pace in volume (512,596 mt) and 5 percent lower in value ($3.14 billion).
Pork exports in May totaled 243,823 mt, 12 percent higher than one year ago but down 13 percent from monthly averages for the first quarter of 2020. Export value was $620.9 million, up 9 percent year-over-year, but 16 percent below the first quarter monthly average.
As with beef, May pork exports increased year-over-year to China and Hong Kong. Taiwan and Vietnam also imported more U.S. pork, but Mexico, Japan, Canada and South Korea all bought less.
In January through May, pork exports were 30 percent ahead of last year’s pace in volume (1.35 million mt) and 37 percent higher in value ($3.53 billion).
BLS reported the agricultural export price index fell 3.5 percent over the past year, driven by lower prices for corn, vegetables, cotton, nuts and dairy products.
That’s compared to an overall U.S. export price index decline of 6 percent.
Overall, ERS data show the U.S. exported $10.3 billion worth of agricultural goods in May and imported $11.4 billion worth, a negative trade balance of just over $1 billion.
American agricultural exports ran about $55.65 billion through May, down from the $56.95 billion exported the first five months of 2019.
Click here for Texas Farm Bureau’s COVID-19 resources page.