June export data, released by USDA and compiled by the U.S. Meat Export Federation (USMEF), reflected a challenging first half of 2015 for U.S. beef exports.
Beef export volume in June was down 8 percent from a year ago to 213.2 million pounds, while export value fell 9 percent to $578.9 million. This was the second consecutive month that export value fell below last year’s level, resulting in first-half value being steady with 2014’s pace at $3.26 billion. First-half volume was down 10 percent to 1.16 billion pounds.
“We were aware that exports would be facing obstacles in 2015, and that keeping pace with last year’s record performance would be difficult,” said Philip Seng, USMEF president and CEO. “The first-quarter slump was partially due to the West Coast port labor impasse, as well as intense competition from countries that continue to recognize opportunities in several markets. We were expecting to see a stronger rebound in the second quarter–and that did not materialize.”
Seng added that, while marketing budgets remain flat, competitors are beefing up efforts to capture larger shares of the red meat market. Competition continues to be a major factor, along with a strong U.S. dollar that is providing a price advantage for several competitors with slumping currencies.
Australian beef production was expected to ramp down in 2015 as the industry entered herd-rebuilding mode after several years of poor grazing conditions. But with disappointing rainfall in Australia and attractive slaughter cattle prices, beef production and exports remained record-large through the first half of the year–though some slowdown was seen in July.