By Jennifer Whitlock
Field Editor
Red meat exports have seen strong numbers in 2021.
In July, the U.S. beef export market was hot, hot, hot. Export value increased 45% from a year ago to $939.1 million, another new record in a year of records. Reported volumes of 122,743 metric tons (MT) are the third largest since bovine spongiform encephalopathy (BSE) was found in North America in 2004.
Overall, it’s been a strong year for beef exporters. From January to July, the U.S. Meat Export Federation (USMEF) said beef exports increased 18% year-over-year at a valuation of $5.58 billion. Compared to 2018, the best year ever for U.S. beef exports, shipments are up 17% in value and 6% in volume.
“Beef exports were really outstanding in July, especially with COVID-related challenges still impacting global foodservice, as well as persistent obstacles in shipping and logistics,” USMEF President and CEO Dan Halstrom said. “Retail demand continues to be tremendous, as evidenced by the new beef value record.”
Asian markets are underpinning values as retail sales in Japan, South Korea and Taiwan continue at a steady pace amid ongoing COVID-19 restrictions on indoor dining.
But the real heavyweight for July beef exports was China.
Beef exports to China were up 1,000% from the same time a year ago in both volume and value, at 99,022 MT and $773 million, respectively. USMEF noted the U.S. is now the primary supplier of grain-fed beef to China, and U.S. beef accounts for 5% of China’s total imports.
Hong Kong also had a strong showing in July’s data. Shipments to the area more than doubled from 2020 to 128,748 MT for a value of $1.05 billion, up 139% from last year.
Mexico, Central America and South America also have a taste for U.S. beef, with those regions increasing the pace of volume and value anywhere from 17%-53% and 57%-90%, respectively.
The value of beef exports in July equals about $425.68 per head of fed slaughter, up 52% from the same time a year ago. Exports comprised 15.4% of total July beef production and 13.2% of muscle cuts.
Pork exports exhibited steady rates, as well. While volumes were about equal to 2020 levels, value climbed 20% to $657.3 million, according to USMEF.
Mexico, Central America, Columbia and the Philippines paved the way for this growth. South Korea, Japan and China also remain committed buyers of U.S. pork.
Variety meat exports were up 54% from a year ago and 16% above July 2019. Pork variety meat export value was $116.7 million, the second highest on record and up 69% from a year ago.
The improvement in variety meat exports was welcomed by U.S. hog farmers, noted Halstrom.
“While the tight labor situation is still very much a challenge for exporters, the variety meat capture rate has certainly improved and it is great to see exports exceed pre-COVID levels,” he said. “This is especially important because China’s demand for pork variety meat remains strong and it is critical that the U.S. industry capitalizes on this opportunity.”
To view USMEF’s July market data report on red meat exports, click here.