JM Innovations



National & World Ag News Headlines
February Exports Below 2018 Levels for U.S. Pork, Beef
USAgNet - 04/19/2019

February exports of U.S. pork and beef fell below last year's levels while lamb exports trended higher, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Pork export volume was down 9% from a year ago in February to 186,745 metric tons (mt), while export value dropped 17% to $455.9 million -- the lowest monthly value total since February 2016. For January through February, pork exports were 5% below last year's pace in volume (388,580 mt) and 13% lower in value ($950 million).

Pork export value averaged $45.12 per head slaughtered in February, up slightly from January but 21% lower year-over-year. The January-February average was $44.93, down 16%. Exports accounted for 24% of total February pork production and 21% for muscle cuts only, down from 27.8% and 24%, respectively, a year ago. For January-February, the ratio of total production exported was 23.8% (down from 26.1% a year ago) and 20.6% for muscle cuts only (down from 22.7%).

February beef exports declined 6% year-over-year to 94,885 mt while value was down 3% to $581.6 million. January-February exports were 3% below last year's record pace in volume (199,651 mt) but steady in value at $1.22 billion. The volume decline is mainly due to lower exports to Hong Kong and Canada, as shipments to most other major beef markets have trended higher in 2019.

Beef export value per head of fed slaughter averaged $309.39 in February, down 4% from a year ago, while the January-February average was down 3% to $296.19. February exports accounted for 12.8% of total beef production and 10.1% for muscle cuts only, down from 13.6% and 10.8%, respectively, in February 2018. For January-February these ratios were 12.5% and 9.9%, each down one-half percentage point from the first two months of 2018.

"The stiff headwinds trade disputes have created for U.S. pork exports have certainly not subsided," said USMEF President and CEO Dan Halstrom. "USMEF is encouraged by reports of progress toward resolution of these disputes, but in the meantime missed opportunities for export growth are mounting. On the beef side there is still much to be excited about, especially with the launch of U.S.-Japan trade agreement talks. A great deal is at stake for both U.S. beef and U.S. pork in those negotiations, as exports to Japan deliver remarkable returns for the entire U.S. supply chain and it is essential that we get back on a level playing field with our competitors."

Retaliatory duties continue to pressure U.S. pork exports to Mexico, with volume through February down 13% from a year ago to 119,430 mt and export value dropping 32% to $171.3 million. The U.S. is still Mexico's primary pork supplier but Canada, Chile and the European Union have all gained market share in 2019.

Demand for imported pork may now be on the upswing in China/Hong Kong due to African swine fever (ASF) as buyers prepare for a looming pork shortage, but China's retaliatory duties make it difficult for the U.S. industry to capitalize. The duty rate on U.S. pork is 62%, compared to 12% for other suppliers. Through February, exports to China/Hong Kong were down 22% from a year ago to 54,383 mt, with value dropping 34% to $108.2 million.

In the leading value market for U.S. pork, exports are feeling the pinch from Japan's lower duties on imports from the EU, Canada and Mexico. Through February, U.S. pork exports to Japan were down 9% from a year ago in volume (61,464 mt) and 12% lower in value ($248.7 million). Chilled pork exports to Japan were down 6% in both volume (34,685 mt) and value ($166 million).

Send this article to a friend


Other National Headlines
Grouser Products
KNT Fabrication
Copyright 2019 - USAgNet.com. All Rights Reserved.