U.S. Meat Export Federation Economy profits strongly from exports

Exports accounted for 25.8% of total 2016 pork production and 21.5% for muscle cuts – up from 24.2% and 20.8%, respectively, in 2015. December ratios were 28% for total production and 23% for muscle cuts only – up significantly from December 2015. Export value per head slaughtered averaged $50.20 in 2016, up 4% from the previous year. The December average was $56.06, up 24%.
Beef exports increased 11% in volume (1.19 mill. mt) and 1% in value ($6.34 bn) from 2015. December exports totaled 116,847 mt, up 24% year-over-year. This was the largest monthly volume since July 2013 and the largest ever for December. Export value was $619.1 mill. in December, up 22%.
Exports accounted for 13.7% of total beef production in 2016 and 10.5% for muscle cuts – up from 13.1% and 10%, respectively, in 2015. December exports accounted for 15.6% of total December beef production and 12.1% for muscle cuts only – each up more than 2% from a year ago and the highest since 2011. Export value per head of fed slaughter averaged $262.17, down 6% from 2015, but the December average was $301.97 – up 14% and the highest in nearly two years.
Pork to Mexico sets fifth straight volume record; China/Hong Kong also record-large
A remarkable second half pushed 2016 pork export volume to Mexico to its fifth consecutive record at 730,316 mt – breaking the previous record by 2%. Export value to Mexico totaled $1.36 bn, up 7% year-over-year and the second-highest on record, trailing only the $1.56 bn mark reached in 2014.
Though down from the high levels seen earlier in the year, December pork exports to China/Hong Kong were still up 40% year-over-year in volume (47,242 mt) and 42% higher in value ($96 mill.). For the full year, exports to China/Hong set a new volume record of 544,943 mt (up 61%) and broke the $1 bn mark for the first time ($1.07 bn, up 53%).
Japan remained the leading value destination for U.S. pork, though exports fell 5% in volume (387,712 mt) and 2% in value ($1.56 bn) compared to 2015. However, chilled exports to Japan set a new record of 218,211 mt, up 8%. Led by a record performance in Central America and a fourth-quarter surge in Colombia and Chile, exports to the Central/South America region increased 11% in volume (135,954 mt) and 9% in value ($334.5 mill.).
Pork shipments increased to both Australia and New Zealand, as export volume to Oceania reached 69,963 mt (up 10%) valued at $197.3 mill. (up 3%). Exports to the Dominican Republic set another record in 2016, topping the previous year’s totals by 10% in volume (25,591 mt) and 6% in value ($56.4 mill.). Fueled by increases in China/Hong Kong and Canada and steady exports to Mexico, pork variety meat exports jumped 20% in volume to 523,199 mt and 24% in value to $999 mill. – just short of the record levels reached in 2014.
Asian markets drive strong beef export growth
Driven by strong demand for higher-value chilled cuts, beef exports achieved new value records in South Korea and Taiwan in 2016, and rebounded strongly in Japan. In Korea, December beef exports soared by 81% in volume (20,333 mt) and 88% in value ($130 mill.) from a year ago, capping a remarkable year in which exports totaled 179,280 mt (up 42%) valued at $1.06 bn – up 31% from a year ago and breaking the previous value record by more than 20%. Korea’s per capita beef consumption set a new record in 2016 of 34 pounds (carcass weight) – so the U.S. not only gained market share, but also capitalized on the market’s overall growth.Beef exports to Taiwan were also strong in December, with export value ($43.3 mill.) hitting its highest level ever. Full-year exports to Taiwan were up 25% in volume to 44,053 mt and 14% in value to $362.8 mill. 2016 exports to Japan were the largest of the post-BSE era at 258,653 mt, up 26% year-over-year. Export value totaled $1.51 bn, up 18%. Chilled beef exports to Japan totaled 112,334 mt, up 44% from 2015.
Beef exports to Mexico increased 7% year-over-year in volume to 242,373 mt, though value fell 11% to $974.9 mill. While challenged by a weak peso, Mexico remains a key destination for muscle cuts such as shoulder clods and rounds, as well as for beef variety meat. Led by strong growth in Chile and a doubling of exports to Colombia, beef exports to South America increased 6% in volume to 22,810 mt, valued at $92.7 mill. (down 2%). The region should see further growth in 2017 with the reopening of Brazil.
Exports to Central America were up 7% in volume (12,745 mt) with top market Guatemala up 1 percent and exports to Honduras nearly doubling. Export value was $71.8 mill., up 1%. Fueled by a resurgence in Indonesia and solid growth in Vietnam, beef exports to the ASEAN region were up 41% in volume (29,920 mt) and 15% in value ($156.9 mill.). Indonesia expanded access for U.S. beef in early August. Despite being closed to many products through the first seven months of the year, U.S. exports to Indonesia set a new value record of $39.4 mill.
Beef variety meat exports increased 10% in volume (341,433 mt) and 4% in value ($902.2 mill.) in 2016. Liver exports increased 12% to 81,727 and reached a broader range of markets. While liver exports to Egypt – the largest destination for U.S. livers – increased 4%, further growth was achieved in Central and South America and with the reopening of South Africa to U.S. beef.