POST Online Media Lite Edition



 

U.S. February red meat exports below last year

Christian Fernsby |
February exports of U.S. beef and pork remained below the rapid pace established in early 2020, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Article continues below



Topics: U.S.   

However, exports were consistent with USMEF’s February projections and the federation still expects 2021 beef exports to increase substantially year-over-year, while pork exports are projected to narrowly surpass the 2020 record.

Beef exports totaled 103,493 metric tons (mt) in February, down 8% from a year ago, valued at $669.5 million (down 2%). This was due mainly to a decline in variety meat exports, as beef muscle cuts were steady with last year in value at $597.9 million on a volume of 82,530 mt (down 3%).

Through February, beef exports were 5% below last year’s pace at 208,540 mt, valued at $1.32 billion (down 2%). Beef muscle cut exports were down 1% to 163,928 mt and steady in value at $1.18 billion.

February pork exports were down 12% from a year ago at 239,240 mt, valued at $629.4 million (down 13%). For muscle cuts only, exports fell by the same percentages to 203,526 mt valued at $548 million. Through February, pork exports were 11% below last year’s pace at 487,896 mt, valued at $1.27 billion (down 13%). Pork muscle cut exports were also down 11% to 411,760 mt, valued at $1.1 billion (down 14%).

Export demand has remained solid despite logistical challenges and other pandemic-related obstacles. Continued international demand, along with robust domestic business, contributed to stronger cutout values in the first quarter, which were up an average of 27% year-over-year for pork (nearly $90/cwt) and 4% for Choice beef ($224/cwt).

Strong momentum for beef exports to China, Korea; safeguard impacts Japan

February beef exports equated to $345.37 per head of fed slaughter, up 1% from a year ago. The January-February average was $327.92, up 2%. February exports accounted for 14.4% of total beef production and 12.3% for muscle cuts, down from 15.3% and 12.4%, respectively, last year. The January-February ratios were 13.8% of total production (down from 14.1%) and 11.6% for muscle cuts (up slightly).

The surge in beef exports to China continued in February, reaching 8,644 mt valued at $66 million – far above the minimal levels posted a year ago and making it the fourth largest destination for U.S. beef.

Through February, exports were more than 1,000% above last year’s pace in both volume (16,506 mt) and value ($124.1 million). Beef exports to China already exceed the full-year totals reached in 2019, prior to the U.S. securing expanded beef access through the Phase One Economic and Trade Agreement.

February beef exports to South Korea were slightly above last year’s strong totals, pushing January-February exports to 44,892 mt, up 9% from a year ago, while a 10% increase in value ($328 million) established Korea as the value leader for U.S. beef exports in early 2021.

Korea surpassed perennial value leader Japan, where exports felt the impact of an annual import safeguard established in the U.S.-Japan Trade Agreement.

While the higher safeguard tariff rate (38.5%) on beef muscle cuts was not triggered until mid-March, importers’ efforts to manage the safeguard likely impacted February shipments, which were 8% below last year at 24,879 mt, valued at $165.1 million (down 4%). Through February, beef exports to Japan were 10% below last year’s pace in volume (46,897 mt) and down 8% in value ($303.1 million).

Japan imposed the higher tariff rate on March 18. It will remain in effect for 30 days, when the rate declines to 25% – the same rate that now applies to beef cuts imported from Japan’s other major suppliers. As prescribed in the trade agreement, trade officials from the U.S. and Japan have begun consultations on possible adjustments to the safeguard.

While beef exports to most Western Hemisphere markets have trended lower in 2021, demand has strengthened in Central America, continuing the strong rebound seen in the fourth quarter of 2020. Led by growth in Guatemala, Costa Rica, El Salvador, and Nicaragua, exports to the region climbed 8% from a year ago to 3,107 mt, valued at $18.7 million (up 14%).

Following a record performance last year, beef exports to Taiwan are struggling in early 2021. Through February, exports were down 24% from a year ago to 7,638 mt, with value slipping 15% to $73.4 million. But USMEF-Taiwan reports that demand is strong, with lower volumes more related to shipping delays and the availability of U.S. product. Taiwan still imported more chilled U.S. beef through February, with volume up 3% to 4,250 mt and accounting for 79% of Taiwan’s total chilled imports.

Beef exports to Mexico were also below last year’s pace, due in part to lower shipments of variety meat. Exports to Mexico trailed last year by 19% in volume (33,734 mt) and 25% in value ($163.1 million).

Pork exports climb to the Philippines and Central America; strong rebound in Colombia

February pork exports equated to $60.34 per head slaughtered, down 11% from a year ago. The January-February average was down 10% to $58.68. February pork exports accounted for 29.4% of total production and 26.9% for muscle cuts, down from nearly 33% and 30%, respectively, a year ago. Through February, exports accounted for 28.6% of total pork production (down from 31.3%) and 26% for muscle cuts (down from 28.6%).

As anticipated, January-February pork exports to China/Hong Kong trended lower than the enormous volumes shipped in 2020 but the region continues to be the largest destination for U.S. pork. China’s efforts to rebuild its domestic swine herd have made progress, but production remains well below pre-African swine fever (ASF) levels and several cases have been reported this year, renewing concerns about disease-related setbacks.

Through February, exports to China/Hong Kong fell 25% year-over-year to 147,213 mt, valued at $329.8 million (down 32%). However, exports were 2.7 times larger than in the first two months of 2019.

In the Philippines, where pork production has also been greatly impacted by ASF, exports through February more than doubled last year’s pace in both volume (11,532 mt, up 114%) and value ($28.5 million, up 129%).

Prospects for further growth were bolstered this week when President Duterte ordered significant reductions in pork import tariff rates over the coming year. For three months, the in-quota tariff rate of 30% has been cut to 5% and the out-of-quota rate drops from 40% to 15%. For the following nine months, these rates will be 10% and 20%, respectively. Further changes are anticipated in the Philippines that will allow most imported pork to qualify for in-quota rates.

Following a record year in 2020, demand for U.S. pork continues to expand in Central America. February exports were record-large to Guatemala for the second consecutive month and set new highs in El Salvador and Costa Rica, while exports to Honduras were the fourth highest on record.

Through February, exports to Central America increased 46% from a year ago to 21,658 mt, valued at $53.3 million (up 38%). While most pork shipped to Central America is used for further processing, the U.S. industry has been successful in expanding U.S. pork’s presence in the region’s retail and foodservice sectors.

2020 pork exports to Colombia were heavily impacted by COVID-19 restrictions and economic headwinds, but demand has rebounded impressively in early 2021. February exports were the highest since November 2018, pushing January-February exports to Colombia 29% higher than a year ago to 15,871 mt, valued at $36.4 million (up 24%).

After a strong performance in 2020, exports to the Dominican Republic continued to gain momentum and established a record pace through February. Volume increased 55% to 10,877 mt, already reaching 25% of the 2018 volume record, while export value climbed 53% to just over $25 million.

Following a strong January, pork shipments to Japan took a step back in February as the two-month volume total slipped 4% from a year ago to 64,082 mt. Export value through February was also down 4% to $266.7 million. Japan’s tariff rates on U.S. pork, which vary by product, ratcheted down on April 1 under the U.S.-Japan Trade Agreement, remaining on a level playing field with imports from Canada and the European Union.

Pork exports to Mexico saw an up-and-down year in 2020, slumping in the middle of year before posting a strong rebound in the fourth quarter. Through February, exports to Mexico were 9% below last year’s pace at 120,838 mt, valued at $214.8 million (down 14%). Pork muscle cuts to Mexico totaled 101,615 mt, down 7% from a year ago but essentially matching the volume shipped to leading destination China/Hong Kong.

Variety meat demand drives growth in February lamb exports

Fueled by larger variety meat shipments to Mexico, Canada and Hong Kong, February exports of U.S. lamb increased 142% from a year ago to 1,152 mt, with value up 19% to $1.6 million. Through February, exports were up 52% from a year ago to 2,179 mt but value fell 19% to $2.8 million. Lamb muscle cut exports were down sharply overall but achieved growth in the Dominican Republic, Trinidad and Tobago and Bermuda.


What to read next

Italy will start using blockchain technology for Sicilian red oranges
New Zealand red meat exports reach record high
UK meat and dairy sector shows continued growth in January

U.S.: Pacific storm will bring strong winds, heavy rain, and mountain snow

 
A strong storm that originated over the Pacific has tracked through the Great Basin and is currently transitioning across the Rockies to redevelop across the central High Plains later today into early Saturday morning.
 
 

Latest

U.S. drillers add oil and gas rigs to 586
Cold-Link Logistics will create 123 new jobs in Robeson County, North Carolina
ArcelorMittal plans Alabama mill to produce electrical steel, will create 1,300+ jobs
Manhattan Tunnel Project estimated to create 15,800 new jobs

NEWS

EPPO probes steel import tax fraud with searches in UK and Germany

Police investigate extensive data breach on Valio’s network
U.S.: Prolonged heavy rain and snowfall
Croatia: Investigation launched against 2 individuals and 1 company suspected of subsidy fraud
Latvia-Sweden subsea cable damaged in Baltic Sea
Storm brings rain and snow to southwest U.S.; snow on higher elevations
 

BUSINESS

U.S. oil rig count rises to 479

New York AG warns businesses against price gouging of eggs and poultry amid bird flu outbreak
Firms admit laundering Russian wood into EU
U.S. oil and gas rig count falls to 576
Kansas Governor announces $25M for Stafford County Transload Facility Project
Ukraine planning to resume port concessions in 2025
 

Trending Now

EU to support Envision AESC France's production of batteries for electric vehicles

Denmark supports hydrogen pipeline to Germany with $1.1bn of subsidies

EU invests over €1.2 billion in cross-border infrastructure

More nuclear power plants will be approved across England and Wales


POLITICS

South Africa raises national minimum wage to $1.55 per hour

Moldova announces tender for constructing wind, solar parks worth 200 mln euros
Denmark supports hydrogen pipeline to Germany with $1.1bn of subsidies
EU invests over €1.2 billion in cross-border infrastructure
More nuclear power plants will be approved across England and Wales
Colorado and United Kingdom sign agreement to foster trade and investment
 

Today We Recommend

Moldova announces tender for constructing wind, solar parks worth 200 mln euros


Highlights 

Cold-Link Logistics will create 123 new jobs in Robeson County, North Carolina

ArcelorMittal plans Alabama mill to produce electrical steel, will create 1,300+ jobs

Manhattan Tunnel Project estimated to create 15,800 new jobs


COMPANIES

Egypt unveils new Suez Canal navigation charts for expanded route

Maersk and Hapag-Lloyd launch Gemini Cooperation
EU to support Envision AESC France's production of batteries for electric vehicles
Ooredoo and ASN to build subsea cable for GCC countries and Iraq
Pratt & Whitney to expand manufacturing operations in North Carolina, create 325 jobs
GE Vernova to create 75 new jobs in Schenectady County, New York
 

CAREERS

Inizio appoints Colin Stanley as chief commercial officer

Bridgewest Group names operating partner and general manager, Europe
Keith Hale named group CEO to Unite Titian Software & Labguru (BioData)
Solithor appoints new CEO
McWin appoints Guillaume Charlin as managing partner
PrecisionLife: Bill Keating new chief commercial officer, diagnostics and healthcare
 

ECONOMY

U.S. becomes New Zealand's second largest export destination

Indonesia goes from $0.6 billion deficit to $5.9 billion surplus
Greece to repay $5.3 billion bailout debt early
Fraser Institute: Canada’s debt ranking falls from best in G7 to 7th worst
Kuwait reports $5.2 bln budget deficit in FY 2023-24
Eurozone reports modest Q1 GDP growth, stable annual inflation
 

EARNINGS

Ericsson Q2 sales down but North America up

Lockton revenue $3.55 billion
Motorcar Parts of America Q4 sales $189.5 million
Limoneira Q2 revenue $44.6 million
Lululemon athletica Q1 revenue increased 10% to $2.2 billion
PVH Q1 GAAP EBIT $205 million
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

U.S. resumes cattle and bison imports from Mexico under new protocol

Canada considers lowering tebuconazole residue limit on grapes, impacting U.S. imports
How expensive was agricultural land in Europe in 2023
Iran to import 50,000 tons of potatoes to stabilize prices amid rising food costs
JBS and partners donate 3 million tags to improve livestock traceability in Pará, Brazil
Hong Kong suspends of poultry meat and products from areas in U.S.
 

LEADERSHIP

Study: Missing a deadline has a bigger impact than you might think

Employers prefer younger job candidates for AI roles although experienced workers perform same or better
Study finds workers misjudge wage markets
Some organizations may need to expand their hierarchical structures earlier than others
Study finds there's right way and wrong way to deliver negative feedback in workplace
Allyship is critical and its needs appreciation
 

CRIME

Commission fines Pierre Cardin and its licensee Ahlers €5.7 million for restricting cross-border sales of clothing

BHP, Vale agree to pay $30B damages for Brazil dam disaster
Commission fines České dráhy and Österreichische Bundesbahnen €48.7 million over collusion to exclude common compe
SEC charges Keurig with making inaccurate statements regarding recyclability of K-Cup beverage pod
SEC charges John Deere with FCPA violations for subsidiary’s role in Thai bribery scheme
AG Bonta secures $3.9 million settlement with cryptocurrency company Robinhood
 

Magazine

TRAVEL

Radisson Hotel Group debuts in the heart of Tunisia’s capital city, Tunis

Morocco’s first Radisson branded hotel opens in Casablanca
Buna channels, an unreal and beautiful part of Bosnia and Herzegovina
JW Marriott unveils Mindful Haven with opening of JW Marriott Hotel Nairobi
Sotheby's Sports Week returns with fantastic artifacts
Red Roof properties open in Michigan
 

SEA, LAND, AIR

Citroën C3 Aircross, the most affordable compact SUV with 7 seats

2025 Chevrolet Equinox stands apart with fresh looks and capability
Hill Helicopters HX50, luxury in the sky
Opel Movano becomes fully equipped camper van
Porsche Panamera, new hybrid variants
Dodge Charger, 670 horsepower of electric
 

DESIGN

Cold night, hot fire pit, cool entertainment

Embellish your home with PVC panels
You'll have to hurry if you want one of 20 new Louis Vuitton watches
Luxury duvet looks good, fells good and keeps you healthy
Vacheron Constantin, watches for life and more
Schüller kitchens, where functionality marries design
 

GADGETS

MESA/Boogie Celebrates 40-year partnership with John Petrucci

reMarkable 2, monochrome tablet for your thoughts and your eyes
OnePlus Ace 3V, first with Snapdragon 7 Plus Gen 3
ASUS Zenfone 11 Ultra, flagship with a reason
Samsung Galaxy S24 is photography powerhouse
Casette tapes are making a big comeback, and so are portable players
 

HEALTH

Human cases of anthrax reported in western Mongolia

One more barrier to developing vaccine for HIV removed
Rwanda begins world's first clinical trial for treatment of Marburg virus disease
Rwanda restricts gatherings amid Marburg virus outbreak, to begin trials of vaccine
Teksas Attorney General reaches settlement in first-of-its-kind healthcare generative AI investigation
Potentially deadly fungal disease spreading in California
 

MEANTIME

India launches space docking experiment mission

World-first carbon-14 diamond battery made
Einstein Telescope step closer
Exoplanet-hunting telescope to begin search for another Earth in 2026
India to build first phase of its own space station by 2028
Roscosmos chief approves schedule of creating Russian orbital station through 2033