U.S. beef and pork exports opened 2021 below the large volumes posted a year ago, according to January data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports totaled 105,047 metric tons (mt) in January, down 2% from a year ago, while value slipped 3% to $653 million. The decline was due mainly to lower beef variety meat shipments, as muscle cut exports were steady with January 2020 at 81,398 mt, valued at $584.4 million (down 1%) and accounted for a larger share of production than a year ago.
January pork exports totaled 248,656 mt, down 9% from a year ago but slightly above USMEF’s projections. Export value was down 13% to $642.8 million. Pork muscle cut exports were down 11% in volume (208,234 mt) and 15% in value ($551.3 million), while pork variety meat shipments trended modestly higher than a year ago.
January beef exports equated to $311.78 per head of fed slaughter, up 3% from a year ago. Exports accounted for 13.3% of total beef production and 11% for muscle cuts only, above the January 2020 ratios of 13.1% and 10.6%, respectively.
Beef exports to South Korea opened 2021 on a very strong note, climbing 20% from a year ago in volume (21,355 mt) and 22% in value ($158.7 million). On Jan. 1, U.S. beef received another tariff reduction under the Korea-U.S. Free Trade Agreement. The rate is now 13.3% – about one-third of the pre-FTA rate of 40% – and will decline to zero by 2026. The U.S. has a tariff advantage compared to Australia (18.6%) and Canada (21.3%) in 2021, and tariffs do not phase to zero for Australia and Canada until 2028 and 2029, respectively, under their free trade agreements with Korea.
January was another big month for U.S. beef exports to China, which were up nearly 800% from a year ago in both volume (7,862 mt) and value ($58.1 million). In September, the U.S. overtook Australia as China’s largest grain-fed beef supplier. In January Australia’s grain-fed exports to China were 3,345 mt, down 49% from 2020.
Japan remained the leading volume market for U.S. beef at 22,018 mt, down 13% from a year ago, but slipped to second place in value (behind Korea) at $138.1 million (also down 13%). Most of Japan’s major cities have been under a COVID-related state of emergency since early January that includes reduced hours for restaurants and cafes.
Restrictions were recently eased in some areas but remain in place in the Tokyo metropolitan area. Japan’s imports of U.S. beef have also been impacted by the U.S.-specific safeguard, which is likely to trigger in March even as importers have slowed volumes in an effort to avoid reaching the safeguard threshold.
If the safeguard is triggered, the duty on U.S. beef muscle cuts will increase from 25.8% to 38.5% for 30 days. ■