US red meat exports end Q1 at elevated levels

U.S. red MEAT exports ended the first quarter on a very strong note, according to data released by the USDA and compiled by the United States Meat EXPORT Federation (USMEF), with beef and pork exports posting their highest monthly figure on record in March, setting new records for volume in March.

In fact, in March, the value of beef exports crossed the $800 million mark for the first time, reaching $801.9 million, up 14% year-over-year. Beef exports in March amounted to 124,808 tons, up 8% from a year ago, and is the second largest in the period after FMD outbreaks in the country.

Beef tenderloin exports set new monthly records in both volume (98,986 tons, up 13% from a year ago) and value ($718.3 million, up 17%). In the first quarter, beef exports caught up with last year's pace - 333,348 tons worth $2.12 billion. 

Beef exports to SOUTH KOREA rose again in March to 24,104 tons, up 7% from a year ago and valued at $175.9 million (6% up). In the first quarter, exports were 8% above last year's pace in both volume (68,996 tons) and value ($503.9 million), making Korea the top export value for US beef this year. 

March beef exports to CHINA were well above last year's lows and hit a new monthly record of 14,552 tons worth $109.9 million. This led to an increase in exports in the first quarter of more than 1,500% compared to last year's pace in both volume (31,058 tons) and value ($234.1 million), with exports up about 25% compared to a strong fourth quarter of 2020. The US is currently the largest supplier of grain-fed beef to China. Additional US plants were approved for export to China in April, raising the prospect of further export growth in the coming months.

Japan remains the largest market for US beef, although first-quarter exports were 9% below last year's pace of 75,409 tons worth $485.2 million (down 7%). March exports were affected by a higher protective tariff rate, which was introduced on 18 March and remained in effect for 30 days. The tariff rate on U.S. beef is now 25%, up from 38.5% introduced during the safeguard period, and reflects the rate Japan has been applying to imports from other major suppliers since April 1.

Pork exports in March were a record 294,724 tons, up 1% from last year, and set a new value record of $794.9 million (up 4%). In the first quarter, pork exports were 7% below last year's pace in both volume (782,620 tons) and value ($2.07 billion). 

China/Hong Kong will remain the largest market for U.S. pork in 2021, despite Q1 exports falling 20% ​​year-over-year to 236,498 tons worth $532.3 million (down 27%). 

Strong U.S. pork demand was also reported in the Philippines, which tripled its imports compared to 2019 to 25,377 tons, up 190% year-over-year and 86% above the high pace of the fourth quarter. The value of exports more than tripled in the first quarter to $62.4 million, up 201%. This was achieved before the Philippine government ordered a temporary reduction in tariff rates on imported pork to increase supplies and stabilize prices, which took effect April 7. 

“It's great to see such an outstanding month of breakthrough for U.S. beef and pork exports. Meat exports got off to a good start in 2021 given the logistical and labor challenges the industry is facing and the ongoing restrictions in the catering sector in many key markets. While these hurdles are not completely over, the March results show that things are improving and the export figures better reflect the strong global demand for US red meat,” commented Dan Halström, President and CEO of USMEF.