USMEF: rocky start to beef exports this year

Beef exports to several major destinations declined in January, although shipments increased sharply to Mexico, the Dominican Republic, the Philippines and Africa. January volume fell 15% year-on-year to 100,942 tons worth $702.3 million (down 32%).

Stocks of beef rose in some key markets towards the end of last year, exacerbating a difficult situation for US exports .

“While beef exports are off to a slow start in 2023, we remain optimistic that post-COVID catering demand will grow in additional markets throughout the year,” said USMEF President and CEO Dan Halstrom.

Beef exports in January fell significantly in most Asian countries compared to the high figures of the previous year. The decline was particularly sharp in SOUTH KOREA, where volume fell 36% to 18,896 tonnes and value fell 52% to $151.5 million. The decline was less pronounced in Japan, where January exports were down 2% to 22,456 tons and the value fell 20% to $144.9 million.

Exports to CHINA /Hong Kong, which also hit new highs in 2022, fell 24% year-over-year to 14,980 tons worth $125.3 million. Late last year, China lifted COVID-related restrictions for residents and travelers, and in January canceled testing and disinfection of imported cold chain products. But these changes come amid a significant wave of covid cases, likely delaying consumer demand.

Beef exports to Mexico showed a positive trend in January, up 20% year-over-year to 17,479 tons worth $94.7 million, up 19% and the highest in more than a year. US beef may soon face increased competition in Mexico as Mexican officials gave final approval to import requirements for some commodities from Brazil earlier this week. This will be the first time the country has opened up to Brazilian beef.

Other beef EXPORT results for January include:

Driven by strong growth in the Dominican Republic and the Bahamas, January exports to the Caribbean increased 26% year-over-year to 2,339 tons, with value up 15% to $19.6 million. Exports also increased to Jamaica, the Netherlands Antilles and Trinidad and Tobago.

The Philippines continues to be a promising destination for US beef, with January exports up 73% year-over-year to 1,020 tons worth $6 million (up 17%).

With larger shipments to South Africa, exports to Africa almost quadrupled from last year's low volume to 2,624 tons (up 284%). Export value increased by 148% to just over $3 million. After a sluggish 2022, cattle MEAT exports to South Africa rose sharply to 2,119 tonnes in January, the highest since April 2021 and the fourth-highest monthly figure on record. Most of the January exports to South Africa were beef liver.

Exports to Taiwan, which had been a record high in 2022, took a step back in January, falling 34% year-over-year to 4,578 tons worth $44.3 million (a 47% decrease).