Skip to main content

U.S. Beef Exports Soar, But Pork Suffers Under Tariffs

July exports of U.S. pork and beef were higher than a year ago, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Export value results were mixed, with beef exports posting another near-record month while pork export value declined, reflecting the impact of retaliatory duties imposed by Mexico and China.

Pork exports totaled 176,413 metric tons (mt) in July, up 1.5 percent from a year ago, valued at $465.3 million – down 5 percent year-over-year and the lowest monthly value since February 2016. For the first seven months of the year, pork exports remained 2 percent ahead of last year’s record volume pace at 1.45 million mt, while value was up 3 percent to $3.83 billion.

Led by spectacular performance in South Korea and strong growth in Japan, Taiwan and Latin America, July beef exports climbed 12 percent in volume to 116,575 mt, valued at $722 million – up 16 percent from a year ago and just slightly below the May 2018 record of $722.1 million. For January through July, beef exports established a record pace in both volume (779,450 mt, up 10 percent year-over-year) and value ($4.76 billion, up 20 percent).

With pork exports, July value suffered due to trade headwinds

The duty rate on most U.S. pork entering Mexico increased from zero to 10 percent in early June and from 10 to 20 percent in early July. This took a toll on July exports to Mexico, especially in terms of value. July volume was 56,484 mt, down just 4 percent from a year ago. But pork moved south at lower prices, with value falling 25 percent to $92 million.

In China, the duty rate on U.S. pork and pork variety meat increased from 12 to 37 percent on April 1, and to 62 percent on July 6. July exports to the China/Hong Kong region totaled 22,199 mt, down 31 percent from a year ago, while value dropped 19 percent to $55.9 million. Pork variety meat volume to China was hit especially hard in July, dropping 49 percent from a year ago to 7,446 mt. For January through July, pork and pork variety exports to China/Hong Kong dropped 22 percent year-over-year in volume (238,207 mt) and 10 percent in value ($563 million) – due in part to the higher duty rates, but also due to an upward trend in China’s domestic pork production. 

Source: U.S. Meat Export Federation

Artwork: Pork Carcase Cuts
Pork
Meat
Farm Supply

Popular posts from this blog

U.S. Pork, Beef Exports Surge in March

The pace of U.S. beef and pork exports increased sharply in March, driven by double-digit increases to leading markets Mexico, the China/Hong Kong region and South Korea, according to statistics released by the USDA and compiled by the U.S. Meat Export Federation (USMEF). U.S. pork exports reached their highest monthly total since October 2012: 209,704 metric tons (mt) valued at $606.7 million, increasing 29 percent in both volume and value over March 2013. Exports of U.S. beef rose 12 percent in volume to 93,380 mt valued at $516.2 million, an increase of 17 percent. When measured in proportion to overall U.S. beef and pork production, March exports also showed gains. Total pork exports (muscle cuts plus variety meat) equated to 31.5 percent of total U.S. pork production in March (26 percent of muscle cuts alone) versus 28 and 23.5 percent, respectively, a year ago. Beef exports accounted for 14 percent of total production and 11 percent of muscle cuts – up from 12 and 9 perce...
Read more

Cattle Market Falls Back

After a couple weeks of higher holiday trade, fed cattle prices settled back last week. The 5-Area slaughter steer price averaged $105.46/cwt on a live weight basis, $0.82/cwt lower than the previous week. Dressed prices were down about $1/cwt as well. Choice boxed beef gained nearly $4/cwt last week to average $165.81/cwt. Feeder cattle volume picked up significantly in the first full week of the year. While price comparisons to the previous week weren’t available in several markets, generally higher prices were noted. The price for yearlings in Nebraska averaged almost $3/cwt higher, while 500-600 lb calves were more than $10/cwt higher. Through Thursday of last week, corn prices were $0.14/bu lower, basis Omaha, NE. Prices for DDGS and WDGS were up another $2-4/ton last week in Nebraska. Source: Darrell R. Mark, Department of Agricultural Economics, University of Nebraska–Lincoln Farm Supply Beef Animal Husbandry Books Farm Magazines Beef Cattle: Keeping a Small-Scale Herd fo...
Read more

Cotton Market Declines

As cotton and cotton-related products are discretionary items, COVID-19 has significantly impacted demand for cotton. The greatest decline in consumption has been observed in China and India. Retail sales in clothing and clothing accessories in the U.S. experienced an  87% decline in April  from the previous year. With the anticipation of a decline in consumers’ consumption of apparel, the recovery of the spinning industry is anticipated to be slow. Slightly lower production, reduced consumption and higher beginning and ending stocks are projected for the 2020 cotton crop globally. World cotton production in 2020 is forecast at 118.7 million bales, 3% (4.2 million bales) below the previous year. Global cotton mill use is forecast at 114.4 million bales in 2020, 11.5% (12 million bales) above 2019, but still significantly lower than 2017 and 2018 levels. The world ending stocks are also projected at 104.7 million bales, the second-highest level on record. U.S. cotton pro...
Read more