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
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