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Jan 12, 2024

Beef exports improving in first quarter

March beef exports were the largest since October though less than this past

March beef exports were the largest since October though less than this past year's large volume, according to data released by U.S. Department of Agriculture and compiled by the U.S. Meat Export Federation.

Beef exports totaled 120,495 metric tons in March, a decrease of 5 percent from a year ago. Export value decreased 17 percent to $892.6 million, but both volume and value were the best in five months. Through the first quarter, beef exports saw a decrease of 8 percent year-over-year to 326,494 metric tons, valued at $2.35 billion.

"U.S. beef exports faced considerable headwinds late last year and at the beginning of 2023, but the March results show some encouraging trends," said Dan Halstrom, U.S. Meat Export Federation president and CEO. "Most Asian markets showed renewed momentum in March, while exports continued to trend higher to Mexico, the Caribbean and South Africa."

Mexico continued to be a bright spot for U.S. beef exports in March, with shipments seeing an increase of 17 percent from a year ago to 17,454 metric tons, valued at $97.3 million. This pushed first-quarter exports to 50,509 metric tons, an increase of 16 percent from a year ago, while value increased 17 percent to $283.6 million. One factor bolstering Mexico's beef demand in 2023 is the strength of the peso, which has given Mexican customers greater purchasing power compared to buyers in several other key markets. Mexico is the largest volume destination for U.S. beef-variety meat, with first-quarter exports increasing 13 percent from a year ago to 25,533 metric tons, valued at $72.6 million. Top variety-meat export items to Mexico include livers, tripe, lips, hearts and tongues. First-quarter shipments of beef lips were the biggest since 2017 at 7,202 metric tons, an increase of 38 percent from a year ago, valued at $16.6 million.

Although March beef shipments to South Korea were at a slight decrease from a year ago, export volume was the largest in 10 months at 25,605 metric tons. Export value was a decreased significantly from the enormous total posted in March 2022, but was still the best since August at $200.5 million. For the first quarter exports to Korea trailed this past year's record pace by 15 percent in volume and 36 percent in value.

March beef exports to China-Hong Kong were also less than the previous year but were the largest since October at 21,211 metric tons. March export value was $188.5 million, a decrease of 9 percent from a year ago but also the best since October. First-quarter exports to China-Hong Kong saw a decrease of 11 percent from a year ago to 55,122 metric tons, while value decreased 18 percent to $477.2 million.

Other first-quarter results for U.S. beef exports

• Japan is this year's leading volume market for U.S. beef exports at 69,280 metric tons, a decrease of 4 percent from a year ago, while first-quarter value decreased 20 percent to $473.9 million. Prospects brightened for U.S. beef demand at the end of April, when Japan lifted all COVID-related restrictions for arriving travelers. That's expected to provide a significant boost for Japan's tourism and hospitality sectors, which have been slow to recover from the pandemic.

• Led by impressive growth in the Dominican Republic, Jamaica, the Bahamas, Netherlands Antilles, Trinidad and Tobago, Bermuda and Barbados, first-quarter beef exports to the Caribbean climbed 21 percent from a year ago to 7,638 metric tons, valued at $67.1 million. March shipments to the Dominican Republic were record-large at 1,056 metric tons, an increase of 9 percent year-over-year, valued at $11.8 million.

• The Philippines continues to be a growth market for U.S. beef, with March exports climbing 24 percent from a year ago to 1,492 metric tons, valued at $9.3 million. First-quarter exports increased 15 percent to 3,782 metric tons, though value decreased 12 percent to $22.4 million.

• Demand for U.S. beef increased dramatically in South Africa, where first-quarter exports almost tripled from a year ago to 5,825 metric tons – an increase of 184 percent. All but 33 metric tons were beef-variety meat; shipments of beef livers and kidneys have rebounded following challenges in 2022. Export value to South Africa saw an increase of 206 percent to $6.3 million. With first-quarter shipments of beef-variety meats also increasing to Cote D’Ivoire, total beef exports to Africa saw an increase of 84 percent from a year ago to 6,816 metric tons, valued at $7.9 million.

• Beef-variety-meat demand also fueled first-quarter growth in Peru, where variety-meat exports saw an increase from a year ago to 1,024 metric tons, with value climbing 91 percent to $1.9 million. March shipments totaled 637 metric tons, a significant increase from the previous year's muted volumes and the best since September. Beef-muscle-cut exports to Peru also trended better, increasing 49 percent in volume and 30 percent in value.

• March beef-export value equated to $397.22 per head of fed slaughter, a decrease of 16 percent from a year ago, while the first-quarter average was a decrease of 21 percent to $373.42. Exports accounted for 14.6 percent of total March beef production and 12.3 percent for muscle cuts only, each a decrease of about one-half percentage point from a year ago. The first-quarter ratios were 14 percent and 11.8 percent, a decrease from 14.7 percent and 12.5 percent, respectively, a year ago.

Visit www.usmef.org/news-statistics/statistics for more information.

Joe Schuele is the communications director for the U.S. Meat Export Federation, the trade association responsible for developing international markets for the U.S. red-meat industry. It's funded by the U.S. Department of Agriculture; the beef, pork, lamb, corn and soybean checkoff programs; and its members representing nine industry sectors. Visit www.usmef.org for more information.

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