U.S. sees beef, pork export boom

The United States shipped a record US$18.7 billion worth of pork and beef products around the world in 2021 and is on pace to exceed that total this year. | Source: U.S. Meat Export Federation

America’s red meat exports are booming, says an industry official.

The United States shipped a record US$18.7 billion worth of pork and beef products around the world in 2021 and is on pace to exceed that total this year.

Beef exports have topped $1 billion in six of the seven months that data is available for this year. Total red meat exports in 2022 are forecast at $20 billion.

Erin Borror, vice-president of economic analysis with the U.S. Meat Export Federation, said that is an astonishing accomplishment considering many Asian markets are still dealing with COVID restrictions.

That is keeping a lid on restaurant sales, where red meat consumption is traditionally far higher than it is in Asian homes.

“The fact that they’re choosing our product regardless of where they’re eating it just makes it that much better of a story,” Borror said during the Ag Outlook Forum presented by AgriPulse and The Agricultural Business Council of Kansas City.

The U.S. is the world’s top beef exporter with sales of $6.19 billion in the first half of 2022, barely topping Brazil’s $6.14 billion.

China rapidly emerged as a $1.6 billion per year beef customer for the U.S. due to the Phase 1 deal. Sales to that market were basically non-existent before that agreement.

The deal introduced another bidder in Asia, forcing Japan, South Korea and Taiwan to pay more for products like short plate beef cuts.

The U.S. ranks second in world pork sales with $3.62 billion in exports, behind the European Union’s $6.41 billion. The EU has 27 countries contributing to that total.

African Swine Fever (ASF) decimated China’s hog herd in recent years, resulting in U.S. pork trade surge in 2020 and 2021. China has now rebounded from that disease, which is shifting trade patterns in 2022.

But the EU’s pork production will be down an estimated five percent this year due to ASF and regulatory burdens. It will be the first meaningful decrease in production in that market since 2009.

Borror said the big natural advantage for the U.S. is the country’s ample corn and soybean crops. An estimated $5 billion of those two crops are indirectly exported to markets around the world in the form of meat products.

“It is our ability to add value to our feed grains through red meat exports that is the real story,” she said.

Borror stressed that the superior animal health status of the U.S. beef and pork sectors cannot be taken for granted.

“Indonesia has FMD (foot and mouth disease) and lumpy skin disease running rampant,” she said. “That’s close to Australia. They are super-paranoid. We can’t let our guard down.”

A lot of U.S. beef and pork products are shipped through west coast ports where there have been serious COVID-related service disruptions.

“We have lost opportunities, no question,” said Borror. “Not only did we maybe not have as much product to sell as we could have, but we just couldn’t get it there.”

The logistics problems led to a reduction in chilled meat sales, which had been a comparative advantage for the U.S. due to short shipping times to Asian markets.

“We have seen retail customers look for more frozen (products), and that has taken some premiums out,” she said.

Beef exports have averaged $476 per head, with $49 of that total being variety meats such as tripe, intestines and tongues. Pork exports have averaged $59 per head, with $9.52 being variety meats.

Those products are not typically consumed in the U.S. market.

“Every pound that we’re able to sell of these variety meats adds dollars across the whole supply chain,” said Borror.

The strong U.S. dollar will be a significant headwind in 2022-23 for markets in Japan and South Korea, but that is not the case for Mexico, where the peso has fared well compared to the U.S. dollar.

Mexico is the top market for U.S. pork and the third biggest market for U.S. beef.

Tags: Production, sales, red meat, China, exports, pork, Brazil, EU, United States, Beef