U.S. beef, pork exports up in October

U.S. beef, pork exports up in October    The U.S. Meat Export Federation reported U.S. beef exports reached their second-highest value of the year at $375.3 million, surpassing the September total by 11 percent and topping October 2009 by 37 percent.
   USMEF said the monthly value of pork exports in October was the third-largest of the year at $407.8 million, 7 percent higher than September and 9 percent higher than October 2009.
   “With two months of results still to come, we anticipate the possibility of setting a new export value record this year,” said Philip Seng, USMEF president and chief executive officer, in a statement.

Seng

   The U.S. beef industry's exports were stunted in December 2003 when the U.S. Department of Agriculture reported a case of bovine spongiform encephalopathy, or 'mad cow' disease. The USDA and industry worked with overseas governments to enhance safety and restore confidence in U.S. beef.
   'We’ve established a presence for U.S. beef in many new and diverse destinations across the globe in order to get back to this level,' Seng said. 'So now the key is to achieve full restoration of all markets so we can take U.S. beef to even greater heights.”
   USMEF said U.S. beef has achieved a significant increase in nearly every major destination except for Mexico this year, and even that market is improving. While exports to Mexico are down for the year, October totals were up 5 percent in volume (22,194 metric tons) and 10 percent in value ($71.9 million) over October 2009.
   Exports to Canada are up only slightly in volume this year (123,549 metric tons) but have surged 10 percent in value to $589 million, USMEF noted. Japan is up 31 percent in both volume (103,057 metric tons) and value ($528.5 million). Korea remains in fourth place, but has achieved exceptional growth this year, jumping 125 percent in volume to 90,640 metric tons, and 168 percent in value to $422.3 million.
   Other markets achieving strong growth in 2010 include Russia, where exports have more than doubled in volume to 49,766 metric tons, and quadrupled in value to $134.3 million. This reflects a nearly 700 percent surge in muscle cut exports to Russia, valued at $95.3 million. Exports to Taiwan have eclipsed the previous record, reaching 31,522 metric tons valued at $172.4 million. This is an increase of 42 percent in volume and 51 percent in value over 2009. Exports to Hong Kong are also up sharply this year — 53 percent in volume to 28,735 metric tons, and 70 percent in value    to $109.2 million.
   The Middle East has also demonstrated tremendous growth for U.S. beef, increasing by 28 percent in volume to 104,732 metric tons, and 65 percent in value to $200 million. Like Russia, this sharp increase in value reflects a strong surge in muscle cut demand, though the region remains a top destination for beef variety meat.
   U.S. beef exports to the ASEAN region are up 10 percent in volume to 57,321 metric tons, and 16 percent in value to $187.4 million, despite a down year for exports to Vietnam. Strong growth in Indonesia and the Philippines has fueled the ASEAN region’s solid performance, USMEF said.
   U.S. pork exports are up only 2 percent in volume over 2009 to 1.39 million metric tons, but have posted a 9 percent increase in value to $3.49 billion. For the first 10 months of the year, this puts U.S. pork exports just 3.5 percent behind the all-time record pace of 2008 for export value.
   “When we shattered all pork export records in 2008, most analysts estimated that we could not get back to that same level for several years,” Seng said. “But despite ongoing market access issues and some trade barriers that have recently surfaced, the U.S. industry is mounting a challenge to the 2008 record. We’re looking at a solid finish to 2010.”
   According to USMEF, Mexico, the largest volume market for U.S. pork, has already broken the single-year value record of $762.3 million it set last year. With 437,615 metric tons valued at $795.3 million, exports to Mexico have exceeded last year’s record pace by 7 percent in volume and 31 percent in value.
   But exports to Mexico have been hampered the past few months by a retaliatory 5 percent tariff imposed as a result of the North American Free Trade Agreement trucking dispute. “This market is more critical to us than ever, and we need to keep working to resolve this trade impasse,” Seng said.
   U.S. pork has posted another positive year in Japan, reaching 358,578 metric tons valued at more than $1.35 billion. This is up only slightly in volume over last year, but 4 percent higher in value. With a strong finish to 2010, exports to Japan could reach $1.5 billion for the third consecutive calendar year, USMEF said.
   Pork exports to Canada have been very strong in 2010, reaching 149,123 metric tons valued at $511.8 million. This is an 8 percent increase in volume and a 21 percent increase in value over last year.
   The ASEAN region is up 28 percent in volume to 57,141 metric tons, and 42 percent in value to $115 million. This region is led by a very strong performance from the Philippines and Singapore.
   USMEF noted that its marketing efforts in Central America are paying off, as the Central and South America region is up 35 percent in volume to 47,343 metric tons, and 41 percent in volume to $112.1 million. Honduras and Guatemala are the leading markets in Central America, while Colombia is the pacesetter in South America.
   The only pork export markets performing below last year are Korea, Hong Kong, Taiwan and Russia. Exports to Russia got off to an exceptionally slow start in 2010 due to lack of market access for a large number of U.S. plants. That recovery is still not complete, but the situation is showing signs of improvement. Taiwan’s zero tolerance for ractopamine residue is often cited as a reason for slowing activity by U.S. exporters, USMEF said.
   U.S. lamb exports continued to struggle in all major markets except Mexico. Exports to Mexico were up about 25 percent over last year, reaching 3,967 metric tons valued at $7.35 million. The Dominican Republic is also showing promise as a growth market for U.S. lamb, with exports more than doubling over last year to 212 metric tons valued at $639,000. Overall, lamb exports have fallen 5 percent in volume to 8,841 metric tons and 25 percent in value to $17.5 million for the first 10 months of 2010, USMEF said. ' Chris Gillis