US beef export volume was the lowest in five years, due in part to China’s failure to renew registrations for the vast majority of U.S. plants, said the United States Meat Export Federation (Usmef).
Beef and beef subproduct exports totaled 93,928 mt in June, down 15% from a year ago and the lowest since June 2020. Export value was $769 million, down 18% and the lowest in 17 months. For January through June, beef exports were 6.5% below last year’s pace at 602,221 mt, while value fell 6% to $4.92 billion.
Muscle beef exports totaled 72,910 tons, down 5% month-on-month and 17% in the yearly comparison.
Lack of access to China not only results directly in lost business and missed opportunities, but the U.S. beef industry is also losing the premiums generated when Chinese buyers compete for cuts that are especially popular throughout Asia, such as short plate, top blade, chuck rolls and short ribs, said Usmef. Without exports to China, USMEF estimates the U.S. beef industry’s lost opportunity at $150 to $165 per head of fed slaughter, or about $4 billion annually.
“The June export results really underscore the urgent need to resolve this impasse with China,” said USMEF President and CEO Dan Halstrom. “China’s tariff rate on U.S. beef is currently 32% – which is too high, but not insurmountable. The problem is, with only a few plants eligible to ship to China, the tariff rate becomes irrelevant. Consistent and transparent plant approvals, without expiration, were among the most important components of the 2020 Phase One Agreement with China, and it’s time for China to return to those commitments.”
Beef exports to leading market South Korea totaled 19,310 mt, steady with a year ago, though value fell 5% to $181 million. January-June shipments increased 8% to 126,177 mt, while value climbed 9% to $1.2 billion.
Usmef also highlights that robust growth in Chile, an ongoing rebound in Colombia and the largest volume of the year to Peru fueled strong June beef exports to South America.
June pork exports totaled 239,304 metric tons (mt), up 7% from a year ago, while value increased 3.5% to $682.6 million. For the first half of the year, exports were down 4% from last year’s record pace at 1.46 million mt. Export value was $4.11 billion, down 3.5% from a year ago but still the third highest first-half total on record.
