With United States Department of Agriculture (USDA) and US Meat Exporters Federation (USMEF) data now available to the end of October, US beef exports are on track to set a new record for both volume and value.

In the first 10 months of the year, the total volume shipped was 1.19m tonnes, with a value of $8.53bn (€7.55bn).

This puts the US well ahead of Australia, which exported 734,912t (Meat and Livestock Australia) to the end of October, 16% down on the same period in 2020 as herd rebuilding continues.

Asian markets

High-value Asian markets continue to be the main outlet for US beef exports, with South Korea, Japan and China/Hong Kong all expected to be worth $2bn or more by the year end.

Japan is the largest volume market, taking 23,435t in October, bringing the total so far for 2021 to 235,260t, followed by South Korea taking 21,934t in October, bringing the year-to-date total to 235,260t.

The most dramatic performance of all US beef exports is the surge of sales to China less than two years after the Phase 1 Economic Trade agreement ended the trade dispute between China and the US.

In October, export volumes reached 16,815t, bringing the total for the year to date up to 154,857t, five times more beef than was exported to China during the same period in 2020. When Hong Kong is added, the volume figure increases to 198,409t.

The US is now China’s main supplier of high-value grain-fed beef, with their 6% volume share of Chinese imports accounting for 10% of the value.

Pigmeat

US pigmeat exports were down 7% in October compared with last year, with the year-to-date total reaching almost 2.5m tonnes, marginally higher than last year, with the value of $618.8m (€548m) down 3.5% on a year ago reflecting weaker global pig markets in 2021.

Turbulence in China has been a problem for all global exporters and the US is no exception, with the volume of pigmeat exports to China down 24% compared with January to October last year at 661,637t and the value was also down 22% to $1.5bn (€1.33bn).

Positive for 2022

USMEF expect that meat exports will reach $18bn (€16bn) in 2021, with strong global demand that they are cautiously optimistic about extending into 2022. A note of caution was added about the “unprecedented transportation challenges and rising input costs”.

Global shipping has been a major issue for North and South America, as well as Australia and particularly New Zealand. This was caused by disruption to trading patterns over the duration of the pandemic.

Comment

The US is an exception in global beef trade in that it imports as much beef as it exports. This is because consumer demand in the US is higher for burger meat than is produced.

Therefore, the US exports the higher-value steak and roasting cuts, while importing forequarter cuts for mincing.

Ireland has a small share of this market - 7,300t to the end of November, according to USDA import data, a 24% drop on the same period last year.

Ireland has ambitions to develop high-value Asian markets, but volumes are still small to Japan and we remain closed to South Korea and exports to China are suspended.

The US will be a formidable competitor in these markets when Ireland has approval and it will be a case of grass-fed Irish going head to head with grain-fed US.