Beef Export Value Climbs in June; Pork Trends Lower in June but Posts Strong First Half

SLIDES OF JANUARY-JUNE 2024 EXPORT HIGHLIGHTS

June exports of U.S. beef reached the highest value in nearly two years, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). While June pork exports were lower year-over-year, shipments through the first half of the year remained ahead of the record value pace of 2023.

Beef exports totaled 110,155 metric tons (mt) in June, down 4% from a year ago but the second largest of 2024. Export value reached $938.3 million, up 3% year-over-year and the highest since August 2022. Through the first half of the year, beef export value climbed 5% from a year ago to $5.22 billion, despite a 4% decline in volume (643,733 mt).

“June beef exports performed very well in Japan, which was great to see given the significant headwinds U.S. beef has faced there this year,” said USMEF President and CEO Dan Halstrom. “Export value also rebounded nicely in Korea and shipments to Taiwan and Canada were outstanding. This made for another strong month in terms of export value per head slaughtered, which was nearly $460 in June.”

June pork exports totaled 224,392 mt, down 9% from a year ago and the lowest since September, while export value fell 5% to $659.7 million. However, January-June volume still reached 1.52 million mt, 3% above the first half of 2023, while export value increased 5% to $4.26 billion.

“June was a slower month in a few of our key destinations for U.S. pork, including Mexico and Colombia, where exports have been on a blistering pace and buying accelerated again in July,” Halstrom said. “But June was another terrific month for U.S. pork in Korea, where exports could be record-large this year. Shipments also trended higher year-over-year to Central America and Canada, and it was encouraging to see export value per head slaughtered hold firm in the $66 range.”

While U.S. beef maintains a strong retail presence in Japan, foodservice demand has benefited from a huge jump in tourism, as the record number of foreign visitors entering Japan this year is expected to approach 35 million. Japan’s inventories of imported beef at the end of June were nearly 9% lower year-over-year, suggesting further import demand should be expected in the second half of 2024.

June beef exports to Taiwan reached 7,318 mt, up just slightly from a year ago but the highest since April 2022 and the third largest on record. Export value increased 18% to $80.1 million – also the third highest on record. While first-half exports to Taiwan were still 9% below last year at 30,710 mt, export value edged 2% higher to $334.8 million.

Beef exports to Canada posted impressive gains in June, with value reaching the highest level in 10 years at $116.5 million – up 29% from a year ago. June volume was up 17% to 11,854 – the highest in nearly nine years. Through the first half of the year, exports to Canada dipped slightly in volume (51,438 mt, down 1%) but climbed 12% in value to $469 million.

Other January-June results for U.S. beef exports include:

• June exports to Korea totaled 19,378 mt, down 9% from a year ago. But export value rebounded to $190.4 million – up 2% from a year ago and a 13% increase from the previous month. Korea is the leading value destination for U.S. beef in 2024, with first-half export value increasing slightly from a year ago to $1.1 billion, despite a 13% decline in volume (116,338 mt).

• Although June beef exports to Mexico were below last year’s volume (17,150 mt, down 5%), value still increased 1% to $98.8 million. The June slowdown was in variety meats, as muscle cut volume was still up 4% to 8,293 mt. Mexico’s demand for U.S. beef soared in the first half of the year, with beef and beef variety meat volume climbing 13% to 113,473 mt, while export value jumped 19% to $662.8 million. U.S. beef’s momentum in Mexico was fueled in part by a strong peso in the first half of the year, so the recent decline in buyers’ purchasing power and heightened economic uncertainty could impact the market in coming months. However, beef supplies remain tight in Mexico due to severe drought.

• Beef exports to the Middle East have rebounded impressively in 2024 and this trend continued in June with shipments reaching 4,270 mt, up 22% from a year ago. Export value increased 25% to $20.8 million. Led by larger variety meat exports to Egypt and stronger demand for muscle cuts in the United Arab Emirates, Kuwait, Qatar, Bahrain, and Oman, January-June exports to the region soared 31% in volume (28,195 mt) and 33% in value ($127 million) from a year ago.

• Led by strong demand in the Dominican Republic and a surge in shipments to Cuba, June beef exports to the Caribbean totaled 2,711 mt, up 35% from a year ago, while value climbed 19% to $22 million. First-half exports to the region, which were also bolstered by record variety meat shipments to Trinidad and Tobago and strong demand for variety meat in Jamaica, increased 28% from a year ago in volume (17,485 mt) and 14% in value ($143.8 million).

• Colombia’s ban on imports of U.S. beef originating from states with cases of highly pathogenic avian influenza (HPAI) in dairy cows continues to take a toll on export volumes, with June exports plunging 77% from a year ago to just 91 mt. Exports to Colombia were strong in the first quarter but have been restricted since April, pushing first-half exports 22% below last year at 2,224 mt, while export value fell 13% to $13.4 million. Fortunately, Colombia is the only trading partner to impose HPAI-related restrictions on U.S. beef.

• Beef export value equated to $459.21 per head of fed slaughter in June, up 13% from a year ago. The January-June average was $418.37 per head, up 6% from the first half of 2023. Exports accounted for 15% of total June beef production and 12.8% for muscle cuts only, up from 14.3% and 12%, respectively, a year ago. The January-June ratios were 14.1% of total production (down from 14.4% a year ago) and 11.8% for muscle cuts (down from 12.2%).

Mexico suspended imports of all Brazilian poultry in mid-July following a finding of Newcastle virus, which contributed to high poultry and turkey prices in the market. In early August, Mexico resumed imports of Brazilian poultry from all states except Rio Grande do Sul.  

Korea’s demand for U.S. pork remained very robust in June, with exports climbing 20% from a year ago to 17,327 mt, while export value increased 30% to $64.2 million. January-June exports to Korea soared 33% above last year’s pace at 135,419 mt, while value was 38% higher at $459.6 million (by comparison, when pork export value to Korea peaked in 2018, the first-half value total was $386.5 million). The U.S. industry has capitalized on higher pork consumption in Korea but is also capturing larger market share. U.S. share of Korea’s imported pork market climbed from 26% in the first half of 2022 to 38% this year.

Fueled by gains in Honduras and Costa Rica and a steady performance in Guatemala, June pork exports to Central America totaled 10,371 mt, up 2% from a year ago. But export value increased impressively, climbing 14% to $34.3 million. Through the first half of the year, exports to the region increased 21% from a year ago to 74,532 mt, while value soared 31% to $231.1 million. First-half exports increased year-over-year to all Central American markets and shipments to Honduras, Guatemala, Costa Rica, El Salvador and Nicaragua were on a record pace.  

Other January-June results for U.S. pork exports include:

• June pork exports to the Caribbean increased 14% from a year ago to 8,408 mt, while value climbed 19% to $25.8 million. Despite heightened competition from Brazilian pork, June exports to the Dominican Republic increased 11% from a year ago to 6,280 mt, valued at $18.4 million (up 17%), while exports to Cuba nearly quadrupled to 824 mt. Through June, exports to the Caribbean were 3% below last year’s record pace at 63,691 mt, with value steady at $183.4 million. 

• Following several months of strong gains, pork exports to Colombia took a step back in June, falling 17% from a year ago to 7,612 mt, while value dropped 7% to $22.2 million. But shipments to Colombia remained on a record pace through June, climbing 33% year-over-year in volume (56,927 mt) and jumping 44% in value ($157.5 million). Weekly export data also indicate shipments rebounded in July, after slowing in part due to market access uncertainty related to storage condition labeling.

• Pork exports to Canada reached 17,226 mt in June, up 3% from a year ago, while value increased 9% to $72.7 million. This pushed first-half export volume even with last year at 102,702 mt, while value increased slightly to $410.4 million.

• Malaysia continues to emerge as a promising destination for U.S. pork, with June exports up 24% from a year ago to 576 mt, valued at $1.8 million (up 18%). January-June exports to Malaysia increased 50% to a record 4,065 mt, while value climbed 43% to $12.6 million. The U.S. industry received good news last month when an additional U.S. pork plant was approved for export to Malaysia without the need for an on-site audit, which could clear the way for an increased U.S. presence in the market.

• With the persistently weak yen making Japan a more price-sensitive market, pork exports to Japan took a step back in June. Shipments fell 12% from a year ago to 28,498 mt, while value was down 10% to $118.7 million. January-June exports to Japan were down modestly from a year ago, falling 3% in volume (181,550 mt) and 2% in value ($737 million). The Bank of Japan’s recent interest rate increase and signals of a possible U.S. rate cut in coming weeks provided some positive movement for the yen, which has strengthened from 160 per U.S. dollar in mid-July to around 145 this week. Inventories of imported pork at the end of June were down 14% from last year, signaling the potential for larger imports in the second half of the year.

• Pork export value equated to $66.53 per head slaughtered in June, up slightly from a year ago. The January-June average was $66.54 per head, up 4% from the first half of 2023. Exports accounted for 29.4% of total June pork production and 25.4% for muscle cuts only, down from the very high year-ago ratios of 31% and 26.6%, respectively. For January through June, exports accounted for 30.5% of total production (up from 29.9% a year ago) and 26.3% for muscle cuts (up from 25.6%).

Lamb export volume trends higher in June

June exports of U.S. lamb totaled 191 mt, up 26% from a year ago, although value declined 16% to $827,000. June exports increased to Mexico, the Bahamas and the Philippines, and were steady to Japan. Through the first half of 2024, lamb exports increased 12% in volume (1,485 mt) and 19% in value ($8 million), with shipments trending higher to the Caribbean, Mexico, the ASEAN region, Canada and Taiwan, while exports were steady to Japan.

Complete January-June export results for U.S. pork, beef and lamb are available from USMEF's statistics web page.

For questions, please contact Joe Schuele or call 303-547-0030.

NOTES:

• Export statistics refer to both muscle cuts and variety meat, unless otherwise noted.

• One metric ton (mt) = 2,204.622 pounds.

• U.S. pork and beef currently face retaliatory duties in China. In February 2020, China announced a duty exclusion process that allows importers to apply for relief from duties imposed in response to U.S. Section 301 duties. When an application is successful, the rate for U.S. beef can decline to the MFN rate of 12% and the rate for U.S. pork can decline to 37% (the MFN rate plus the 25% Section 232 retaliatory duty, which remains in place).