Agricultural News
Beef Exports Are Jumping, Helping Propel Higher Cattle Prices as a Result
Thu, 15 Apr 2010 5:55:52 CDT
Excellent demand for US Beef in the global market has helped cash cattle prices rise this spring, with slaughter cattle, yearlings, stockers and calves all enjoying more than a normal seasonal rally. On today's Beef Buzz, we look at the latest beef export figures for the month of February, which show a significant jump in both the volume of beef sold, as well as the value of the beef muscle cuts and variety meats going into the international market.
Here's a portion of a release from the US Meat Export Federation that makes up the basis of our Beef Buzz for today, as heard on great radio stations across Oklahoma on the Radio Oklahoma Network. Click on the Listen Bar at the bottom of this page for our Beef Buzz on our Beef Export Success.
Overall beef exports for the first two months of 2010 are up a solid 9 percent in volume to 144,439 metric tons (318.4 million pounds) valued at $500.5 million a 10 percent increase. Importantly, these gains are coming as the United States' No. 1 destination for beef exports, Mexico, continues to suffer from the economic downturn. In January and February, Mexico purchased 39,364 metric tons (86.8 million pounds) of U.S. beef valued at $123.9 million a 23 percent drop in volume and a 31 percent drop in value versus the first two months of 2009.
"We're responding to a greater diversification in the beef markets," said Seng. "We are continuing to focus considerable resources in Mexico on programs that include meat buyer and retailer training, marketing and educational efforts for consumers, and we are confident that this market will rebound as Mexico's economy recovers. Of course, we are simultaneously pursuing opportunities in other markets to help offset this temporary downturn."
Mexico accounted for 38.6 percent of the volume of U.S. beef exports in the first two months of 2009 compared to 27.3 percent so far this year. The Mexican peso spent most of January and February at around 13 pesos to the dollar but the peso has strengthened through March and is now closer to 12 pesos to the dollar, helping to make U.S. beef more affordable.
Despite the fall in exports to Mexico, U.S. beef exports increased in the first two months of 2010 because of markets like:
Canada the No. 2 beef export market is up 19 percent in volume to 21,624 metric tons (47.7 million pounds) for the first two months of the year. Values are up 27 percent to $92.7 million.
Middle East led by Egypt, the Middle East is up 28 percent in volume to 15,267 metric tons (33.7 million pounds) valued at $25.3 million, a 50 percent jump. "The Middle East continues to grow as a top destination for U.S. beef muscle cuts," said Daley, noting that the region imported 5,488 metric tons (12.1 million pounds) valued at $14.9 million, an increase of 162 percent in volume and 79 percent in value.
Japan total beef exports are up 45 percent in volume to 11,660 metric tons (25.7 million pounds) valued at $58.6 million a 35 percent jump. "Even with market access limitations and months of short supply of cattle less than 21 months of age, Japan continues to be a significant growth market," said Daley.
Russia 6,495 metric tons of beef (14.3 million pounds), a 63 percent increase, valued at $11.2 million, a 236 percent spike compared to 2009. Muscle cut exports were 1,270 metric tons, up from just 109 metric tons last year. Daley notes that current data show five consecutive weeks of muscle cut exports exceeding 700 metric tons (1.5 million pounds) per week, with strong exports expected to continue. As further evidence of recovery in Russian demand, Australia's exports to Russia were up 79 percent in the first quarter of 2010.
Taiwan volumes are up 109 percent to 5,750 metric tons (12.7 million pounds) valued at $30.8 million, a 132 percent jump. "The U.S. is dominating Taiwan's high-value beef market, accounting for more than three-quarters of Taiwan's chilled beef imports," said Daley. Imports from the U.S. accounted for 46 percent of Taiwan's total first-quarter beef imports on a value basis, according to Taiwan's import data. USMEF has worked aggressively on the relaunch of U.S. bone-in beef and to reassure consumers of the safety of U.S. beef.
Greater China plus Vietnam the third-largest market for U.S. beef muscle cuts this year, growing 36 percent in volume and 38 percent in value to 15,227 metric tons (33.6 million pounds) valued at $54 million. February exports of 9,082 metric tons (20 million pounds) of muscle cuts alone set a new record, making the region the second-largest volume destination for U.S. beef for the month. Variety meat exports to the region are negligible.
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