January exports of US beef and veal were significantly higher than the large totals of a year ago while pork exports were steady in volume and increased in value, according to data released by the USDA and compiled by the US Meat Export Federation.
Beef exports totaled 105,486 tonnes in January, up 9% from a year earlier, while export value surged 21% to $624.4 million.
Beef and veal exports accounted for 12.4% of total beef production in January, up slightly from a year ago, the USMEF said. For muscle cuts only, the percentage exported increased from 9.5% to 10.1%.
Beef export value averaged $293.06 a head of fed slaughter, up 14% from a year earlier, the USMEF said.
For muscle cuts only, beef exports reached 80,495 tonnes, up 15%, and valued at $555.7 million, up 23%.
Beef variety meat volume fell 5% to just under 25,000 tonnes, but value increased 7% to $68.8 million.
ASIAN MARKETS CONTINUE TO SHINE FOR BEEF
US beef continued to gain momentum in the Japanese market, with January exports increasing 23,968 tonnes, or 7%, from a year ago in volume and $148.6 million, or 19%, in value. This included a 30% increase in chilled beef exports to 12,411 tonnes, valued at $92.4 million (up 38%).
Frozen beef exports declined 13% in volume, or 8,141 tonnes, but increased only $33.1 million in value.
Frozen US beef entering Japan is subject to a 50% safeguard tariff, which is scheduled to revert to 38.5% on April 1, the beginning of the new Japanese fiscal year.
Benefiting from a bilateral trade agreement with Japan, frozen beef from Australia is subject to a duty of 27.2%. This rate is to decline to 26.9% on April 1.
PORK EXPORTS STEADY
January pork and pork variety meat exports totaled 203,488 tonnes, steady with last year’s strong volume, while export value increased 7% to $545.6 million.
Pork exports accounted for 24.7% of total pork production, down from 26.2% from a year ago. For muscle cuts only, the percentage exported declined slightly to 21.5%, the USDA data showed.
Pork export value averaged $50.93 per head slaughtered, up 1% from a year earlier.
Pork export volume increased 5% to 164,189 tonnes, while value climbed 9% to $454.2 million.
Pork variety meat exports dropped 16% in volume, or 39,299 tonnes, but still managed a 2% increase in value to $91.5 million.
Building on a record 2017 performance, January pork exports to Mexico increased 1% from a year ago in volume, or 72,997 tonnes, and 4% in value, or $133.5 million. Mexico continues to be a mainstay market for US hams and is the second-largest destination behind China/Hong Kong for pork variety meat.
CATTLE, BEEF RECAP
Fed cattle sold Wednesday on the Livestock Exchange Video Auction at a steady $126 per cwt.
Cash sales last week were at $126 to $127 per cwt on a live basis, steady with last week. Dressed-basis trading was reported at $204 to $204.50, steady to down $0.50.
The USDA’s choice cutout Monday was down $0.24 per cwt at $223.90, while select was up $0.23 at $217.49. The choice/select spread narrowed to $6.41 from $6.88 with only 64 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Friday, was $143.34 per cwt, down $0.84. This compares with Monday’s Mar settlement of $142.17, down $0.35.