US beef exports to East Asia in 2022 again are on record pace after a record year in 2021, said the US Foreign Agriculture Service in a release Tuesday.
Despite economic uncertainties because of the COVID-19 pandemic, continued global supply chain challenges and a competitive global beef market, US beef exports to East Asia, in value and volume, were outstanding in the first half of 2022, the FAS said. East Asia’s relatively robust middle class has supported the demand for high-quality beef, and a developed e-commerce retail sector has provided flexible avenues for suppliers to promote beef products during the pandemic.
HIGHLIGHTS OF US BEEF EXPORTS TO EAST ASIA
East Asia is the top regional market destination for US beef exports, the FAS said. During the first three quarters of 2022, exports to East Asia, including South Korea, Japan, China/Hong Kong and Taiwan, were a record $6.6 billion, exceeding last year’s $5.4 billion, a 22% increase in value basis and a 6.4% increase in volume.
South Korea: Export value in the first three quarters of 2022 surpassed $2.1 billion, potentially reaching an annual $2.8 billion, the FAS said. Strong 2022 export performance comes on the heels of 2021’s record-setting year, when the US exported $2.4 billion of beef and beef products to South Korea, surpassing Japan as the US’ top beef market.
Japan: In 2021, the US exported $2.4 billion of beef and beef products to Japan, surpassing the $2 billion mark for the second time, the release said. From January – September, exports were up 7.9% in value, and shipment volumes have remained steady.
Notably, US exports of frozen boneless beef were up 56.0% in value and 27.05 in volume.
China/Hong Kong: US beef exports to China/Hong Kong surpassed $2 billion for the first time in 2021, the FAS said. 2022 exports reached $2.0 billion by Sep. 30, a 34.1% increase during the same period last year; exports on a volume basis increased 23.2%.
China primarily imports frozen boneless beef, which supplies the retail sector, and South American suppliers account for more than two-thirds of the market share in value and volume, the FAS said. However, there has been strong growth in the fresh or chilled market, which primarily supports China’s growing hotel, restaurant and institutional sector.
Taiwan: Beef exports to Taiwan continue to thrive after a record year in 2021 ($662.7 million), the release said. September 2022 data shows exports were up 28.7% in value and 10.7% in volume.
Temporary reductions in beef tariffs in 2021-22 have been advantageous to US exporters while Taiwan’s reopening the country to foreign visitors is a promising sign for the HRI sector.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $156.15 to $158.70 per cwt, compared with last week’s range of $156.04 to $157.34. FOB dressed steers, and heifers went for $244.02 to $247.05 per cwt, versus $243.79 to $249.01.
The USDA choice cutout Wednesday was down $0.63 per cwt at $279.41 while select was up $1.64 at $247.28. The choice/select spread narrowed to $32.13 from $34.40 with 75 loads of fabricated product and 26 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were steady at $1.90 to $2.10 a bushel over the Mar futures and for southwest Kansas were unchanged at $1.00 over Mar, which settled at $6.82 3/4, up $0.08.
No cattle contracts were tendered for delivery Wednesday.
The CME Feeder Cattle Index for the seven days ended Tuesday was $176.08 per cwt up $0.35. This compares with Wednesday’s Jan contract settlement of $183.47, up $0.37.