Record Meat Exports Keep Domestic Soybean Demand Strong
Beef, Pork Exports Set New Records in 2012
The Ohio Soybean Council and soybean checkoff have worked on a variety of projects to promote U.S. meat overseas. As international demand for U.S. meat products continue to grow, so will the domestic demand for high quality soybean meal. Beef and pork exports remain vital to farmers because of the direct impact on soybeans.
U.S. beef and pork exports set new value records in 2012, topping highs set in 2011, according to end-of-year statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
The achievement was more significant in light of challenging export conditions that included non-science-based trade barriers in several key markets and an anemic economy in certain regions.
“The export markets are a critical profit center for the industry at a time when the industry is challenged by high input costs and, on the beef side, a historically low herd size,” said Philip Seng, USMEF president and CEO. “2012 saw record highs for per-head export values for both pork and beef at a time when those returns were sorely needed by producers.”
Pork exports set both volume and value records last year, reaching 2.26 million mt – up a fraction from the record set in 2011 – valued at $6.3 billion, a 3.5 percent increase over the prior year’s record. The per-head export value of U.S. pork exports set another record in 2012, reaching $55.87, up 1 percent from 2011. For the year, exports accounted for 27 percent of total pork production and 23.4 percent of pork muscle cut production versus 27.5 percent and 23 percent, respectively, in 2011.
The value of beef exports for the year rose 2 percent to a record-high $5.51 billion on 12 percent lower volumes (1.13 million mt). The per-head export value for beef hit $216.73, a $10.36 increase over 2011. Contributing to that was a new monthly record value of $242.65 set last December. For the year, U.S. beef exports accounted for 12.7 percent of total beef production and 9.8 percent of muscle cut production. This compares to 14.2 percent and 11 percent, respectively, in 2011.
Looking ahead, the outlook for 2013 appears positive for both the U.S. beef and pork industries, according to Seng.
“There are many factors that go into projecting 12 months into the future, but as we continue to focus our efforts on markets that offer the greatest potential for growth, we are optimistic that 2013 will give us the opportunity to maintain the momentum we have seen in pork exports while rebounding in beef,” he said. The recent opening of Japan to U.S. beef under 30 months of age contributes to a projected growth in beef exports of 4 percent in volume (to 1.17 million mt) valued at more than $6 billion. That total may be tempered if issues with exports to Russia are not resolved.
The projection for pork calls for steady to slight growth, with exports likely to still exceed 2.2 million mt valued at more than $6 billion with key risk factors including Russia and domestic production in China. On the bullish side, U.S. pork is an extremely versatile, high quality protein at a great value that will gain market share in key export markets. Continued growth to top volume market Mexico is also expected to boost the bottom line.
Top 5 Value Export Markets for 2012
- Japan – $1.986 billion
- Mexico – $1.126 billion
- China/Hong Kong – $886.2 million
- Canada – $855.7 million
- South Korea – $421.1 million
- Canada – $1.177 billion
- Japan – $1.03 billion (surpassing the $1 billion mark for the first time since 2003)
- Mexico – $822.4 million
- South Korea – $582 million
- Hong Kong – $339.5 million