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 metric tons (mt)— up a fraction from the record set in 2011 — valued at $6.3 billion, a 3.5% 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% from 2011. For the year, exports accounted for 27% of total pork production and 23.4% of pork muscle cut production versus 27.5% and 23%, respectively, in 2011.
The value of beef exports for the year rose 2% to a record-high $5.51 billion on 12% 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 in December. For the year, U.S. beef exports accounted for 12.7% of total beef production and 9.8% of muscle cut production. This compares to 14.2% and 11%, 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% 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.