BEEF AT HOME AND ABROAD

from the U.S. Meat Export Federation

U.S. beef exports posted another strong performance in February, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF), led by excellent value growth in key Asian and Latin American markets. Pork exports trended lower year-over-year, as larger shipments to Mexico and Japan did not offset the continued decline in demand from China/Hong Kong. Lamb exports continued to gain momentum, reaching the highest monthly value since 2014.

“Rarely have we seen so many outside forces creating headwinds for U.S. meat exports and such uncertainty in the global marketplace,” said USMEF President and CEO Dan Halstrom. “Yet consumer demand for high-quality beef, pork and lamb has proven resilient, and USMEF sees opportunities for further growth in both established and emerging markets.”

Beef exports totaled 108,501 metric tons (mt) in February, up 5 percent from a year ago, while value climbed 35 percent to $904.4 million. Through the first two months of the year, exports increased 9 percent to 227,567 mt, while value soared 46 percent to $1.93 billion.

“Broad-based growth has become a recurring theme for U.S. beef exports, as international demand has never been higher and global supplies remain tight,” said USMEF President and CEO Dan Halstrom. “We anticipated a lift from COVID-related foodservice restrictions being eased in many destinations. This materialized late last year and in early 2022, although conditions still vary by country. While lockdowns in China and Hong Kong are certainly a setback for foodservice demand, those are the main exceptions as most countries have shifted to more of a living-with-COVID approach.”

Demand for U.S. pork did not fare as well in the first two months of 2022, as logistics challenges were compounded by lower-priced offerings from competitors. Like the U.S., these suppliers are shipping significantly lower volumes to China/ Hong Kong, which has pushed more product into other markets at reduced prices.

February pork exports were 198,539 mt, down 17 percent from a year ago, while export value fell 14 percent to $541.3 million. Through February, exports were also down 17 percent in volume (407,347 mt) and 14 percent in value ($1.1 billion).

“European hog prices jumped sharply in March, climbing about 35 percent compared to February,” Halstrom explained. “While this came too late to impact our February export results, it could lead to more favorable market conditions going forward.”

Beef export value approaches $2 billion after just two months

Following record-large January shipments, beef export volume to leading market South Korea slowed in February but value climbed significantly. February exports to Korea totaled 19,033 mt, down 19 percent from a year ago, but value still increased 17 percent to $197.8 million. Through February, exports to Korea are off to a torrid start in 2022, climbing 8 percent in volume (48,611 mt) and already breaking the $500 million mark in value ($514.2 million, up 57 percent). Strong retail demand for U.S. beef continues and there is growing optimism for foodservice once Korea works through the current Omicron wave. Although restaurant restrictions have been minimized, consumers still opted to dine at home as COVID cases surged in February and March.

February exports to Japan were down 5 percent to 23,553 mt, but value jumped 21 percent to just under $200 million. Through the first two months of the year, exports to Japan fell slightly (46,489 mt, down 1 percent) but value increased an impressive 26 percent to $381.6 million. Strong growth in variety meat exports (tongues, skirts and hanging tenders) mostly offset the slowdown in muscle cut volume rates. Through the Japan-U.S. Trade Agreement, Japan’s duty on muscle cuts notched down to 24.1 percent on April

while tongues edged lower to 3.8 percent and skirts/hangers to 4.2 percent. Fortunately an agreement has been reached to modify Japan’s safeguard, pending parliamentary approval in Japan, which will minimize the future risk of U.S. beef being subjected to a higher snapback duty rate.

Beef exports to Taiwan got off to a slow start in 2021 before setting a new annual value record. Demand has been far stronger in early 2022, with February exports up 39 percent to 5,307 mt, while value soared 85 percent to $64.3 million. Through February, exports to Taiwan increased 60 percent from a year ago to 12,221 mt and more than doubled in value to $147.4 million (up 101 percent). It is also USMEF’s understanding that shipping delays in late 2021 contributed to the larger volumes in the 2022 data.

Other January-February results for U.S. beef exports include:

Since U.S. beef gained meaningful access to China in early 2020 through the Phase One Economic and Trade Agreement, beef exports to China/Hong Kong have continued to build momentum. Through February, exports to the region increased 56 percent from a year ago to 39,492 mt, with value up 87 percent to $374.8 million. Exports in the first two months of the year averaged 19,746 mt, 11 percent below the monthly average volume in the second half of 2021. But exports are expected to increase seasonally and as China gets through its current COVID challenges.

Coming off a record performance in 2021, beef exports to Central America continue to trend higher, led by outstanding growth in Guatemala, Panama and Honduras and continued strong exports to Costa Rica. Through February, exports to the region were up 23 percent to 3,831 mt, valued at $28.1 million (up 50 percent).

Strong demand in Jamaica, the Dominican Republic and the Bahamas pushed beef exports to the Caribbean 32 percent higher than a year ago at 3,669 mt, while value nearly doubled to $32.8 million (up 98 percent). While still below pre-COVID levels, recent results reflect a rebound in tourism in the region.

Led by strengthening variety meat shipments to Egypt and muscle cut growth in Qatar, beef exports to the Middle East increased 14 percent to 12,567 mt. Export value climbed 28 percent to $47.6 million.

Beef exports to Colombia were up 50 percent in volume (1,952 mt) and 58 percent in value ($7.8 million), contributing to 12 percent value growth into South America (to $23 million).

In addition to rebounding demand in Egypt, larger shipments to Japan, Korea, China/Hong Kong, Gabon, Chile and Vietnam fueled a 7 percent increase in beef variety meat exports (to 47,817 mt), with value climbing 39 percent to $195.6 million.

February beef export value equated to $445.95 per head of fed slaughter, up 29 percent from a year ago. The JanuaryFebruary average was $474.87 per head, up 45 percent. Exports accounted for 14.1 percent of total February beef production and 11.6 percent for muscle cuts, down from the year-ago ratios of 14.4 percent and 12.3 percent, respectively. Through February, exports accounted for 14.7 percent of total production and 12.5 percent for muscle cuts – each up about one percentage point from a year ago.

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University of California Cooperative Extension and University of California Davis Veterinary Medicine is excited to share with you the recordings from their March 2022 webinar series. This series was cohosted by University of California Cooperative Extension advisors Tracy Schohr, Grace Woodmansee, Rebecca Ozeran and specialist Gabriele Maier, DVM.

“Last month hundreds of cattle producers joined us for evening webinars that took a deep dive into a cross section of important cattle health topics,” stated co-host Tracy Schohr, UC Cooperative Extension livestock and natural resources advisor in Plumas, Sierra and Butte counties. “We recognize cattle producers have busy lives with off-ranch careers and family responsibilities that can make it difficult to attend inperson continuing education events so we hosted the online webinar series and have recorded them so more producers can take advantage of these comprehensive resources on cattle health and production.”

The video recordings and additional resources from the webinar series can be found at ucanr.edu/sites/Rangelands/ CattleHealth/. The video topics include:

Whole Herd Health Plans and Vaccination Schedules with featured speakers: Maier, and Tom Talbot, DVM, a large animal veterinarian in Bishop.

Herd Bull Health, Diseases and Injuries with featured speaker: Bret McNabb, DVM.

Pinkeye in Cattle with featured speaker: John Angelos, DVM.

Toxic Plants and Livestock with featured speaker: Robert H. Poppenga, DVM, from the California Animal Health and Food Safety Laboratory.

Why Did it Die? California Animal Health Food Safety Laboratory with featured speakers: Maier and Katherine Watson, DVM, from the California Animal Health and Food Safety Laboratory.

“The past two years, Cooperative Extension has pivoted the way we have shared information with livestock producers with the cancellation of in person events, allowing us to focus on new outreach tools,” Maier said. “We saw tremendous engagement with our live online Beef Quality Assurance (BQA) trainings that lead the team to host the series this March focusing on topics attendees had expressed an interest in during the BQA Training. The videos provide a resource for livestock producers to continue to improve the health of their cattle and increase beef production on their ranch.”

For questions or suggestions on future topics please contact Tracy Schohr, livestock and natural resources advisor for Plumas, Sierra and Butte counties at tkschohr@ucanr.edu or (916) 716-2643.