Soaring Demand worldwide

U.S. beef values reach new heights in the international marketplace.

By Bob Cervera Photo courtesy of U.S. Meat Export Federation

Despite a shaky global economy, record levels of U.S. beef continue to pack container ships and delivery trucks around the world. Export volumes and values have never been higher, and it’s driving real dollars back to the beef industry.

On stage March 25 during Cattle Raisers Convention & Expo, two experts explained how international demand supports ranchers at home. John Hinners, industry relations senior vice president for U.S. Meat Export Federation, reported the nation’s beef exports generated more than $10.5 billion in 2021 — a record number. Total volume reached more than 1.4 million metric tons.

These values represented about 15% of total U.S. beef production and added more than $400 per fed animal.

What is driving the increase? The value is in the brand.

“Anytime you have a brand, you have a promise,” Hinners said. “When you look at U.S. beef, we’ve got a promise on many attributes. It is going to taste good. It is safe. It is high quality and tender. Consumers know the quality and consistency is always going to be there.”

Joining Hinners was Jason Bagley, Texas Beef Council vice president of beef resources, who said meeting consumer needs has been central to export success.

John Hinners

U.S. Meat Export Federation Jason Bagley

Texas Beef Council

“There are a lot of unknowns in the world right now,” Bagley said. “But what we do know is that consumer demand continues to be strong, and as long as markets are open, we are going to continue trying to work in those markets.”

An uptick in variety meat sales, more than $1 billion in 2021, has played a major role in growing export values. The U.S. leads global exports for variety meats.

Less waste means more profit, and exports help take care of marketing an entire beef carcass. Meats that

American consumers don’t typically consume in large quantities, like the tongue, tripe, lips and heart, sell at higher markups internationally.

“Markets around the world desire some of these variety meats, so we try to add value in that aspect,” Hinners said.

Moving ahead

Starting out in 2022, U.S. Meat Export Federation reports the growth curve holding strong.

In March, beef exports totaled 126,285 metric tons, up 1% from a year ago and the third largest on record, while value climbed 33% to a record $1.07 billion. First quarter exports increased 6% to 353,852 metric tons, valued at more than $3 billion — up 41%.

Japan has long been known as a top importer for U.S. beef, but now the country’s top-tier position is more competitive. Countries such as China, South Korea and Taiwan are joining rank.

“More than $6 billion dollars in products of U.S. beef went to just three markets: Japan, China and Korea,” Hinners said of 2021 trends. “Those markets weren’t always open to U.S. beef, so it’s exciting to see that product flow into these countries.”

Other markets including Central and South America, Africa and the Caribbean, are gaining traction, too. Diversity in exports helps secure U.S. beef against the impact from economic downturns in a single market.

“These up-and-coming markets are not the big players today, but they could be,” Bagley said. “We’re really excited to not have all of our eggs in one basket, and to be entering lots of different markets.”

During challenging economic times, both domestically and abroad, it is reassuring to see foreign markets that are hungry for U.S. beef. Looking ahead and positioning U.S. beef as the leading brand in the global marketplace will remain a top priority for organizations like U.S. Meat Export Federation and Texas Beef Council.

Where will exports go from here? Hinners said the immediate future looks bright.

“I think we are going to see another year of record exports, if we do not have a major meltdown in our ports,” he said. “The demand is there for red meat products.” T C

Bob Cervera is a writer for Grant Company based in St. Joseph, Missouri.

EXPORT VALUE, PER FED HEAD SLAUGHTERED

Source: USDA Foreign Agricultural Service, USDA National Agricultural Statistics Service and U.S. Meat Export Federation

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