U.S. Beef Exports Continue at Record Pace in 2022

Published 2022년 3월 31일

Export data for January 2022 show that U.S. beef exports are keeping up the high pace from 2021. In January, exports were up 17% YoY and the 288 million lbs exported were an all-time high for the first month of the year. Exports have grown YoY despite declines in exports to the markets of Mexico, Hong Kong and Canada.

Beef export growth continues despite lower North American demand

As previously reported, U.S. beef exports broke all records in 2021, when beef exports surpassed USD 10 billion in value and 3.086 billion lbs in quantity. Trade data for Jan 2022 shows that the U.S. has been able to keep up the pace in the new year. At 288 million lbs, the exported volume for Jan 22 is a new record for the first month of the year and the volume represents a 17% YoY growth while it is 21% above the five-year average.

The increase in exports happened despite weaker trade with Mexico, Hong Kong and Canada compared to Jan 2021 as exports to Mexico fell 37%, Hong Kong 49%, Canada 24% YoY. In early Jan 2022 Canadian beef got banned from important import markets such as China, Philippines and South Korea out of fear of mad cow disease, which lowering the need for beef imports in the North American country as great quantities were prevented from being shipped abroad.

High growth in exports to Asian markets

Export growth was recorded in markets such as Taiwan, South Korea and China, where exports grew 78%, 39% and 114% respectively. As for the export to South Korea, U.S. Meat Export Federation (USMEF) reports that the demand is shifting from retail to foodservice as restrictions on social distancing and opening hours are loosened. In addition, the provisions of the U.S.-Korea trade agreement will continue to work in favor of U.S. beef exporters, as tariffs on imports of U.S. beef muscle cuts will decline from 13.3% to 10.7% in 2022. Moreover, the quantity safeguard is increasing at a compound 2% rate to 330,000 mt in 2022 while after 2026, neither tariffs nor quantity safeguard will apply. In China, beef imports are expected to grow at a lower rate than the 87% YoY increase in 2021 as China’s domestic meat production rebound to pre-Covid levels. The increase in exports to Taiwan is partly explained by delayed shipments that are usually delivered before New Year and exports are not expected to remain at similar levels in coming months.

The export volume forecast for Q1 was raised by 30 million lbs to 830 million lbs on account of the January performance. Later in the year, beef exports are expected to slow down on account of lower demand from North America and increasing competition with New Zealand and Australia. USDA therefore maintains their forecast of a 3.300 billion lbs beef export volume for 2022.