Export volume of U.S. beef ran at a higher pace in October 2022 than one year ago, while export beef value kept rolling toward a record pace for the year.
U.S. Meat Export Federation (USMEF) reports showed total export value for 2022 hitting $10.05 billion.
Slopes in the currency market overseas took a toll on export value for October, as the Asian markets took a hit, pinching customers’ ability to buy U.S. beef products.
The demand for U.S. beef in China continues to hold strong, in spite of that country’s cautious approach to COVID-19 spread. The volume of U.S. beef to China jumped 21% over 2021 levels, making it the top destination for U.S. exported beef.
Lockdowns and limits on some travel have been increasing in some of the country’s larger cities, but the demand pushed total volume to 26,170 metric tons (MT). Value of beef going to China increased 19% to $240.8 million, and 10-month total value (January to October) for that nation is up 32% to $2.23 billion. By contrast, other key Asian markets have been slowed by currency issues, explained USMEF President and CEO Dan Halstrom.
“The October results were remarkable considering the headwinds facing U.S. beef, especially in our large Asian markets. Key currencies such as the Japanese yen and Korean won had sunk to their lowest levels in decades versus the U.S. dollar, which obviously affected importers’ buying power. COVID lockdowns in China were also a concerning factor, especially for buyers in the food service sector. But despite all that, U.S. beef still performed very well in Asia and achieved solid growth in North America and the Middle East. With some recent improvement in exchange rates, beef exports are well positioned to surpass last year’s records.”
South Korea remained the highest value destination for U.S. beef exports, with an increase of 20% to $2.32 billion through October, with annual volume to that country also up 4% from a year ago. South Korea faced its own challenges in the fall as a labor strike by truckers slowed import transport throughout the country.
Japan saw similar currency problems to slow export buying, but the Japanese market remains a top three destination both in value and volume for U.S. beef. The Japanese demand for beef variety meats, mostly tongue and skirt, improved after two months of decline. Through October, beef and beef variety meat exports to Japan totaled 260,318 MT, down 4% from a year ago, while export value increased 5% to just over $2 billion.
