According to data released by the USDA and compiled by the U.S. Meat Export Federation (USMEF), April’s beef exports were 10% below last year’s levels at 111,416 metric tons (MT), while value fell 18% to $859.5 million. Through the first four months of 2023, beef exports were down 8% in volume (437,910 MT) and were 21% lower in value ($3.21 billion) compared to last year’s record pace.
USMEF President and CEO Dan Halstrom cited possible contributing factors including inflation and a tightening supply of U.S. beef that would make it difficult to keep pace with last year’s record exports. However, Halstrom said that the rebound in travel and tourism, especially in Asia, is providing increased opportunities in the food service sector that will provide some staunch support for beef demand, as well as the easing of inflationary pressure on consumers’ discretionary income in some countries.
Tentative West Coast labor contract proposed
Halstrom said that on a beef and pork export front, it is crucial for West Coast port terminal operators to reach a contract agreement with longshoremen. “While there has been no formal strike or lockout, sporadic work stoppages on the West Coast are a major concern for exporters and their international customers,” he said. “This is especially true for companies shipping chilled beef or pork to Asia." For that business, reliability and timeliness are paramount.
There has been some development on this critical issue. On June 14, the Pacific Maritime Association and the International Longshore and Warehouse Union announced a tentative agreement on a new six-year contract covering workers at all 29 West Coast ports. Acting U.S. Secretary of Labor Julie Su played an important role in reaching that agreement. While details of the agreement have not yet been released and it still needs to be ratified by both parties, many industry stakeholders are breathing a sigh of relief that the first step has been taken.
“This is tremendous news for U.S. red meat exporters and their overseas customers,” said Halstrom. “While the ratification process will take some time, the tentative agreement will restore stability and confidence in the performance of the West Coast ports, and this is absolutely essential for our industry.”
Read the full USMEF report.
