2021 Red Meat Export Outlook Remains Strong Despite Drop in February
February exports of U.S. pork and beef remained below the rapid pace established in early 2020, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Still, exports were consistent with USMEF's February projections. 2021 beef exports are expected to increase substantially year-over-year, while pork exports are projected to narrowly surpass the 2020 record.
"While February exports were in line with expectations, the results don't fully reflect global demand for U.S. red meat," Dan Halstrom, USMEF president and CEO, said in a USMEF report. "Logistical challenges, including congestion at some U.S. ports, are still a significant headwind and tight labor supplies at the plant level continue to impact export volumes for certain products - including some variety meat items and labor-intensive muscle cuts."
Export demand has remained solid despite logistical challenges and other pandemic-related obstacles, USMEF reports. Continued international demand, along with robust domestic business, contributed to stronger cutout values in the first quarter, which were up an average of 27% year-over-year for pork (nearly $90/cwt) and 4% for Choice beef ($224/cwt).
The flow of exports through U.S. ports is showing some gradual improvement as COVID-impacted crews move closer to full strength, Halstrom said. However, it still remains a serious concern for the U.S. agricultural sector.
"USMEF greatly appreciates the members of Congress and ag industry representatives who have worked to bring more attention to this situation, and the efforts of maritime regulators to address shipping practices," Halstrom said in the report.
Pork Exports Drop in February From a Year Ago
February pork exports were down 12% from a year ago at 239,240 metric tons (MT), valued at $629.4 million or down 13%, USMEF reports. For muscle cuts only, exports fell by the same percentages to 203,526 MT valued at $548 million.
Through February, pork exports were 11% below last year's pace at 487,896 MT, valued at $1.27 billion, down 13%. Pork muscle cut exports were also down 11% to 411,760 mt, valued at $1.1 billion and down 14%.
Pork exports set new records in February in the Dominican Republic, Guatemala, El Salvador and Costa Rica and were very strong to the Philippines and Colombia, USMEF said. As anticipated, pork exports to China/Hong Kong trended lower than the record volumes shipped in 2020, but the region continues to be the largest destination for U.S. pork.
Beef Exports See Decline in Variety Meat Exports
Beef exports totaled 103,493 MT in February, down 8% from a year ago, valued at $669.5 million, down 2%. This was due mainly to a decline in variety meat exports, as beef muscle cuts were steady with last year in value at $597.9 million on a volume of 82,530 MT or down 3%.
Through February, beef exports were 5% below last year's pace at 208,540 MT, valued at $1.32 billion and down 2%. Beef muscle cut exports were down 1% to 163,928 MT and held steady in value at $1.18 billion.
Beef exports to South Korea are off to a very strong start in 2021, USMEF said, and demand for U.S. beef continues to grow in China fueled by access gains achieved in the U.S.-China Phase One Economic and Trade Agreement.
