February exports of U.S. pork and beef fell below last year’s levels

February exports of U.S. pork and beef fell below last year’s levels, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Pork export volume was down 9 percent from a year ago in February, to 186,745 metric tons (mt), while export value dropped 17 percent to $455.9 million — the lowest monthly value total since February 2016. For January through February, pork exports were 5 percent below last year’s pace in volume (388,580 mt) and 13 percent lower in value ($950 million). February beef exports declined 6 percent year-over-year to 94,885 mt while value was down 3 percent to $581.6 million. January-February exports were 3 percent below last year’s record pace in volume (199,651 mt) but steady in value at $1.22 billion. The volume decline is mainly due to lower exports to Hong Kong and Canada, as shipments to most other major beef markets have trended higher in 2019. “The stiff headwinds trade disputes have created for U.S. pork exports have certainly not subsided,” said USMEF President and CEO Dan Halstrom, in a release. “USMEF is encouraged by reports of progress toward resolution of these disputes, but in the meantime missed opportunities for export growth are mounting.” Mexico, Japan Retaliatory duties continue to pressure U.S. pork exports to Mexico, with volume through February down 13 percent from a year ago to 119,430 mt and export value dropping 32 percent to $171.3 million. The U.S. is still Mexico’s primary pork supplier but Canada, Chile and the European Union have all gained market share in 2019. Demand for imported pork may now be on the upswing in China/Hong Kong due to African swine fever (ASF) as buyers prepare for a looming pork shortage, but China’s retaliatory duties make it difficult for the U.S. industry to capitalize. The duty rate on U.S. pork is 62 percent, compared to 12 percent for other suppliers. Through February, exports to China/Hong Kong were down 22 percent from a year ago to 54,383 mt, with value dropping 34 percent to $108.2 million. In the leading value market for U.S. pork, exports are feeling the pinch from Japan’s lower duties on imports from the EU, Canada and Mexico. Through February, U.S. pork exports to Japan were down 9 percent from a year ago in volume (61,464 mt) and 12 percent lower in value ($248.7 million). Chilled pork exports to Japan were down 6 percent in both volume (34,685 mt) and value ($166 million).