Source: Tom Johnston, MEATINGPLACE, 8/7/15


The West Coast port dispute that held up shipments and intensified competition in foreign markets dampened U.S. red meat exports in the first half of 2015, according to USDA data compiled by the U.S. Meat Export Federation.

June pork exports totaled 174,554 metric tons (mt), down 4 percent from a year ago. With pork prices down significantly from last year’s high levels, June export value fell 22 percent year-over-year to $454 million. For the first half of 2015, pork exports were down 5 percent in volume (1.09 million mt) and 16 percent in value ($2.88 billion).

Beef export volume in June was down 8 percent from a year ago to 96,716 mt, while export value fell 9 percent to $578.9 million. This was the second consecutive month that export value fell below last year’s level, resulting in first-half value being steady with 2014’s pace at $3.26 billion. First-half volume was down 10 percent to 527,109 mt.

“We were aware that exports would be facing obstacles in 2015, and that keeping pace with last year’s record performance would be difficult,” USMEF President and CEO Philip Seng said. “The first-quarter slump was partially due to the West Coast port labor impasse, as well as intense competition from countries that continue to recognize opportunities in several markets. We were expecting to see a stronger rebound in the second quarter — and that did not materialize.”

Seng added that, while marketing budgets remain flat, competitors are beefing up efforts to capture larger shares of the red meat market, and a strong U.S. dollar is helping them.

The European Union, for one, has been aggressive in targeting specific markets, and it is sending large supplies of European pork to the Asian market because the Russian market, traditionally the EU’s largest pork export market, has been closed for 18 months. Russia’s suspended pork imports from the EU first on African swine fever fears but then reinforced the ban by a trade embargo related to the conflict in Ukraine.

Australian beef production was expected to decrease in 2015 as the industry entered herd-rebuilding mode after several years of poor grazing conditions. But with disappointing rainfall in Australia and attractive slaughter cattle prices, beef production and exports remained record-large through the first half of the year – though some slowdown was seen in July.

For more stories,go to www.meatingplace.com.