While U.S. beef exports continue their pandemic downturn, there was some positive news on muscle cuts in August. Exports of those cuts were above the strong volumes shipped in August 2019, according to the U.S. Meat Export Federation.
Year over year, August shipments of muscle cuts were up 3.4% in volume and up slightly in value — accounting for 81% of total beef export volume and 91% of total export value.
Large losses in beef varietal cuts, however, took the wind out of export sales. Shipments of beef variety meats in August were down 28% in volume and 24% in value.
That put a drag on total beef exports, which were down 4.5% in volume to 109,752 metric tons and 2.4% in value to $673.8 million.
Beef exports had a strong start in the first quarter of the year, up 11% in volume and 8% in value year over year January through March. But the downturn beginning in April brings the January through August numbers to a negative 8% in volume and negative 9% in value.
In the second quarter of the year, beef exports were held back by reductions in slaughter and production as plants implemented worker safety measures, said Joe Shuele, USMEF vice president of communications.
“COVID-19 has also impacted demand to some degree, though in most markets demand has proven to be quite resilient,” he said.
The exceptions would include destinations such as Mexico, where a large percentage of beef consumption depends on the restaurant and hospitality sectors, he said.
The decline in exports of beef variety meats is due in part to the lack of available labor required to harvest and export some items, according to USMEF
“The variety meat items most likely to be passed over are those that require a high level of labor relative to their weight and potential return. Hearts and sweetbreads are examples of labor-intensive items,” Schuele said.
Beef tongues offer a strong return and will always be harvested. But in some markets, demand is very focused on the foodservice sector, he said.
“We expect demand to rebound as restaurants that feature beef tongue return to normal levels of traffic,” he said.
U.S. pork exports are experiencing a similar scenario. Pork muscle cuts were up 22% in volume and 20% in value January through August, while pork variety meats were down 5% in volume although up 5% in value.
Total pork exports were down 2% in volume and 10% in value in August but were up 17% in volume to nearly 2 million metric tons January through August and 18% in value to $5.13 billion.
Demand from China has been the largest driver of pork export growth this year, although the U.S. is the least China-dependent of all the major pork exporters, Schuele said.
“The U.S. industry is certainly capitalizing on the strong demand from China, but we know that it will moderate as China's domestic pork production rebounds, he said.
Because of that, USMEF is focused on getting pork exports to markets such as Mexico and Central and South America back to pre-COVID levels and expanding exports to emerging markets such as Vietnam, he said.
The Link LonkOctober 19, 2020 at 10:30PM
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COVID-19 challenges beef exports | Livestock | capitalpress.com - Capital Press
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