US gets “wake-up call” on export challenges
Beef exports for the month stood at 79,899 metric tons (mt) – down 18%, with value sales down 2% to $503.57m, while pork exports fell 16% in volume to 161,165mt, and 15% in value to $455.3m.
Shipping delays and economic factors, such as the strength of the US dollar, saw export volumes for beef and pork fall to four-year lows, with global beef supplies expected to be tight again this year, and competition in major pork export markets increasing.
Exports of beef to Mexico were unaffected by the port congestion, but volumes to Japan were down 12%, and exports to South Korea and Hong Kong fell to their lowest level for two years.
Pork exports to Korea posted a 34% increase in volume to 15,262mt, and the Dominican Republic also upped its supplies by 28% to 1,463mt. However, exports to other major destinations, such as Japan, were down across the board, said USMEF.
"We expected January to be a difficult month, so these results are not especially surprising, but I see the January slowdown as a wake-up call for the US industry in terms of the fiercely competitive situation we face in key markets," said Seng.
"Conditions are now improving in the West Coast ports, but the damage caused by that impasse is still not finished, and it is clear that competitors capitalised on our inability to move product in a timely fashion. We need to win back the confidence of the valuable Asian customer base we spent many years building."
January was the first month in which beef tariff reductions were in effect under the Japan-Australia Economic Partnership Agreement (JAEPA), with further reductions coming in April, said USMEF. Meanwhile, South Korea’s new trade agreements with Australia and Canada have also narrowed the tariff benefit previously gained by the US.
US lamb exports were down 32% in volume to 719mt and 35% in value to $1.7m.
