Red-meat exports on a roll so far

U.S. beef, pork cargo up, but analysts see slack in rest of year

Exports of red meat in the U.S. have started off strong this year, but maintaining those numbers will be a challenge, analysts said Thursday.

Currently, the strongest red-meat export is beef, but because of drought conditions during 2013, the amount of product that is normally available to be exported has decreased.

“Right now, estimates show a decline in beef exports,” said Lindsay Kuberka, economist in animal products for the U.S.Department of Agriculture.

Compared with this same time last year, beef exports have increased by 5 percent and pork by 4 percent. However, forecasts for the rest of the year are negative because of limited production.

In 2013, Japan led the beef import market in regard to the amount of U.S. beef purchased and the cost per head of cattle. From January to December, Japan imported more than 234,000 metric tons and paid more than $1.3 billion for highquality cuts of the meat.

“Japan tends to buy higher-valued cuts than other markets,” said Jim Herilhy, vice president of communications of the U.S. Export Federation. “They don’t have enough in their domestic market to meet their needs.”

In 2013, Mexico led the import market of U.S. pork with more than 625,000 metric tons imported, but in regard to the demand of high-quality cuts of meat, they were surpassed by Japan.

Pork exports are up 4 percent compared with the same time last year but are expected to decrease as the Porcine Epidemic Diarrhea virus continues to affect U.S. herds.

“We are worried that we don’t have the product to fill the demand for beef,” Herilhy said. “As prices go up, it will continue to be a challenge.”

The export value in 2013 of an entire cow was $244 more than if it was sold in the U.S. Pork sold for $53 more internationally.

“Less exports mean less money to bring back in,” Herilhy said. “It gives us more incentive to sell it [overseas] and bring more profit to the producers in the U.S.”

Business, Pages 30 on 03/14/2014

Upcoming Events