On a per-head basis, both pork and beef exports achieved record value levels. The U.S. exported 29.4 percent of total pork production with a per-head equivalent value of $56.52. The beef industry exported 15 percent of total production with an export value per head of fed slaughter reaching $205.40.

For the first three months of 2011, beef exports are up 32 percent in volume and 53 percent in value while pork exports are up 18 percent in volume and 25 percent in value compared to the first quarter of 2010.

“We are seeing rebounding global demand for high-quality U.S. red meat products, particularly as consumer trust recovers in key markets like Japan and South Korea,” said Philip Seng, USMEF president and CEO. “Certainly, we still are facing obstacles in the international marketplace, such as China’s ban on U.S. beef, Mexico’s NAFTA-related tariff on U.S. pork, technical issues in Taiwan and age restrictions on beef exports to Japan, but even without the resolution of any significant access issues, we’re finding increased opportunities to expand market share for U.S. red meat products.”

Record-high export levels

March export levels for both pork and beef set new value and volume records. March pork exports hit 217,025 metric tons and surpassed $553.6 million in value, a 31.3 percent increase in volume and 40 percent jump in value over year-ago levels.

Total beef exports in March of 117,075 metric tons were 45 percent larger than year-ago and up 18 percent from March 2003. On a value basis, exports were record-large at $475.2 million, up 65 percent versus both March 2010 and March 2003. For the first quarter, exports were up 53 percent in value and 32 percent in volume, totaling $1.2 billion and 296,535 metric tons. On a value basis, exports have exceeded 2003 levels for the past five months and export volume also has exceeded 2003 in three of the past five months.

For the first quarter of 2011, beef exports equated to 13.4 percent of production with value at $186.58 per head of fed slaughter.

South Korea sets beef pace

The top growth market for beef was South Korea with first quarter exports up 181 percent to 52,635 metric tons and value up 190 percent to $226.4 million. This put Korea narrowly behind Mexico for the top spot among U.S. beef export destinations. Total March beef exports of 24,485 metric tons surged above March 2003 volume (when Korea was the No. 3 export market for U.S. beef) and were three times larger than March 2010 exports. The U.S. accounted for 38 percent of Korea’s first quarter beef imports, up from 30.5 percent market share one year ago.

Last week, USMEF was designated as the recipient of $1 million in USDA MAP funds to augment its current efforts to address the impact of non-science-based import regulations on U.S. beef exports to South Korea and build consumer confidence in U.S. beef. USMEF also is applying for an additional $10 million in MAP funds over five years to expand and intensify the program.

“The U.S. meat industry has faced unprecedented and unscientific technical barriers to trade that, in the name of food safety, have unnecessarily restricted U.S. exports,” said Seng.

“These new resources will enable us to expand and intensify our efforts with the goal of the complete restoration of the beef market in Korea.”

As is the case with pork exports to Korea, the pending approval of the U.S./Korea FTA would reduce tariffs on U.S. beef exports to that nation and help ensure competitive pricing for U.S. products.

Other beef exports

 * Japan – Exports to Japan surged in the first quarter, up 73 percent to 31,989 metric tons and up 85 percent in value to $176.4 million. March exports of 11,630 metric tons were up 70 percent and 91.2 percent in value ($70.2 million) from March 2010.

* Weekly beef export data indicates that shipments to Japan have maintained this strong pace, even following the devastating March 11 earthquake. The U.S. also has gained beef market share in Japan, accounting for 19.5 percent of first quarter imports, up from 15 percent year-ago. Japan is currently the fourth-largest market for U.S. beef, following Mexico, Korea and Canada.

* Mexico – March exports showed reason for continued optimism, up 24 percent to 23,307 metric tons and up 44.4 percent in value to $87.8 million. First-quarter exports are up 10 percent in volume to 63,849 metric tons and up 30 percent in value to $239.4 million. U.S. imports of feeder cattle from Mexico also have been strong this year, following a 30 percent increase last year, which could help demand for more beef from the U.S.

* Canada – Up 15 percent in volume (36,922 metric tons) and 35 percent in value ($187.7 million) for the quarter and on a similar pace in March. Canadian cattle slaughter was down 10.6 percent through April of 2011 as years of herd liquidation have limited beef production. This, along with a strong Canadian dollar, should continue to support imports of U.S. beef. Imports of live cattle from Canada also were down 20 percent in the quarter, further evidence of tight supplies of cattle to the north.

* Middle East – Despite unrest in the region, the Middle East continues to be a booming market for U.S. beef. First quarter totals are up 35 percent in volume (35,143 metric tons) and 63 percent in value ($71.5 million). In March, year-over-year increases of 33.6 percent in volume and 42.6 percent in value were achieved.

* Russia – Continued growth in exports to Russia – up 9 percent in volume (13,964 metric tons) and 12 percent in value ($32.4 million) for the quarter. March shipments jumped 26.7 percent in volume and 11.2 percent in value. Exports should gain further momentum in the coming months to fill the U.S. tariff rate quota of 41,700 metric tons (20,000 metric tons higher more than last year).

* ASEAN – First quarter exports to this region were down 19 percent in volume (17,777 metric tons) and 14 percent in value ($61.3 million) due to a 43 percent volume decline to Vietnam. However, exports to Indonesia doubled in volume, reaching 4,435 metric tons valued at $6.2 million, while exports to the Philippines increased 21 percent to 2,957 metric tons valued at $9.2 million, a 30 percent hike.

* Hong Kong – Beef exports jumped 72 percent in volume (13,082 metric tons) and 107 percent in value ($59.7 million) for the quarter. In March, volumes were up 46 percent over year-ago levels while values doubled.

* Taiwan – Reflecting market access challenges, first quarter exports to Taiwan were down 20 percent in volume (6,789 metric tons) and 13 percent in value ($39.2 million), but March totals showed some rebound, up 4.4 percent in volume and 9.9 percent in value. Taiwan’s import data for April also show improvement.