Analysis Cattle & Beef
Difficult sales of American beef on the world market
The American beef export in August has dropped to the lowest point of the year, as shown by recent data from the American Meat Export Federation (USMEF). Especially the export to America's main Asian export markets has led to the decline.
In total, the United States exported 102,500 tons. That is a decrease of 6% compared to the export in August 2023. This reinforces the downward trend. In the first eight months of the year, exports decreased by 3% compared to the previous year to 850,000 tons. The export price of American beef is still higher than last year, but the difference is smaller than the rest of the year. The value of the export decreased by 4% to $845.9 million. Over the first eight months of the year, the value of the export increased by 4% to $7 billion.
Weak export to Asia
The main reason for the lower export volumes is the weak American supply. Throughout the year, drought has caused less cattle available in the United States. As a result, prices are high and demand is low. Particularly the Asian demand is weak, as Australian beef is more readily available and can be imported at a lower price.
This is reflected in the data. The export to South Korea decreased by a whopping 13% to 17,000 tons. This reached the lowest point since 2020. The value of the export decreased by 9% to $158.4 million. The export to Japan decreased by 2% to 20,500 tons. The export value was 5% lower, amounting to $163.1 million. It is not surprising that the export to China and Hong Kong also declined again. The Asian country imported 10% less beef in August than the previous year. The export volume amounted to 17,000 tons. The export value decreased by 8% to $155.3 million.
The export to Taiwan is an exception to the rule. Export volumes increased by 4% to 6,000 tons. The exports to the Philippines, Singapore, and Vietnam also increased. Together, these markets accounted for the export of 3,500 tons of beef. This is an increase of 9% compared to August 2023. Earlier this year, exports to these countries remained roughly the same.
Strong export to Mexico
Meanwhile, the export to Mexico remained strong. The total export to the southern neighbors increased by 2% to 19,000 tons. This seems like a reasonably strong result, but the increase is much less strong than the average of the first eight months of the year. During that period, the export volume increased by 13% to 150,000 tons. Meanwhile, the export value in August increased by 2% to $113.2 million. This is significantly lower than the increase over the first eight months of the year. From January to August, the market value increased by 16% to $898.5 million.
In addition, imports from the Middle East increased. The export to Egypt, the United Arab Emirates, Kuwait, and Bahrain combined increased by 40%. The total export reached 4,000 tons. However, the export is starting to slow down. Over the first eight months of the year, the export was much stronger. In total, the volume increased by 30% compared to the same period last year to 36,500 tons.
