U.S. Livestock and Poultry Exports in 1996
The value of U.S. meat product exports increased only slightly
in 1996 as meat safety concerns reduced overall demand for meat,
especially for beef. When we last reported in October, exports
were 6 percent greater than the preceding corresponding period.
However, the impact of BSE in the United Kingdom and the E.coli
outbreak in Japan slowed the rate of increase in demand. Still,
the United States managed to increase exports to $8.4 billion. As
expected, the clear winners in 1996 were pork, which increased 20
percent in value, and poultry, with a 23-percent increase.
The highlights of 1996 were:
- The value of U.S. beef exports declined 8 percent to $2.4
billion due mainly to a 13-percent decline in exports to
Japan, Canada and Korea, our largest markets. However,
exports did increase in volume terms, from 595,384 tons
in 1995 to 611,456 in 1996.
- Pork exports exceeded the $1.0 billion mark, as consumers
substituted pork for beef, with exports to Japan, Canada
and Mexico up 26 percent, 61 percent and 21 percent,
respectively.
- Taiwan, our major competitor in pork exports to Japan,
increased pork imports from the U.S. by 77 percent to $14
million. Taiwanese focus on the Japanese market resulted
in a deficit in supplies for its growing domestic market.
Domestic consumption increased 6 percent in 1996.
- Poultry exports, at $2.5 billion, jumped nearly $500
million in 1996 due mainly to the strength of the Russian
market which increased its purchases by $306 million for
a total of $913 million. Since 1993, the value of U.S.
poultry exports to the Russian Federation has increased
almost 11-fold.
- Hides and Skins exports were down by $200 million to
nearly $1.3 billion as demand in Korea, Japan, and Taiwan
decreased by 24 percent. This represents a 14-percent
decrease in the value of U.S. hides & skins exports
in 1996 but only a 6-percent decrease in quantity. Low
whole cattle hide prices in the United States was
responsible for the decreased value of hides & skins
exports.
- Tallow and Grease exports, at $507 million, fell $200
million. The drop was due in part to lower supplies in
the United States and the strength of Australian and
Canadian exports.
- Variety meat exports took a slight turn upward to $714
million. Strong beef variety meat exports to Japan
accounted for the upturn, with exports increasing from
$417 million in 1995 to $422 million. Total beef variety
meat exports were $617 million, 86 percent of total
variety meat exports.
- Mexico emerged from its economic slump in 1995 to
purchase $716 million in beef, pork, poultry, variety
meats, tallow & grease and hides & skins in 1996.
This represents a 39-percent increase, valued at an
additional $200 million in purchases from the United
States.
- Food Safety reform was emphasized in an attempt to
protect and assure consumers that meat is safe to eat. As
part of this reform, a new food safety requirement,
Hazard Analysis and Critical Control Point systems, or
HACCP, was established in the United States. The first
stage of HACCP was implemented on January 27, 1997.
- A proposed ban on the use of animal protein derived from
ruminants and mink tissue in ruminant feed was announced
in the United States. This is a pro-active measure by the
Food & Drug Administration to ensure the United
States remains free of BSE. The comment period closed
February 18.
Overall exports are projected to increase in 1997. If current
trends hold, we can expect meat product exports in excess of $9
billion. Beef, pork, and poultry are projected to increase about
9 percent, 20 percent and 12 percent, respectively in 1997.
Variety meats are also expected to increase but only slightly
because of lower supplies in the United States. Tallow and grease
exports are expected to be vastly improved over last year, but
remain below the $700 million level set in 1995. Hides &
skins exports are not expected to improve much in 1997 as reduced
demand in Japan, Korea and Taiwan should offset expected
increased demand from Mexico and China.
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Last modified: Thursday, April 06, 2000
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