Status of U.S. Meat Product Exports as of 1999

United States exports of meats for 1999 are up one percent over the same period last year, with total value virtually unchanged.

Official total meat export figures do not include all shipments to Russia under the P.L. 480 Title I Food Aid Program in the latter half of 1999. Technical difficulties prevented most of these exports from being included in official U.S. Census data. USDA and Census are working to resolve this problem and to include missing shipments in future trade updates.

The Market Highlights of 1999 include:

• U.S. red meat and poultry meat exports in 1999 were nearly 4.2 million tons, one percent more than a year ago. Pork and poultry volumes showed slight declines, while beef exports experienced a 9 percent gain.
  
• U.S. beef exports rose 9 percent in volume terms in 1999 compared to 1998. This strong advance included a doubling of shipments to Korea and an 11 percent gain to Mexico. A 2 percent decline in exports to Japan and a slight slowdown to Canada could not arrest the above gains.
  
• Although official data show 1999 U.S. pork exports declined 2 percent, a technical problem prevented nearly 50,000 tons of P.L. 480 Title I pork shipments to Russia from appearing in U.S. Census data. U.S. pork exports in 1999 to destinations other than Russia increased 10 percent over 1998. U.S. pork sales to Japan, Taiwan, and Korea increased, while exports to Canada were nearly unchanged and exports to Hong Kong decreased.
  
• Although U.S. poultry exports were down in 1999 for the second year in a row, exports are expected to strengthen in 2000. The United States exported 2.5 million tons of poultry meat in 1999. Under the 1999 food aid package to Russia, the U.S. shipped 74,000 tons of leg quarters to help supplement protein availability in that country.
  
• For 1999, the volume of U.S. variety meat exports rose 3 percent above 1998 levels. Japan provided the impetus for this rise, taking in 45 percent more U.S. variety meats in 1999 than the year before, thus more than offsetting Russia’s 43 percent drop.
  
• U.S. tallow and grease exports in 1999 totaled 1.1 million tons, 12 percent less than the previous year. Gains in U.S. tallow and grease exports to Korea and China were offset by lackluster trade to Mexico, Turkey, and Venezuela.
  
• Total export value of U.S. bovine hides dropped by 5 percent to $914 million in 1999, due primarily to a weak Asian market for leather products during the first half of the year. However, exports to Korea and Taiwan showed strong growth while hide prices increased during the second half, indicating a notable improvement in the Asian market. Wet blue hide exports increased by 11 percent to $250 million denoting a continued worldwide preference for this type of hide.

OUTLOOK FOR 2000:

• Total red meat and poultry exports are forecast to increase slightly to about 4.2 million tons in 2000. Poultry meat and pork are projected to experience increases in shipments, with beef exports virtually unchanged.
  
• U.S. beef exports in 2000 are expected to remain near the record level set in 1999. Japan, Mexico, and Korea will likely remain top destinations, but tighter U.S. supplies (particularly in the second half of the year) and rising prices will dampen export growth. U.S. beef exporters are awaiting the final decision by the Mexican Commerce Secretariat (SECOFI) in the Mexican antidumping investigation against U.S. beef and beef offals, expected in early spring 2000.
  
• U.S. pork exports are forecast to increase 3 percent in 2000 as Mexico and the Asian markets are expected to remain important destinations for U.S. pork. These destinations are expected to offset lackluster exports to Russia, as import demand there is likely to be weak due to continued economic uncertainty.

• U.S. poultry meat exports for 2000 are forecast to rise by 2 percent, helped by recovering Asian markets. In light of the recovering demand, Brazil, Mexico, China, and the United States are all expected to continue to expand production. Increased competition for export markets is expected, particularly from Brazil.
  
• The volume of U.S. hides and skins exports are expected to decline 2 percent in 2000 as strong U.S. domestic demand and lower cattle slaughter rates will keep U.S. hide prices relatively high.
  

Last modified: Thursday, April 06, 2000