U.S. beef exports set a new value record in May while also increasing significantly year over year in volume, according to data released by the U.S. Department of Agriculture and compiled by the U.S. Meat Export Federation (USMEF). May pork exports were lower than a year ago, although January through May totals for U.S. pork remained ahead of last year’s pace, USMEF said.

Beef export volume was 117,871 metric tons in May, the sixth largest on record, valued at a remarkable $722.1 million, which surpassed the previous monthly high (March 2018) by a healthy 4% and was 24% higher than a year ago. Through the first five months of 2018, beef exports were up 10% in volume to 547,157 mt, while export value was $3.32 billion, 21% above last year’s record pace.

Data showed that exports accounted for 13.6% of total beef production in May, up from 13% a year ago. For muscle cuts only, the percentage exported was 11.1%, up from 10% last year. For January through May, USMEF said exports accounted for 13.5% of total beef production and 10.9% for muscle cuts – up from 12.8% and 10%, respectively, last year.

Beef export value averaged $313.39 per head of fed slaughter in May, up 18% from a year ago. The January to May average was $317.69 per head, also up 18%.

Following a record performance in April, USMEF said May pork export volume was 217,209 mt, down 2% from a year ago and reflecting smaller exports of variety meats. Export value was $562.5 million, down 3.5%. For January through May, pork export volume was still 3% ahead of last year’s record pace, at 1.08 million mt, while value increased 6% to $2.85 billion.

Exports accounted for 27.8% of total pork production in May, down from 29.5% a year ago, while the percentage of muscle cuts exported fell about one percentage point to 24%. For January through May, the percentage of total production exported was slightly below last year at 27.5%, while the percentage of muscle cuts exported increased slightly to 23.7%.

USMEF reported that May pork export value averaged $55.05 per head slaughtered, down 6% from a year ago. The January to May per-head average was $55.57, up 2% from last year.

Japan, Korea lead way for U.S. beef

Japan and South Korea continue to be the pacesetters for U.S. beef export growth, according to USMEF. In May, export volume to Japan totaled 30,117 mt, up 19% from a year ago, valued at $196.8 million, up 22% and the highest since August 2017. Through May, exports to Japan were up 4% from a year ago in volume to 128,207 mt, while value increased 13% to $822.9 million. This included a 6% increase in chilled beef volume to 61,178 mt, with the value up 18% to $488 million, USMEF noted.

May exports to Korea were up 46% from a year ago in volume to 20,781 mt and jumped 64% in value to a record $146.2 million. For January through May, exports to Korea climbed 34% to 91,875 mt and were valued at $647.3 million – 49% above last year’s record pace. Chilled beef exports to Korea totaled 20,365 mt, up 30%, and were valued at $196 million, up 41%.

“Despite the intense competition U.S. beef faces in Japan and Korea, these markets continue to display a terrific appetite for a growing range of cuts,” USMEF president and chief executive officer Dan Halstrom said. “Beef items that are traditionally popular in Asia continue to perform, and other items more suitable for thick-cut steaks and barbecue concepts are gaining more traction, resulting in exceptional growth opportunities, bu t the enthusiasm for U.S. beef extends well beyond these two leading markets, and that’s how exports have reached this record-breaking pace.”

According to USMEF, other U.S. beef highlights for January through May included:

Pork exports tested by tariffs

Mexico’s retaliatory duties on U.S. pork took effect in June, so January through May results were not directly affected, according to USMEF. May exports to Mexico increased 3% from a year ago in volume to 70,589 mt but slipped 11% in value to $115.6 million. Through the first five months of 2018, exports to Mexico were 6% above last year’s record volume pace at 353,264 mt, with value up 2% to $621 million.

On June 5, Mexico imposed a 10% duty on fresh/frozen pork muscle cuts from the U.S., and the rate increased to 20% on July 5. Also in June, Mexico imposed a 15% duty on U.S. pork sausages and a 20% duty on some prepared hams (these rates did not increase July 5) and opened a duty-free quota aimed at attracting imports from non-U.S. suppliers, according to USMEF.

USMEF said pork exports to the China/Hong Kong region were well below year-ago levels in May due partly to the additional 25% tariff imposed by China on April 2, although the increase does not apply to product entering Hong Kong. May exports to China/Hong Kong were 34,191 mt, down 31% from a year ago, while export value dropped 25% to $79.9 million. For January through May, exports to China/Hong Kong were 18% below last year’s pace in volume at 187,439 mt and were down 6% in value to $436.4 million.

“Exports to China will face an even steeper challenge in the second half of 2018 as China recently hiked the duty rate on U.S. pork by another 25%,” USMEF said, adding that U.S. pork cuts and pork variety meat entering China now face a duty of 62%, compared to 12% for China’s other suppliers, including the European Union, Brazil and Canada.

“It is unfortunate that U.S. pork is caught in the crosshairs of a dispute that has nothing to do with pork trade,” Halstrom said. “USMEF is focusing on the factors we can control by partnering with U.S. packers and exporters to make every effort to defend our market share and protect our business in Mexico and China. USMEF also consistently stresses the importance of diversifying our export markets and expanding U.S. pork’s footprint into emerging markets, and those efforts are more critical than ever.”

On the pork side, USMEF said January to May highlights for U.S. pork included: