Despite Supply Chain Challenges, Red Meat Exports Look Good for 2020

Despite a host of challenges, 2020 U.S. red meat exports have been fairly strong. According to the U.S. Meat Export Federation, beef exports were up 9% year over year in the first quarter; pork exports were up 40%. USMEF CEO and President Dan Halstrom said because of the coronavirus pandemic, the red meat industry saw a massive shift away from food service to the retail segment, with huge growth reported in on-line, home delivery formats. And he noted while much of the U.S. is still under some form of lockdown because of the COVID-19 pandemic, Asia is transitioning out of it.

“Markets like Taiwan, China, and Hong Kong have actually been out of the lock downs for almost two months, Korea and Vietnam have been out of it for a few weeks, and our largest market, Japan, had some relaxation on 39 of the 47 prefectures, and the rest of them will be open by the end of May.  So, we’re seeing a shift back in to food service demand back into food service demand in the Asian markets, it’s not back to normal, but it is slow and steady progress.”

Halstrom noted that first quarter beef exports were not significantly impacted by the supply chain disruptions, but he expects an impact in the second quarter, especially the last part of April into the first half of May.

“But our outlook for 2020 continues to remain very positive in part because of improvements in market access.  The U.S./Japan agricultural agreement, we are definitely seeing positive impacts.  If it wasn’t the largest deal ever made for U.S. beef and pork, it’s one of the largest, and we’re now on a level playing field visa vie our competition.”

Halstrom also noted the industry is seeing benefits from the Phase One trade agreement with China, but that’s primarily in the pork sector.

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