The American beef export continues to recover despite market tightness, as shown by figures from the American meat industry association USMEF. After a weak start to the year, American beef exports showed recovery, and that trend continued in July. This is mainly due to improved exports to Asian markets and Mexico. It is also noteworthy that export prices increased that month compared to the previous year.
In July, meat exports increased by 7% compared to the same month in 2023, reaching 110,400 tons. This is the second-highest volume of the year. This is remarkable considering that drought caused the American cattle herd to reach its lowest point since 1951. However, higher summer production allowed for a stronger export. Despite the increase in exports, the export share in July decreased to 14%. The previous year, 14.4% of beef was destined for export.
The value of exports in July increased by 12% to $910.9 million. This is the highest export value of the year. Additionally, export prices rose. The value per head of cattle increased by 4% in July compared to the same month in 2023, reaching $418.43. The average value over the first seven months of the year increased by 6% to $418.38.
Rising Asian demand
The strong exports are primarily driven by strong demand from Asia. Until recently, demand for American meat was low, but demand has significantly increased in Japan and Taiwan. Exports to Japan increased by 14% to over 22,000 tons. According to USMEF, growth in Japanese tourism contributed to the increase. The export value rose by 17% to $175 million. Over the first seven months of the year, exports to Japan reached 149,000 tons. While the export slightly increased, the growth was less than 1%. The export value increased by 7% to $1.15 billion.
After a slow start, exports to Taiwan also significantly increased. Exports in July rose by 16% to over 6,000 tons. However, it was the export value that saw an impressive increase. The total value increased by 33% to $69.5 million. From January to July, exports decreased by 7% to 37,000 tons. Nevertheless, the value increased during this period. Overall, exports rose by 7% to $404.2 million.
Demand in Indonesia and Vietnam also significantly increased. Exports to these countries in July surged by 70% to approximately 4,500 tons. The value increased by 125% to $37 million. However, exports were 3% lower over the first seven months of the year. During this period, the United States exported around 23,000 tons of beef to these countries.
The results in the Korean market, on the other hand, were mixed. Exports to South Korea slightly increased in volume in July to 17,500 tons. The export value was 9% higher, reaching $169 million. Over the first seven months of 2024, the export value increased by 2% to $1.27 billion, although exports decreased by 11% to 134,000 tons.
Significant Increase in Exports to Mexico
Furthermore, exports to Mexico were very strong. Mexican beef imports in July amounted to over 21,000 tons. This represents a 19% increase compared to the same month a year earlier. The import value increased by 17% to $122.5 million. This is the highest level in four years. Over the first seven months of the year, exports reached 134,500 tons. The value increased to $785.3 million during this period. The export of variety meat played a significant role in export volumes. The total export of variety meat increased by 15% to 71,000 tons. The value of variety meat exports increased by 10% to $192.7 million.
However, exports to Colombia almost came to a standstill due to avian flu outbreaks among dairy cows. Exports were negligible in July, and despite a strong first quarter, exports decreased by 32% compared to the same period in 2023. The market value decreased by 21%, or $14.2 million.