US beef exports drop sharply due to Chinese exports

The American beef export came under heavy pressure in July due to the limited market access in China. The total export has declined significantly. Exports to other important destinations are also decreasing, although the export to South Korea is actually stronger. In July, the total export volumes were 89,579 tons, a decline of 19% compared to a year earlier and the lowest level in five years. The export value dropped by 17% to $752.5 million, the lowest amount since January 2023. For the period from January to July, the export volumes were 8% lower at 691,800 tons, while the export value decreased by 7.5% to $5.67 billion. Furthermore, China suspended another eleven American beef plants since June, further deteriorating market access. According to market experts, demand in other regions remains relatively stable, despite higher prices, but restoring access to China is seen as an absolute priority. Export to China nil The majority of slaughterhouses and storage facilities have not received renewed registration since March, causing exports to virtually come to a halt. As a result, exports to China practically dropped to zero. In July, American beef exports to China plummeted by 92% to just 1,110 tons, while the export value fell by 94% to less than $8 million. For the period from January to July, the export volume was 46% lower at 55,632 tons, and the value decreased by 47% to $481.4 million. In contrast, American beef exports to South Korea experienced strong growth. The export volume increased by 13% to 19,907 tons, while the export value rose by 10% to $186.4 million. Over the first seven months of this year, exports to South Korea were 9% above last year’s level, both in volume (146,084 tons) and value ($1.39 billion). The expectation is that these strong results will continue. At the end of July, President Trump announced a trade agreement with South Korea. However, no details have yet been disclosed about the impact on agricultural trade, making it unclear whether the agreement will yield further benefits for the beef sector. Export to Mexico declines In July, demand from Mexico for American beef clearly decreased. Exports fell by 24% to 15,973 tons, while the export value decreased by 10% to $110.8 million. Over the first seven months of this year, exports to Mexico were 9% lower in volume (122,061 tons) and 3% lower in value ($758.1 million). American beef exports to Japan also decreased by 4% to 21,048 tons. The export value dropped by 10% to $156.7 million. Over the first seven months of this year, exports to Japan were 3% lower in volume (145,053 tons) and 7% lower in value ($1.08 billion). Conversely, exports to the Caribbean region increased, contrary to the yearly trend. In July, American beef exports to the Caribbean rose by 7% to 2,458 tons. The export value even increased by 20% to $24.3 million. The growth was primarily driven by higher shipments to the Dominican Republic, the Bahamas, Jamaica, the Cayman Islands, and the Windward and Leeward Islands. Over the first seven months of this year, the export value to the region increased by 13% to $184.5 million, despite a 6% decrease in volume to 18,645 tons. The same applies to the exports to Chile. In July, American beef exports to South America grew by 24% to 1,756 tons, while the export value increased by 57% to $13 million.