UNITED STATES-MEAT EXPORTS GOOD IN 2008.
U.S. pork and beef exports in 2008 saw double-digit increases over 2007, but concerns about their performance going forward have arisen as the global economy falters, according to the U.S. Meat Export Federation.
Pork achieved a seventeenth consecutive record-setting year of increased export numbers in 2008. For December, total pork export volumes rose 19.7 percent over 2007 and export values rose 19.2 percent. For the full year, volume was up 57 percent to more than 2 million metric tons (4.5 billion pounds) and values rose 55 percent to nearly $4.9 billion.
Total U.S. beef exports in 2008 logged gains of 10.8 percent in volume and 16..5 percent in December over the same month in 2007. For the calendar year, export volumes rose 28 percent to 984,712 metric tons (nearly 2.2 billion pounds) and values jumped 38 percent to $3.6 billion.
Key export markets for U.S. red meat continue to perform fairly consistently, USMEF Economist Erin Daley said in a statement.
"Mexico continues to dominate as the largest market for U.S. beef, while Canada is consistent with the previous two months and the first quarter of 2008, although well below volumes seen in the second and third quarters," Daley said in a statement. "And exports to Japan are up 29 percent for December and 59 percent for the year in volume."
Cause for concern
However, the global economic downturn gives cause for concern, and was signaled to some extent by U.S. red meat exports trailing off in some markets at the end of 2008.
In South Korea, for example, exports for the year were up 128 percent compared to 2007, but December exports were 3,335 metric tons (7.4 million pounds), the lowest monthly volume since the market reopened in July. The depreciated Korean won was the main culprit; currently it takes 36 percent more Korean won to buy $1 worth of U.S. beef than it did in July..
Trade barriers also pose a threat, with Russia offering a prime example.
"With 35 U.S. pork facilities delisted, exports to Russia could face a rough start in 2009, not to mention the challenging economic situation and the devaluation of the ruble," Daley said. For example, In 2008, U.S. pork exports to Russia reached 217,767 metric tons (480.1 million pounds) valued at $476 million, increases of 118 percent in volume and 130 percent in value over 2007. However, in December both the volume and value of pork exports were down sharply from a year ago, reaching the lowest volume levels since December 2006.
