Feed Lot

MAR 2018

Feedlots and cow/calf operations in the beef industry who feed 500 or more has annually on grains and concentrates; maintain 500 or more beef cows; backgrounder, stocker/grower, preconditioner; veterinarian, nutritionist, consultant

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22 FEED•LOT  March 2018 MARKETING 2017 was a record-breaking year for U.S. red meat exports, with beef export value exceeding $7 billion for only the second time and pork exports easily sur- passing the previous year's volume record, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports totaled 1.26 million metric tons (mt), up 6 percent from 2016. This was the fourth-largest volume on record and the second-largest of the post- BSE era. Beef export value reached $7.27 billion, up 15 percent year-over-year and 2 percent above the pre- vious high achieved in 2014 ($7.13 billion). "This was a remarkable year for beef exports, in our mainstay markets in northern Asia as well as emerging destinations in South America, Southeast Asia and Africa," said USMEF President and CEO Dan Halstrom. "The U.S. beef industry gained significant market share in Japan despite considerable obstacles, and posted a record-breaking performance in South Korea and Taiwan. These markets are especially critical for chilled beef exports, which were up about 25 percent year-over- y e a r. T h i s h a d a tremendous impact on carcass value." For December only, beef export value was up 9 percent from a year ago to $672.9 million – the sec- ond-highest of 2017 and the third-highest on record. December volume was down 3 percent from a year ago to 113,269 mt. Beef exports accounted for 12.9 percent of total production in 2017 and 10.4 percent for muscle cuts only, down from 13.7 percent and 10.5 percent, respec- tively, in 2016. Beef export value averaged $286.38 per head of fed slaughter, up 9 percent from 2016 and the second-highest on record, trailing only the $300.36 av- erage posted in 2014. Japan leads beef export growth; value records fall in several key markets Japan solidified its position as the leading market for U.S. beef in 2017, with volume climbing 19 percent year-over-year to 307,559 mt and value up 25 percent to $1.89 billion – new post-BSE records. Chilled ex- ports to Japan expanded even more rapidly, reaching 148,688 mt (up 32 percent) valued at $1.102 billion (up 37 percent) as U.S. beef captured more than half of Japan's imported chilled beef market – a new high for U.S. market share. Japan accounts for nearly $75 in export value per head of fed slaughter and delivers critical premiums for certain cuts. For example, Japan's imports of U.S. beef tongue averaged $12.13 per head and imports of short plate averaged $26.44. The U.S. industry is marketing a wide range of beef cuts in Japan and the market holds potential for addi- tional growth. But market access is a concern, with im- ports of Australian and Mexican beef subject to signif- icantly lower duties and beef from Australia, Canada, New Zealand and Mexico all poised to gain further tariff relief through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Other 2017 beef export highlights include: • Beef exports to South Korea increased 3 percent in volume (184,152 mt) and climbed 15 percent in val- ue to $1.22 billion, easily outpacing the previous year's record. Chilled U.S. beef achieved tremen- dous growth, increasing 73 percent in volume (45,153 mt) and 78 percent in value ($405.8 million). New Records for U.S. Beef Export Value

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