US beef exports fall 10% in April on China trade hurdles - USMEF
Pork shipments also decline as retaliatory tariffs weigh on tradeDue in part to a sharp decline in shipments to China, April exports of US beef and pork trended lower than a year ago, according to data released by USDA and compiled by the US Meat Export Federation (USMEF).
China’s retaliatory duties are a major headwind for both US beef and pork, while beef exporters face an additional obstacle. China has failed to renew establishment registrations for US beef plants and cold storage facilities, the majority of which expired in mid-March.
April beef exports totalled 100,659 metric tons (mt), down 10% from a year ago, while value fell 8% to $824.5 million. Exports to China declined nearly 70% and shipments also trended lower to Mexico, Taiwan and the Middle East. These results were partially offset by larger exports to South Korea, Japan and Central and South America.
For January through April, beef exports were 3% below last year’s pace at 411,027 mt. Export value was down just 1% to $3.35 billion.
“We expected beef shipments to China to hit a wall in April, due to the one-two punch of higher tariffs and expired plant registrations,” said USMEF president and CEO Dan Halstrom.
“We are hopeful that these issues will be resolved soon and are encouraged by this week’s developments on trade negotiations with China," he added. "In the meantime, USMEF remains committed to market diversification and we have accelerated efforts to develop alternative destinations for cuts and variety meat items normally shipped to China.”
China’s total duties on US beef peaked in April at 147%. The rate was lowered to 32% on May 14 when the US and China agreed to a temporary de-escalation to allow for further negotiations. (Product that shipped prior to April 10 was allowed to clear without the additional 125%, provided it arrived by May 13.) President Trump spoke with Chinese President Xi Jinping on June 5 and said further talks will be held soon.