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USDA Bi-Weekly International Meat, Poultry & Egg Review


18 May 2015

USDA Bi-Weekly International Meat, Poultry & Egg Review - 18 May 2015USDA Bi-Weekly International Meat, Poultry & Egg Review - 18 May 2015


International Trade Highlights: Recently, the USDA Foreign Agricultural Service (FAS) released U.S. red meat export and import data for March 2015. According to the statistics, during March, U.S. exports of beef and veal cuts and beef variety meats equaled 86,766 MT. This was 4.5 percent higher than the previous month but was 7.1 percent lower than March 2014. More specifically, fresh, chilled beef exports totaled 23,930 MT, which was down 7.3 percent from the previous month and was down 14.9 percent from March 2014. Frozen beef exports totaled 33,977 MT, which was up 10.2 percent over the previous month but was down slightly from March 2014. During March, the U.S. exported 25,250 MT of beef variety meats. This was 9.2 percent more than the previous month but was 6.8 percent less than March 2014. During the first quarter of 2015, total beef variety meat exports equaled 73,987 MT, which was 9.3 percent less than last year. Mexico was the largest market for beef variety meat exports with 37.9 percent, or 28,074 MT. During March, U.S. beef exports to Mexico totaled 17,814 MT, which was 4.0 percent lower than the previous month. During the first quarter of the year, total beef exports to Mexico were 1.0 percent less than a year ago, amounting to 56,580 MT. Mexico was the primary U.S. beef export market with 22.7 percent of the total. Beef exports to Japan during March rose 16.8 percent over February to 18,605 MT. Year-to-date beef exports to Japan totaled 48,348 MT, 3.6 percent above a year ago. During March, the U.S. exported 10,395 MT of beef to Hong Kong. This was 17.9 percent greater than the previous month. Year-to-date beef exports to Hong Kong were 20.6 percent below a year ago, totaling 27,841 MT. Overall, during the first quarter of 2015, U.S. total beef and veal and beef variety meat exports equaled 249,660 MT, which was 9.9 percent less than the same period a year ago.

During March, U.S. exports of pork cuts and pork variety meats totaled 186,710 MT. This was 9.5 percent more than the previous month but was 9.4 percent less than March 2014. More specifically, fresh, chilled pork exports equaled 61,420 MT, which was up 6.4 percent over the previous month and was up 3.9 percent over March 2014. Frozen pork exports equaled 69,019 MT, which was up 19.3 percent over the previous month but was down 20.0 percent from March 2014. During March, the U.S. exported 35,996 MT of pork variety meats. This was 12.9 percent lower than the previous month and was 18.5 percent lower than March 2014. During the first quarter of 2015, U.S. pork variety meat exports totaled 115,245 MT, 4.3 percent lower than last year. Mexico was the largest buyer of U.S. pork variety meats with 29.4 percent, or 33,883 MT. U.S. pork exports to Mexico during March totaled 60,824 MT. This was up 5.8 percent over the previous month. During the first quarter, total pork exports to Mexico were 7.3 percent above last year, amounting to 176,641 MT. Mexico was the primary U.S. pork export market with 34.3 percent of the total. U.S. pork exports to Japan during March equaled 35,771 MT, which was 6.5 percent more than the previous month. Year-to-date pork exports to Japan totaled 103,922 MT, which was 13.4 percent less than last year. Pork exports to South Korea during March fell 13.8 percent from the previous month to 19,464 MT. Year-to-date pork exports to South Korea totaled 57,167 MT, 44.7 percent higher than a year ago. Overall, during the first quarter of 2015, U.S. exports of pork cuts and pork variety meats totaled 514,562 MT, 10.2 percent below the corresponding period a year ago.

During March, U.S. beef and veal imports equaled 108,571 MT. This was 28.5 percent higher than the previous month and was 32.2 percent higher than March 2014. More specifically, fresh, chilled beef imports totaled 40,552 MT, which was up 28.7 percent over the previous month and was up 14.6 percent over March 2014. Likewise, frozen beef imports were up 31.3 percent over the previous month and were up 42.6 percent over March 2014, totaling 62,940 MT. During March, the U.S. imported 33,224 MT of beef from Australia. This was 42.4 percent more than February. During the first quarter, the U.S. imported 96,882 MT of beef from Australia, which was 96.0 percent more than a year ago. Australia was the leading source for U.S. beef imports with 33.1 percent of the total. Beef imports from New Zealand during March rose 43.6 percent over the previous month to 28,142 MT. Year-to-date beef imports from New Zealand equaled 66,886 MT, 28.2 percent more than last year. During March, beef imports from Canada totaled 19,914 MT, 22.6 percent more than the previous month. During the first quarter, the U.S. imported 53,196 MT of beef from Canada, which was 6.4 percent higher than a year ago. Overall, during the first quarter of 2015, U.S. beef and veal imports totaled 292,506 MT, which was up 46.1 percent over the same period a year ago.

During March, U.S. pork imports totaled 44,023 MT. This was 9.7 percent higher than the previous month and was 59.8 percent higher than March 2014. More specifically, imports of fresh, chilled pork rose 10.8 percent over the previous month and 16.1 percent over March 2014 to 25,379 MT. Imports of frozen pork totaled 14,609 MT, which was up 38.7 over the previous month and was up 63.8 percent over March 2014. U.S. pork imports from Canada during March equaled 32,901 MT, 1.2 percent higher than February. During the first quarter, the U.S. imported 94,484 MT of pork from Canada, which was 28.8 percent higher over a year ago. Canada was the main supplier of pork to the U.S. with 78.1 percent of the total imports. During March, the U.S. imported 3,427 MT of pork from Denmark. This was 69.7 percent higher than the previous month. Total year-to-date pork imports from Denmark were 10.3 percent below last year, amounting to 7,449 MT. Overall, during the first quarter of 2015, U.S. total pork imports equaled 120,969 MT, which was 31.3 percent greater than the same period a year ago. Additional U.S. trade data is available on the FAS website http://www.fas.usda.gov/gats/.

North America: The USDA Foreign Agricultural Service (FAS) recently published data for the U.S. lamb, sheep and goat meat trade. The numbers include fresh, chilled and frozen product, as well as carcasses, cuts and bonein and boneless product. According to the data, during the first quarter of 2015, the U.S. exported 474 MT of lamb and sheep meat. This was 19.3 percent less than the previous quarter and was 26.5 percent less than a year ago. Lamb and sheep meat exports to Mexico during the first quarter were 29.2 percent lower than the previous quarter and were 36.2 percent lower than a year ago, totaling 207 MT. Mexico was the main destination for U.S. lamb and sheep meat exports with 43.7 percent of the total exports. During the first quarter, the U.S. exported 50 MT of lamb and sheep meat to Canada, which was 42.4 percent lower than the previous quarter and was 56.4 percent lower than a year ago. Canada accounted for 10.5 percent of the total U.S. lamb and sheep meat export market. Meanwhile, during the first quarter of 2015, the U.S. imported 21,040 MT of lamb and sheep meat. This was down 3.1 percent from the previous quarter but was up 13.6 percent over a year ago. Lamb and sheep meat imports from Australia during the first quarter totaled 15,209 MT, which was 11.8 percent less than the previous quarter but was 10.0 percent more than a year ago. Australia was the main supplier of lamb and sheep meat to the U.S. with 72.3 percent of the total imports. During the first quarter, lamb and sheep meat imports from New Zealand rose 30.0 percent over the previous quarter to 5,605 MT. Also, this was up 22.8 percent over a year ago. Imports from New Zealand comprised 26.6 percent of the total. Meanwhile, during the first quarter of 2015, U.S. goat meat imports fell 27.7 percent from the previous quarter and 15.2 percent from a year ago to 3,800 MT. U.S. first quarter goat meat imports from Australia equaled 3,695 MT. This was 29.2 percent lower than the previous quarter and was 17.0 percent lower than a year ago. Australia was the largest market for U.S. goat meat imports with 97.2 percent of the total. Additional U.S. trade data can be found on the FAS website http://www.fas.usda.gov/gats/.

On April 30, the USDA National Agricultural Statistics Service (NASS) released its annual Meat Animals Production, Disposition, and Income 2014 Summary report. According to the publication, in 2014, U.S. total gross income from cattle and calves, and hogs and pigs totaled $108.3 billion, which was up 18.0 percent over 2013. Gross income from cattle and calves in 2014 was up 20.5 percent over the previous year, amounting to $81.9 billion. During 2014, gross income from hogs and pigs rose 11.2 percent over 2013 to $26.5 billion. Cattle and calf production during 2014 equaled 40.3 billion pounds, which was 1.0 percent less than 2013. During 2014, hog and pig production decreased 1.9 percent from 2013 to 32.0 billion pounds. During 2014, marketings of cattle and calves equaled 52.1 billion pounds, 4.6 percent less than 2013. Marketings of hogs and pigs during 2014 decreased 2.7 percent from the previous year to 33.0 billion pounds. During 2014, the U.S. annual price per 100 pounds live weight for cattle and calves equaled $155.89, which was up from $123.48 in 2013. The average price for hogs and pigs in 2014 was $80.16, up from $70.15 in 2013. The entire report, which also includes information on cash receipts, inventories, births, deaths and home consumption, is available on the NASS website at http://www.nass.usda.gov/.

South America: Recently, Argentina’s National Service of Health, Food and Agriculture Quality (SENASA) published Argentina’s beef export numbers for the first quarter of 2015. The figures include fresh beef, offals, processed beef and Hilton cuts. During the first quarter of 2015, Argentina’s beef exports totaled 62,173 MT. This was down 1.9 percent from the previous quarter but was up 16.3 percent over a year ago. Argentina’s beef exports to Russia during the first quarter equaled 13,763 MT. This was 3.6 percent lower than the previous quarter but was 22.8 percent higher than a year ago. Russia was Argentina’s leading beef export market with 22.1 percent of the total. During the first quarter, Argentina exported 8,807 MT of beef to China, which was 13.0 percent higher from the previous quarter and was 328.8 percent higher than last year. China was Argentina’s second largest beef export market with 14.2 percent of the total. During the first quarter, Argentina exported 7,811 MT of beef to Hong Kong. This was nearly unchanged from the previous quarter but was down 21.1 percent from a year ago. Beef exports to Chile during the first quarter were 10.3 percent less than the previous quarter but were 6.3 percent more than a year ago, amounting to 6,544 MT. Beef exports to Israel during the first quarter rose 72.7 percent over the previous quarter to 5,227 MT. Also, this was 34.5 percent more than a year ago. During the first quarter of 2015, Argentina’s main fresh beef market was China with 31.0 percent of the total. Russia was the leading offal export market with 39.1 percent of the total. Argentina’s largest processed beef export market was the Netherlands with 29.3 percent of the total. The main Hilton cut export market was Germany with 58.7 percent of the total. Of Argentina’s total beef exports during the first quarter of 2015, exports of offals accounted for 46.0 percent of the total, fresh beef comprised 45.7 percent, Hilton cuts accounted for 8.1 percent of the total, and processed beef exports made up less than 1.0 percent of Argentina’s total exports.

Pacific Rim: Japan’s Agriculture and Livestock Industries Corporation (ALIC) recently released Japan’s red meat import data for March 2015. According to the numbers, during March, Japan imported 35,136 MT of beef. This was slightly less than the previous month and was 4.6 percent less than Mach 2014. More specifically, frozen beef imports totaled 17,943 MT, which was down 18.5 percent from the previous month and was down 11.8 percent from March 2014. Fresh, chilled beef imports totaled 17,160 MT, which was up 28.7 percent over the previous month and was up 4.5 percent over March 2014. During March, Japan’s beef imports from Australia rose 7.6 percent over the previous month to 18,184 MT. However, this was 3.6 percent lower than March 2014. During the first quarter, beef imports from Australia were down 8.2 percent from last year, totaling 51,982 MT. Australia was the main beef import market for Japan with 51.8 percent of the total. Japan’s beef imports from the U.S. during March equaled 13,314 MT. This was slightly lower than the previous month and was 9.9 percent less than March 2014. Total year-to-date beef imports from the U.S. were down 5.0 percent from a year ago, amounting to 38,055 MT. Beef imports from New Zealand during March rose 22.5 percent over the previous month but fell 16.8 percent from March 2014 to 1,804 MT. Year-to-date beef imports from New Zealand totaled 5,578 MT, which was 12.9 percent less than a year ago. Overall, Japan’s beef imports during the first quarter of the year equaled 103,598 MT, which was 2.5 percent lower than the same period a year ago. Japan’s beef marketings during February totaled 67,238 MT, 13.5 percent higher than the previous month but 2.9 percent lower than last year. Imported beef marketings were up 9.8 percent over year ago, totaling 40,337 MT. Domestic beef marketings equaled 26,901 MT, which was 3.7 percent more than a year ago. At the end of February, Japan’s beef stocks totaled 126,177 MT, which was down 4.4 percent from the previous month but was up 13.3 percent over a year ago. Stocks of imported beef equaled 116,918 MT, 18.0 percent greater than last year. Stocks of domestic beef totaled 9,259 MT, 24.6 percent lower than a year ago.

During March, Japan imported 65,345 MT of pork. This was up 21.1 percent over February and was up 5.5 percent over March 2014. Specifically, imports of frozen pork totaled 36,368 MT, which was 8.9 percent higher than the previous month but was 1.7 percent lower than March 2014. Imports of fresh, chilled pork totaled 28,976 MT, which was 40.8 percent higher than the previous month and was 16.2 percent higher than March 2014. During March, Japan imported 21,431 MT of pork from the U.S. This was up 9.5 percent over February and was up 2.6 percent over March 2014. Total year-to-date pork imports from the U.S. were 12.2 percent less than last year, amounting to 56,416 MT. The U.S. was the largest supplier of pork to Japan with 32.8 percent of the total imports. Pork imports from Canada during March rose 91.6 percent over the previous month and 56.2 percent over March 2014 to 18,101 MT. Year-to-date pork imports from Canada totaled 38,405 MT, which was 27.7 percent higher than a year ago. Japan’s pork imports from Denmark during March totaled 7,837 MT, which was up 7.7 percent over the previous month but was down 19.9 percent from March 2014. Year-to-date pork imports from Denmark were 26.5 percent lower than last year, amounting to 22,745 MT. Overall, Japan’s total pork imports during the first quarter equaled 173,239 MT, 6.8 percent below the corresponding period a year ago. Japan’s pork marketings during February totaled 129,413 MT, which was 2.5 percent lower than the previous month and was 3.3 percent lower than a year ago. Imported pork marketings totaled 60,338 MT, which was 2.4 percent less than last year. Marketings of domestic pork imports were down 4.1 percent from a year ago, equaling 69,075 MT. At the end of February, Japan’s pork stocks totaled 179,343 MT, which was down 2.9 percent from the previous month but was up 11.5 percent over a year ago. Stocks of imported pork totaled 161,450 MT, 16.2 percent more than a year ago. Stocks of domestic pork equaled 17,893 MT, 18.2 percent lower than last year. Additional data on Japan’s red meat trade can be found on the ALIC website at http://lin.alic.go.jp/alic/statis/dome/data2/e_nstatis.htm.

Oceania: Australia’s Department of Agriculture, Fisheries and Forestry (DAFF) recently published Australia’s red meat export data for April 2015. According to the statistics, Australia’s lamb exports during April fell 15.2 percent from March to 19,860 MT. However, this was up 11.8 percent over April 2014. During April, Australia exported 5,913 MT of lamb to the Middle East. This was 9.5 percent lower than the previous month but was 17.0 percent higher than April 2014. Yearto-date lamb exports to the Middle East totaled 21,950 MT, which was 14.8 percent more than a year ago. The Middle East was Australia’s largest lamb export market with 28.0 percent of the total exports. Lamb exports to the U.S. during April equaled 4,214 MT, which was 3.9 percent less than the previous month but was 36.1 percent more than April 2014. Total year-to-date lamb exports to the U.S. were up 10.3 percent over last year, amounting to 16,516 MT. During April, Australia’s lamb exports to China equaled 275 MT. This was down 91.9 percent from the previous month and was down 91.1 percent from April 2014. Year-to-date lamb exports to China totaled 11,419 MT, which was 6.7 percent below last year. Overall, Australia’s total year-to-date lamb exports equaled 78,457 MT, which was 7.5 percent more than the same period a year ago. In the meantime, during April, Australia’s mutton exports totaled 12,253 MT, which was 21.9 percent lower than March and was 18.0 percent lower than April 2014. Mutton exports to the Middle East during April fell 26.5 percent from the previous month to 4,384 MT. Also, this was 14.2 percent lower than April 2014. Total year-to-date mutton exports to the Middle East were 5.9 percent lower than a year ago, amounting to 19,452 MT. The Middle East was Australia’s primary mutton export market with 34.3 percent of the total. During April, Australia exported 2,662 MT of mutton to China. This was up 8.7 percent over the previous month but was down 18.4 percent from April 2014. Year-to-date mutton exports to China totaled 12,619 MT, 29.8 percent less than last year. Mutton exports to Malaysia during April fell 46.6 percent from the previous month to 1,094 MT. Also, this was 20.0 percent lower than April 2014. Year-to-date mutton exports to Malaysia were 3.8 percent higher than last year, totaling 5,719 MT. Overall, Australia’s total year-to-date mutton exports equaled 56,753 MT, which was 17.0 percent below the same period a year ago.

During April, Australia’s beef and veal exports fell 8.1 percent from March to 113,431 MT. However, this was up 16.4 percent over April 2014. More specifically, exports of frozen beef totaled 85,588 MT, which accounted for 75.5 percent of the total. Exports of fresh, chilled beef totaled 24,843 MT. During April, Australia exported 38,612 MT of beef to the U.S. Although, this was 8.1 percent lower than the previous month, it was 54.6 percent higher than April 2014. Total year-to-date beef exports to the U.S. equaled 144,270 MT, which was 55.9 percent greater than a year ago. The U.S. was Australia’s leading beef export market with 35.1 percent of the total. Beef exports to Japan during April fell 12.4 percent from the previous month but rose 18.5 percent over April 2014 to 24,581 MT. Year-to-date beef exports to Japan totaled 92,467 MT, 14.2 percent above a year ago. Year-to-date beef exports to South Korea were 1.0 percent more than a year ago, totaling 47,866 MT. Year-to-date pork exports to China totaled 40,788 MT, 20.3 percent lower than last year. Overall, Australia’s total year-to-date beef and veal exports equaled 410,486 MT, which was 10.0 percent above the same period a year ago. To obtain additional data on Australia’s red meat exports, visit the DAFF website at http://www.daff.gov.au/.

South Africa’s Poultry Situation: The South African per capita consumption of poultry meat, of which most is chicken meat, is estimated at 36 kg per annum. In comparison, each South African consumes only 3 kg of mutton, 5 kg pork, and 17 kg of beef per annum. Chicken meat consumption increased by about 70% since the start of the millennium and has grown to be the most important protein source in the diet of the majority of South Africans, including the poor.

Based on data, it is clear that chicken meat is the cheapest source in terms of R/kg of meat in South Africa. However since 2013 the price of chicken meat increased in percentage terms more than that of pork or beef as rises in the import tariffs of chicken meat, coupled with anti-dumping duties, escalate local prices. Since 2013 chicken meat prices in South Africa increased 13% and in the past year by more than 8% compared to an overall inflation rate of less than 5%.

Data also indicated the average landed prices for broiler meat in South Africa in January 2015, before tariff payments, decreased by 8% on a year-on-year basis and by 13% since the beginning of 2013. Thus, without tariff increases, the South African consumer would have paid at least 13% less for broiler meat compared to local price increases of 13% since 2013. Back in December 2014, USDA FAS reported the outbreaks of avian influenza in Europe (November 2014) coupled with anti-dumping duties and the recent rise in the import tariffs of broiler meat.

In 2014, South Africa imported 368,935 tons of broiler meat at a value of US $338 million, 4% more in quantity than in 2013, but 5% less in value terms. Imports of broiler meat represent more than 20% of local consumption as South Africa slaughtered about 1 billion broilers in 2014, equal to 1.5 million tons of meat.

South Africa banned poultry imports from Germany, the Netherlands, and the UK in December 2014 after outbreaks of highly pathogenic avian influenza (H5N8) were confirmed in November 2014 in Germany, Netherlands, and the UK. US poultry imports were also banned due to confirmations of HPAI (H5N1, H5N2, and H5N8) with any poultry meat derived from birds slaughtered on or after November 25, 2014 and any poultry meat shipped on or after December 25, 2014 as being ineligible.

Despite current trade issues relating to avian influenza other longstanding issues exist with regard to South Africa, the EU, Brazil, and the US. In July 2014, South Africa imposed anti-dumping duties (ADDs) ranging from 22% to 73% on imports of frozen bone-in chicken from 3 of South Africa’s trade partners in the EU (Germany, Netherlands, and the UK), which were to expire in early 2015. The implementation dates were from July 4, 2014 up to and including January 2, 2015. The ADDs were introduced after the South African Poultry Association (SAPA) brought a dumping application to the International Trade Administration Commission (ITAC) against these 3 countries. South Africa does not impose import duties on EU members, because of a trade cooperation agreement signed in 2001; however it is allowed to impose anti-dumping duties where there is a prima facie case that the local industry is suffering material injury from dumping by EU members. The introduction of ADDs follows a general increase of import duties on 5 poultry products in September 2013.

In February 2012, South Africa’s ITAC introduced provisional ADDs of 62.93% on Brazilian imports of whole chickens and 46.59% on boneless cuts. However in June 2012 Brazil filed a complaint with the WTO and in December 2012 the South African government decided not to impose definitive ADDs on whole chickens and boneless cuts from Brazil. In September 2013, South Africa also increased tariffs on imports of Brazilian poultry.

At present, South Africa and the US remain at odds in their negotiations over ADDs imposed on US poultry imports back in 2000. Most recently, the US Senate Committee on Finance approved a bipartisan amendment to the African Growth Opportunity Act (AGOA), a trade agreement made between the US and about 35 African countries in 2000, which gives trading preferences and is set to expire in September 2015. If passed by the full Senate, the amendment will give the US power to review countries’ eligibility for AGOA preferences, change the process for which it happens, and allow the US to limit or temporarily suspend benefits without termination. The amendment is part of the heavily debated AGOA Extension and Enhancement Act of 2015, a bill that will extend the AGOA for another 10 years instead of 15 years. Some Senators are seeking stronger measures against South Africa, specifically a 3-year probation period with regular eligibility reviews. Yet other discussions have involved the possibility of a quota system that would allow for similar trade restrictions as those in place prior to 2000. The AGOA is unimportant to South Africa’s domestic poultry industry, however it is very important to its’ other industries (e.g. automotive, etc.). On another note, the new legislation to renew AGOA could cause serious implications between South Africa and the EU.

South Africa first imposed ADDs on frozen bone-in chicken imports from the US in 2000 and in 2012 extended and increased the ADDs for another 5 years. The ADDs were increased to R9.40 per kilogram, without differentiating between suppliers as in the past. Originally the ADDs ranged from R2.24/kg to R6.96/kg depending on the supplier. The long-standing ADDs against US bone-in chicken keep the US as a supplier of only niche products, like MDM and livers, to South Africa. During the Annual Bilateral Forum with the South African Government, USDA/Pretoria approached the Department of Trade and Industry (DTI) about the ADDs; DTI was disinterested in taking any unilateral action to remove the ADDs and suggested the US poultry industry put forth a legal challenge during the next sunset review in 2017. Although the US was the 9th largest supplier of poultry to South Africa in 2013 it accounts for less than 1% of the total import market.

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