U.S. Beef Exports Growing, Not in Japanese Market

(DENVER, CO) Last year South Korea surpassed Mexico as the second-largest destination for U.S. beef exports, and in 2019 it continues to close the gap on leading market Japan. Exports to Korea remained on a record pace in June, increasing two percent from a year ago to more than 25-thousand metric tons, while value climbed 15 percent to a record $178.3 million. These results pushed first-half exports to Korea 12 percent above last year in volume (126,879 mt) and 15 percent higher in value ($921.8 million). U.S. beef now accounts for 61 percent of Korea’s chilled beef imports, up from 57 percent in the first half of last year, with chilled volume increasing seven percent as well (26,537 mt). Beef exports to Taiwan finished a very strong second quarter with June shipments reaching a new monthly high of 66-hundred metric tons, up 40 percent from a year ago ($58 million). First-half exports to Taiwan were 16 percent above last year’s record pace in volume (31,132 mt) and 11 percent higher in value ($276.2 million). But in Japan, U.S. beef faces a significant tariff rate disadvantage, where June exports totaled just less than 30-thousand metric tons, down four percent year-over-year, while value was down seven percent to $179 million. For the first half of the year, exports to Japan were slightly below last year’s pace in both volume (157,839 mt) and value (just over $1 billion). Japan’s imports of Australian beef have also slowed this year, but first-half imports from Canada, New Zealand, and Mexico have been higher, offering a glimpse of the upside opportunities in the market when tariff rates are lowered.