Export volumes for the period were down 5% for pork, 10% for beef and 13% for lamb.
The value of those exports were also down in H1 compared to the same period in 2014, with pork down 16% to $2.88 billion; beef remained steady at $3.26bn while lamb was down by 27% in value to $10.1m.
“We were aware that exports would be facing obstacles in 2015, and that keeping pace with last year’s record performance would be difficult,” said Philip Seng, USMEF president and CEO.
“The first-quarter slump was partly due to the West Coast port labour impasse, as well as intense competition from countries that continue to recognise opportunities in several markets. We were expecting to see a stronger rebound in the second quarter – and that did not materialise.”
Seng added that, while marketing budgets remain flat, competitors are beefing up efforts to capture larger shares of the red meat market.
He cited increased competition from the European Union, which has been targeting pork exports to Asia in the wake of the Russian ban and the strong cattle market in Australia. The strong US dollar is also a major contributory factor.
Pork
June pork exports were down 4% from a year ago. With pork prices down significantly from last year’s high levels, export values fell 22% year-on-year to $454m.
June pork exports to Mexico were the largest since March, up 13% from a year ago. While H1 export value ($619.3m, down 18%) reflected lower prices for hams and other cuts shipped to Mexico, export volume remained very strong (up 6%).
Japan remained the leading value destination for US pork, despite a 20% decline from last year’s pace to $835.4m. Export volume to Japan fell 13%.
Pork exports to South Korea moderated in June but were still up 55% from a year ago.
Exports to the China/Hong Kong region fell 17% in volume and 22% in value ($330.9m). Meanwhile, exports to Canada by volume were down 6% and value fell 10% to $382.7m.
“Our limited access to China has become a major obstacle for US pork, especially with competition intensifying in so many other global markets,” Seng said. “It’s a situation that absolutely must be addressed in order for US exports to regain momentum.”
Beef
Beef export volume in June was down 8% from a year ago while export value fell 9% to $578.9m.
Beef exports to South Korea overcame a slow start in 2015, finishing the first half up 8% in volume and 12% in value ($423.7m). June exports were the largest in more than two years, up 30% and valued at $81.8m (up 17%).
H1 beef exports to Taiwan were up 2% in volume and 13% in value ($150.5m). Exports to Japan were down 2% from a year ago in both volume and value ($676.7m).
Exports to Mexico fell 7% in volume and 2% in value, as the weakness of the peso versus the US dollar has had a growing impact on beef demand.
Meanwhile, the Hong Kong market slowed, with exports falling 18% in volume and 12% in value ($434.4m).
Lamb
US lamb exports endured a difficult first half, but volume improved in June, increasing 9% from a year ago. Despite the increase, June export value was still down 30% to $1.8m, the data revealed.
H1 exports were down 13% in volume and 27% in value ($10.1m) from a year ago. While lamb exports achieved promising growth in the Middle East and other emerging markets, these results were offset by sharp declines in Canada and Mexico, it said.