U.S. Livestock & Meat Trade Update – Dec ’16
Executive Summary
U.S. livestock and meat trade figures provided by USDA were recently updated with values spanning through Oct ’16. Highlights from the updated report include:
Beef & Veal – Net Trade Finishes Positive for the First Time in Ten Months
According to USDA, Oct ’16 U.S. beef & veal export volumes increased 3.2% MOM on a daily average basis to a new two year high while remaining higher on a YOY basis for the fourth consecutive month, finishing up 16.9%. Of the major export destinations, YOY increases in export volumes were led by shipments destined to South Korea (+66.0%), followed by shipments destined to Japan (+35.9%) and combined shipments to Hong Kong, Taiwan and China (+4.6%). Export volumes destined to South Korea, Japan and China more than offset declined in volume shipped to Mexico (-12.1%) and Canada (-5.9%). U.S. beef & veal export volumes destined to the aforementioned countries accounted for over 85% of all beef & veal export volumes during Oct ’16.
Oct ’16 U.S. beef & veal import volumes remained lower on a YOY basis for the 13th consecutive month, finishing down 4.9%. The increase in beef & veal export volumes, coupled with the decline in import volumes, resulted in Oct ’16 net beef & veal trade finishing at a positive level for the first time in ten months. ’15-’16 annual beef & veal net trade finished negative for the third consecutive year despite export volumes increasing by 3.7% YOY and import volumes declining by 16.6% throughout the 12 month period.
Chicken –Net Broiler Trade Increases on a YOY Basis for the Fourth Consecutive Month
Oct ’16 U.S. broiler export volumes declined 7.1% MOM on a daily average basis from the 23 month high experienced during the previous month but remained higher on a YOY basis for the fourth consecutive month, increasing by 8.1%. YOY declines in export volumes were experienced across the major export destinations of Mexico (-17.9%), Canada (-7.2%) and combined shipments to Hong Kong, Taiwan and China (-23.2%), however broiler export volumes to all other destinations increased 26.3% throughout the month.
U.S. broiler import volumes declined on a YOY basis for the fifth consecutive month during Oct ’16, finishing down 13.6%. Broiler import volumes remain at insignificant levels relative to export volumes, with Oct ’16 imports amounting to less than 2.0% of export volumes. The YOY increase in broiler export volumes, coupled with the YOY decline in import volumes, resulted in U.S. broiler net trade finishing up 8.6% YOY during Oct ’16. Net broiler trade declined 10.9% throughout the ’14-’15 production season and finished down an additional 3.3% throughout the ’15-’16 production season as export volumes declined 3.1% while import volumes increased 8.1%.
Combined net trade of U.S. pork, beef and broilers increased on a YOY basis for the tenth time in the past 12 months during Oct ’16. Combined net trade of pork, beef and broilers had declined over 18 consecutive months from May ’14 – Oct ’15 and finished down 21.5% YOY throughout the ’14-’15 production season prior to rebounding by 6.2% throughout the ’15-’16 production season.
- Net pork trade increased on a YOY basis for the sixth consecutive month during Oct ’16, finishing up 15.2%.
- Net beef & veal trade finished positive for the first time in ten months during Oct ’16 as export volumes remained strong and import volumes declined on a YOY basis for the 13th consecutive month.
- Net broiler trade increased on a YOY basis for the fourth consecutive month during Oct ’16, finishing 8.6% above the previous year.
Beef & Veal – Net Trade Finishes Positive for the First Time in Ten Months
According to USDA, Oct ’16 U.S. beef & veal export volumes increased 3.2% MOM on a daily average basis to a new two year high while remaining higher on a YOY basis for the fourth consecutive month, finishing up 16.9%. Of the major export destinations, YOY increases in export volumes were led by shipments destined to South Korea (+66.0%), followed by shipments destined to Japan (+35.9%) and combined shipments to Hong Kong, Taiwan and China (+4.6%). Export volumes destined to South Korea, Japan and China more than offset declined in volume shipped to Mexico (-12.1%) and Canada (-5.9%). U.S. beef & veal export volumes destined to the aforementioned countries accounted for over 85% of all beef & veal export volumes during Oct ’16.
Oct ’16 U.S. beef & veal import volumes remained lower on a YOY basis for the 13th consecutive month, finishing down 4.9%. The increase in beef & veal export volumes, coupled with the decline in import volumes, resulted in Oct ’16 net beef & veal trade finishing at a positive level for the first time in ten months. ’15-’16 annual beef & veal net trade finished negative for the third consecutive year despite export volumes increasing by 3.7% YOY and import volumes declining by 16.6% throughout the 12 month period.
Chicken –Net Broiler Trade Increases on a YOY Basis for the Fourth Consecutive Month
Oct ’16 U.S. broiler export volumes declined 7.1% MOM on a daily average basis from the 23 month high experienced during the previous month but remained higher on a YOY basis for the fourth consecutive month, increasing by 8.1%. YOY declines in export volumes were experienced across the major export destinations of Mexico (-17.9%), Canada (-7.2%) and combined shipments to Hong Kong, Taiwan and China (-23.2%), however broiler export volumes to all other destinations increased 26.3% throughout the month.
U.S. broiler import volumes declined on a YOY basis for the fifth consecutive month during Oct ’16, finishing down 13.6%. Broiler import volumes remain at insignificant levels relative to export volumes, with Oct ’16 imports amounting to less than 2.0% of export volumes. The YOY increase in broiler export volumes, coupled with the YOY decline in import volumes, resulted in U.S. broiler net trade finishing up 8.6% YOY during Oct ’16. Net broiler trade declined 10.9% throughout the ’14-’15 production season and finished down an additional 3.3% throughout the ’15-’16 production season as export volumes declined 3.1% while import volumes increased 8.1%.
Combined net trade of U.S. pork, beef and broilers increased on a YOY basis for the tenth time in the past 12 months during Oct ’16. Combined net trade of pork, beef and broilers had declined over 18 consecutive months from May ’14 – Oct ’15 and finished down 21.5% YOY throughout the ’14-’15 production season prior to rebounding by 6.2% throughout the ’15-’16 production season.