U.S. Livestock & Meat Trade Update – Feb ’17
Executive Summary
U.S. livestock and meat trade figures provided by USDA were recently updated with values spanning through Dec ’16. Highlights from the updated report include:
Beef & Veal – Net Trade Finishes Positive for the Third Consecutive Month
According to USDA, Dec ’16 U.S. beef & veal export volumes declined 2.6% MOM on a daily average basis from the three year high experienced throughout the previous month but remained higher on a YOY basis for the sixth consecutive month, finishing up 29.7% to a record seasonal high. Of the major export destinations, YOY increases in export volumes were widespread and led by shipments destined to South Korea (+89.2%), followed by shipments destined to Japan (+53.7%), Canada (+10.9%), Mexico (+9.3%) and combined shipments to Hong Kong, Taiwan and China (+2.2%). U.S. beef & veal export volumes destined to the aforementioned countries accounted for over 85% of all beef & veal export volumes during Dec ’16.
Dec ’16 U.S. beef & veal import volumes increased on a YOY basis for the second consecutive month, finishing up 7.8%. Beef & veal export volumes continued to outpace import volumes throughout Dec ’16, however, resulting in net beef & veal trade finishing at a positive level for the third consecutive month. ’15-’16 annual beef & veal net trade finished negative for the third consecutive year however ’16-’17 YTD beef & veal net trade is on pace to reach a four year high throughout the first quarter of the production season.
Chicken –Net Broiler Trade Increases on a YOY Basis for the Sixth Consecutive Month
Dec ’16 U.S. broiler export volumes increased 7.3% MOM on a daily average basis and 27.7% YOY, finishing higher on a YOY basis for the sixth consecutive month. Export volumes destined to Mexico (-5.4%) and Canada (-2.6%) each finished lower on a YOY basis for the seventh consecutive month however combined shipments destined to Hong Kong, Taiwan and China (+12.6%) finished higher on a YOY basis for the first time in three months. Broiler export volumes to all other destinations increased 49.2% throughout the month, led by product destined to Cuba and Turkey.
U.S. broiler import volumes declined on a YOY basis for the sixth time in the past seven months during Dec ’16, finishing down 20.5%. Broiler import volumes remain at insignificant levels relative to export volumes, as Dec ’16 imports amounted to just 1.7% 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 29.1% YOY during Dec ’16. The YOY increase in broiler net trade was the largest experienced in over five years on a percentage basis. Net broiler trade declined 3.3% throughout the ’15-’16 production season however ’16-’17 YTD net broiler trade has rebounded by 16.2% throughout the first quarter of the production season.
Combined net trade of U.S. pork, beef and broilers increased on a YOY basis for the eighth consecutive month during Dec ’16. The YOY increase in the combined net trade of pork, beef and broilers was the largest experienced throughout the past five years.
- Net pork trade increased on a YOY basis for the eighth consecutive month during Dec ’16, finishing up 23.2%, as export volumes reached a five year seasonal high.
- Net beef & veal trade finished positive for the third consecutive month during Dec ’16 as export volumes reached a record seasonal high.
- Net broiler trade increased on a YOY basis for the sixth consecutive month during Dec ’16, finishing 29.1% above the previous year, a five year high on a percentage basis.
Beef & Veal – Net Trade Finishes Positive for the Third Consecutive Month
According to USDA, Dec ’16 U.S. beef & veal export volumes declined 2.6% MOM on a daily average basis from the three year high experienced throughout the previous month but remained higher on a YOY basis for the sixth consecutive month, finishing up 29.7% to a record seasonal high. Of the major export destinations, YOY increases in export volumes were widespread and led by shipments destined to South Korea (+89.2%), followed by shipments destined to Japan (+53.7%), Canada (+10.9%), Mexico (+9.3%) and combined shipments to Hong Kong, Taiwan and China (+2.2%). U.S. beef & veal export volumes destined to the aforementioned countries accounted for over 85% of all beef & veal export volumes during Dec ’16.
Dec ’16 U.S. beef & veal import volumes increased on a YOY basis for the second consecutive month, finishing up 7.8%. Beef & veal export volumes continued to outpace import volumes throughout Dec ’16, however, resulting in net beef & veal trade finishing at a positive level for the third consecutive month. ’15-’16 annual beef & veal net trade finished negative for the third consecutive year however ’16-’17 YTD beef & veal net trade is on pace to reach a four year high throughout the first quarter of the production season.
Chicken –Net Broiler Trade Increases on a YOY Basis for the Sixth Consecutive Month
Dec ’16 U.S. broiler export volumes increased 7.3% MOM on a daily average basis and 27.7% YOY, finishing higher on a YOY basis for the sixth consecutive month. Export volumes destined to Mexico (-5.4%) and Canada (-2.6%) each finished lower on a YOY basis for the seventh consecutive month however combined shipments destined to Hong Kong, Taiwan and China (+12.6%) finished higher on a YOY basis for the first time in three months. Broiler export volumes to all other destinations increased 49.2% throughout the month, led by product destined to Cuba and Turkey.
U.S. broiler import volumes declined on a YOY basis for the sixth time in the past seven months during Dec ’16, finishing down 20.5%. Broiler import volumes remain at insignificant levels relative to export volumes, as Dec ’16 imports amounted to just 1.7% 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 29.1% YOY during Dec ’16. The YOY increase in broiler net trade was the largest experienced in over five years on a percentage basis. Net broiler trade declined 3.3% throughout the ’15-’16 production season however ’16-’17 YTD net broiler trade has rebounded by 16.2% throughout the first quarter of the production season.
Combined net trade of U.S. pork, beef and broilers increased on a YOY basis for the eighth consecutive month during Dec ’16. The YOY increase in the combined net trade of pork, beef and broilers was the largest experienced throughout the past five years.