U.S. Livestock & Meat Trade Update – Mar ’17
Executive Summary
U.S. livestock and meat trade figures provided by USDA were recently updated with values spanning through Jan ’17. Highlights from the updated report include:
Beef & Veal – Net Trade Finishes Negative for the First Time in Four Months
According to USDA, Jan ’17 U.S. beef & veal export volumes declined 16.9% MOM on a daily average basis but remained higher on a YOY basis for the seventh consecutive month, finishing up 20.9% to a 16 year seasonal high. Of the major export destinations, YOY increases in export volumes were led by shipments destined to Mexico (+41.2%), followed by shipments destined to Japan (+40.5%), South Korea (+38.3%), and Canada (+10.6%). Export volumes destined to Mexico, Japan, South Korea and Canada more than offset declines in combined shipments destined to Hong Kong, Taiwan and China (-16.1%). U.S. beef & veal export volumes destined to the aforementioned countries accounted for over 85% of all beef & veal export volumes during Jan ’17.
Jan ’17 U.S. beef & veal import volumes declined on a YOY basis for the first time in three months, finishing down 24.7%. Beef & veal import volumes outpaced export volumes throughout Jan ’17, resulting in net beef & veal trade finishing at a negative level for the first time in four months. ’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 three year high throughout the first third of the production season, despite the most recent decline.
Chicken –Net Broiler Trade Increases on a YOY Basis for the Seventh Consecutive Month
Jan ’17 U.S. broiler export volumes declined 10.2% MOM on a daily average basis but remained up 12.1% YOY, finishing higher for the seventh consecutive month. Export volumes destined to Mexico (-1.9%) and Canada (-4.2%) each finished lower on a YOY basis for the eighth consecutive month however combined shipments destined to Hong Kong, Taiwan and China (+8.8%) finished higher on a YOY basis for the second consecutive month. Broiler export volumes to all other destinations increased 19.8% throughout the month, led by product destined to South Africa, Zaire and Kazakhstan.
U.S. broiler import volumes increased 20.6% YOY however volumes remain at insignificant levels relative to export volumes, as Jan ’17 imports amounted to just 2.3% of export volumes. The YOY increase in broiler export volumes continued to outpace the YOY increase in import volumes, resulted in U.S. broiler net trade finishing up 11.9% YOY during Jan ’17. Net broiler trade declined 3.3% throughout the ’15-’16 production season however ’16-’17 YTD net broiler trade has rebounded by 15.1% throughout the first third of the production season.
Combined net trade of U.S. pork, beef and broilers increased on a YOY basis for the ninth consecutive month during Jan ’17. The YOY increase in the combined net trade of pork, beef and broilers was the second largest experienced throughout the past five years, trailing the Dec ’16 YOY increase by just 0.2%.
- Net pork trade increased on a YOY basis for the ninth consecutive month during Jan ’17, finishing up 31.3%, as export volumes reached a five year seasonal high.
- Net beef & veal trade finished negative for the first time in four months during Jan ’17, despite export volumes reaching a 16 year seasonal high.
- Net broiler trade increased on a YOY basis for the seventh consecutive month during Jan ’17, finishing 11.9% above the previous year, as export volumes remained strong.
Beef & Veal – Net Trade Finishes Negative for the First Time in Four Months
According to USDA, Jan ’17 U.S. beef & veal export volumes declined 16.9% MOM on a daily average basis but remained higher on a YOY basis for the seventh consecutive month, finishing up 20.9% to a 16 year seasonal high. Of the major export destinations, YOY increases in export volumes were led by shipments destined to Mexico (+41.2%), followed by shipments destined to Japan (+40.5%), South Korea (+38.3%), and Canada (+10.6%). Export volumes destined to Mexico, Japan, South Korea and Canada more than offset declines in combined shipments destined to Hong Kong, Taiwan and China (-16.1%). U.S. beef & veal export volumes destined to the aforementioned countries accounted for over 85% of all beef & veal export volumes during Jan ’17.
Jan ’17 U.S. beef & veal import volumes declined on a YOY basis for the first time in three months, finishing down 24.7%. Beef & veal import volumes outpaced export volumes throughout Jan ’17, resulting in net beef & veal trade finishing at a negative level for the first time in four months. ’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 three year high throughout the first third of the production season, despite the most recent decline.
Chicken –Net Broiler Trade Increases on a YOY Basis for the Seventh Consecutive Month
Jan ’17 U.S. broiler export volumes declined 10.2% MOM on a daily average basis but remained up 12.1% YOY, finishing higher for the seventh consecutive month. Export volumes destined to Mexico (-1.9%) and Canada (-4.2%) each finished lower on a YOY basis for the eighth consecutive month however combined shipments destined to Hong Kong, Taiwan and China (+8.8%) finished higher on a YOY basis for the second consecutive month. Broiler export volumes to all other destinations increased 19.8% throughout the month, led by product destined to South Africa, Zaire and Kazakhstan.
U.S. broiler import volumes increased 20.6% YOY however volumes remain at insignificant levels relative to export volumes, as Jan ’17 imports amounted to just 2.3% of export volumes. The YOY increase in broiler export volumes continued to outpace the YOY increase in import volumes, resulted in U.S. broiler net trade finishing up 11.9% YOY during Jan ’17. Net broiler trade declined 3.3% throughout the ’15-’16 production season however ’16-’17 YTD net broiler trade has rebounded by 15.1% throughout the first third of the production season.
Combined net trade of U.S. pork, beef and broilers increased on a YOY basis for the ninth consecutive month during Jan ’17. The YOY increase in the combined net trade of pork, beef and broilers was the second largest experienced throughout the past five years, trailing the Dec ’16 YOY increase by just 0.2%.