Beef exports in January had been down 15.7 % 12 months over 12 months. Regardless of file beef exports in 2022, indicators of a weakening beef commerce image had been creating late within the 12 months with beef exports down 12 months over 12 months in each November and December. A powerful U.S. greenback peaked in late 2022 and has decreased, however stays excessive, offered export headwinds that seem like taking a toll.
The largest lower in January exports was South Korea, down 36.8 % 12 months over 12 months. The greenback appreciation to the South Korean Gained was significantly acute in late 2022 however has moderated considerably since final October. In 2022, beef exports to South Korea elevated 3.2 % to a brand new file stage and giving South Korea a 22.8 % share of complete U.S. beef exports, remaining the quantity two export market, however simply fractionally decrease than Japan.
Beef exports to China/Hong Kong had been additionally down 24.2 % 12 months over 12 months in January. Slower beef exports to China/HK weren’t a difficulty of change charges as a lot because the broader slowdown within the Chinese language financial system, maybe aggravated by political tensions between China and the U.S. China/HK was the quantity three beef export market in 2022 with a 20.1 % share of complete beef exports. Beef exports to China/HK grew by 7.1 % 12 months over 12 months in 2022, a lot slower than the earlier two years however nonetheless essentially the most progress amongst main U.S. beef export markets.
There was some excellent news within the January beef export knowledge. Regardless of change charge headwinds, January beef exports to Japan had been up 6.9 % 12 months over 12 months. Beef exports to Japan decreased 1.9 % yearly in 2022. Japan stays the biggest export marketplace for the U.S., with a 22.9 % share of complete beef exports in 2022.
Beef exports to Mexico additionally elevated, up 30.8 % 12 months over 12 months in January. This follows a ten.3 % lower 12 months over 12 months for the whole 12 months in 2022. The Mexican Peso didn’t expertise the identical forex devaluation to the U.S. greenback as did the Asian currencies in 2022. Mexico was the quantity 4 U.S. beef export market in 2022 with an 8.0 % share of complete beef exports.
January beef exports to the quantity 5 market Canada had been about equal to 1 12 months in the past, up simply 0.4 % 12 months over 12 months. Canada represented a 7.7 % share of complete beef exports in 2022. Beef exports to the quantity six beef export market, Taiwan, had been down 34.0 % 12 months over 12 months in January. In 2022, beef exports to Taiwan had been 5.7 % of complete U.S. beef exports. The highest six beef export markets accounted for 87.2 % of beef exports in 2022.
Challenges for beef exports are prone to enhance in 2023 because the headwinds as a result of sturdy greenback will proceed. Moreover, anticipated decreases in beef manufacturing started in February and can lower beef availability and hold wholesale beef costs sturdy. Beef demand, together with worldwide demand, stays a big concern going ahead as declining beef manufacturing will strain beef costs to push even larger than present ranges.
