DENVER, Colo. – According to year-end data released by the USDA and compiled by the U.S. Meat Export Federation, 2022 U.S. beef exports set annual records for both volume and value.

“(The year) 2022 was a ground-breaking year for U.S. beef’s international presence, with global demand stronger than I’ve seen in all my years in the industry,” said Dan Halstrom, U.S. Meat Export Federation president and CEO.

“Late in the year, exports certainly felt the impact of persistent headwinds in our large Asian markets, including depressed trading partner currencies, and COVID-19-related challenges in China,” he added, “but the long list of countries in which records were set showcases the industry’s focus on diversifying export markets.”

He said while the year ahead will be challenging due to supply constraints, “the exchange rate situation has improved, and we still see room for growth in the foodservice sector as more regions continue their gradual rebound from COVID-19.”

Despite slowing toward the end of the year, U.S. beef exports reached 1.47 million metric tons, up 2 percent from the previous high in 2021. Export value climbed to a record $11.68 billion, up 10 percent from 2021; and nearly 40 percent above the previous five-year average, the report said.

Andrew P. Griffith, University of Tennessee associate professor of agricultural and resource economics, said 1.47 million metric tons of beef exports “seems more in line with how much we typically export.”

The report said the U.S. exported a record share of its beef production in 2022, and at higher prices.

“The main driver of exports in 2022 was our increase in beef production,” Griffith said. “We produced a lot of beef domestically because of the severe drought that resulted in a large cow and heifer slaughter. Thus, the outlet for the beef was the international market. The record value of exports is simply a factor of high beef prices, paired with increased exports.”

The report said U.S. beef exports achieved annual records in many individual markets, including South Korea, China/Hong Kong, Taiwan, the Philippines, Singapore, Colombia, Guatemala, and the Dominican Republic.

“(Last) December, beef exports trended lower than a year ago at 112,707 million metric tons, down 7 percent, while value fell 21 percent to $782.6 million,” the report said. “(Last December’s) decline was due in part to a sharp drop in exports to China/Hong Kong, where demand had been constrained by persistent zero-COVID-19 policies.”

The report said China lifted most COVID-19 restrictions early last December and resumed some international travel in early January.

“Along with the recent easing of COVID-19-related cold chain regulations and inspections, these changes offer a more optimistic demand outlook for 2023,” the report said.

Griffith said, “We are really the only country that exports a large quantity of grain-finished beef. Thus, quality grade is one of the driving factors of our product because beef importers cannot get the product they get from us anywhere else.

“There are certainly countries that have some form of grain finishing, but none of them produce the product we do, and most certainly not in the quantity we do,” he said, adding, “I am sure food safety and quality control is a major supporter for places like South Korea, Japan, and Canada.

“Moreover, Japan, China/Hong Kong and South Korea were the three largest export markets for 2022, and exports remain strong to Canada and Mexico,” he said. “In addition, new markets have also been added in recent years in South America, the Mediterranean, the Caribbean and Dubai.”

He said location is part of the equation, especially for Canada, Mexico and other countries near the U.S.

“The countries further from the United States will import from countries near them, but they will import U.S. beef to meet demand for high-quality beef,” he said. “I am not sure what sets them apart other than developing economies tend to increase imports of meat, and wealth economies do not mind paying a high price for meat.”

The report said U.S. pork exports finished 2022 on “a decidedly upward trajectory” as last December shipments reached 244,718 million metric tons, up 13 percent year-over-year, and the second largest of 2022 (slightly below last November).

“December export value climbed 14 percent to $687.3 million,” the report said. “These results pushed 2022 exports to 2.67 million metric tons, down 8.5 percent from a year ago, while export value was $7.68 billion – down 5 percent from the record achieved in 2021.

“Pork exports to Mexico ended 2022 on a very high note, setting a volume record (last) December on the way to a record-breaking year,” the report added. “(Last) December exports also trended higher year-over-year to China/Hong Kong, the Dominican Republic, the Philippines, and Australia, and set a value record in Central America.”

Halstrom said, “The Mexican market has been a star performer for U.S. pork for many years, but the 2022 results were truly remarkable. In the face of growing competition in Mexico, the U.S. pork industry has expanded product offerings and found innovative ways to meet the needs of processors, retailers, and foodservice operators.

“In addition to Mexico, it is gratifying to see such a broad range of markets contributing to our recent export growth, making the prospects for 2023 very promising,” he said.

When asked what the increased demand for U.S. beef exports means for existing and new markets for the rest of 2023 and beyond, Griffith said, “I am sure we will continue to ship beef to these countries, but exports the next two to three years are going to decline because our beef production will decline the next three years. Higher beef prices will also slow exports to some degree.”

To view the full report, visit: www.usmef.org