International Meat Review - 4 February 2010

The funding was allocated under the Market Access Program (MAP) and the Foreign Market Development (FMD) Cooperator Program. Both programs are administered by the USDA Foreign Agricultural Service (FAS). To view the press released and obtain a list of the allocations, visit the USDA website at http://www.usda.gov/. To learn more about the programs, go to the FAS website at http://www.fas.usda.gov/.

North America

On January 29, the USDA National Agricultural Statistics Service (NASS) published its semi-annual Cattle report. According to the data, the number of cattle and calves in the U.S. on January 1, 2010 totaled 93.70 million head. This was nearly 1.0 percent less than a year ago. Cows and heifers that have calved equaled 40.46 million head, which was down 1.4 percent from 2009. Of the total cows and heifers, beef cows equaled 31.78 million head, 1.1 percent lower than a year earlier. Heifers weighing more than 500 pounds numbered 19.67 million head. This was slightly higher than a year ago. More specifically, the number of heifers for beef cow replacement was down 1.7 percent from a year ago, amounting to 5.44 million head. Steers weighing more than 500 pounds totaled 16.44 million head, 2.0 percent lower than 2009. The inventory of calves weighing less than 500 pounds was unchanged from a year ago, totaling 14.95 million head. The number of cattle and calves on feed for slaughter in all feedlots on January 1 equaled 13.64 million head, which was 1.5 percent less than a year ago. During 2009 the calf crop totaled 35.82 million head, which was down almost 1.0 percent from 2008. The state with the largest concentration of cattle was Texas with 14.2 percent of the total inventory, or 13.30 million head. To obtain the entire report, visit the NASS website at http://www.nass.usda.gov/.

Additionally, on January 29, USDA NASS released its semi-annual Sheep and Goats report. According to the numbers, the sheep and lamb inventory in the U.S. on January 1, 2010 equaled 5.63 million head. This was down 2.0 percent from 2009. The number of breeding sheep and lambs were 1.3 percent lower than a year ago, amounting to 4.19 million head. Specifically, replacement lambs under one year of age equaled 655,000 head, 1.2 percent more than a year ago. The number of ewes, one year and older, declined 1.9 percent from 2009 to 3.34 million head. Market sheep and lambs totaled 1.44 million head. This was 4.0 percent lower than 2009. Market lambs weighing less than 65 pounds equaled 360,000 head, 2.9 percent higher than a year ago. Market lambs weighing 65 to 84 pounds totaled 172,000 head, which was nearly 1.0 percent higher than a year ago. The number of market lambs weighing 85 to 105 pounds fell 12.4 percent from last year to 275,000 head. Market lambs weighing more than 105 pounds totaled 548,000 head, which was down 6.3 percent from a year ago. During 2009, the U.S. lamb crop equaled 3.69 million head, a little less than 2008. Texas had the largest concentration of sheep with 830,000 head, which accounted for 14.7 percent of the total inventory. Shorn wool production in the U.S. during 2009 totaled 30.86 million pounds, which was 6.4 percent below 2008. The price per pound for wool was 79 cents, compared to 99 cents in 2008. In the meantime, on January 1, 2010, the U.S. total goat inventory equaled 3.04 million head. This was down slightly from 2009. The breeding goat inventory was unchanged from 2009 with 2.54 million head. During 2009, the U.S. kid crop equaled 1.94 million head, which was down 1.0 percent from 2008. To view the complete report, go to the NASS website at http://www.nass.usda.gov/.

On January 22, USDA NASS released its monthly Cattle on Feed report. According to the statistics, the number of cattle and calves on feed for the U.S. slaughter market for feedlots with a capacity of 1,000 or more head totaled 11.01 million head on January 1, 2010. This was down 2.0 percent from one year ago and was down 9.0 percent from two years ago. During December, 1.55 million head of cattle were placed on feed, which was 6.1 percent less than one year ago and was 9.1 percent less than two years ago. Steers and steer calves on feed totaled 6.88 million head, which was 2.7 percent lower than one year ago and accounted for 62.5 percent of the total. Heifers and heifer calves on feed totaled 4.07 million head, slightly lower than a year ago. More specifically, placements of feeder cattle weighing less than 600 pounds equaled 430,000 head, which was up 1.2 percent over last year. Placements weighing 600 to 699 pounds were down 14.3 percent from last year, totaling 420,000 head. Placements weighing 700 to 799 pounds decreased 1.5 percent from a year ago, amounting to 401,000 head. Feeder cattle placements weighing more than 800 pounds totaled 295,000 head, which was 9.2 percent less than a year ago. Meanwhile, fed cattle marketings during December increased 3.5 percent over one year ago and 5.9 percent over two years ago to 1.74 million head. The complete report can be found on the NASS website at http://www.nass.usda.gov/.

On January 22, USDA NASS released its Livestock Slaughter report. According to the data, U.S. cattle slaughter during the final quarter of 2009 totaled 8.09 million head. This was down 3.5 percent from the previous quarter but was up a little over a year ago. U.S. beef production during the fourth quarter of 2009 fell 4.1 percent from the previous quarter to 6.33 billion pounds. However, this was slightly higher than a year ago. Live cattle weights at the end of December equaled 1,299 pounds, seven pounds less than a year ago due to extreme winter weather conditions. During 2009, U.S. cattle slaughter totaled 32.77 million head, which was down 3.1 percent from 2008. Total U.S. beef production during 2009 equaled 25.60 billion pounds, which was 2.3 percent lower than 2008. Meanwhile, U.S. hog slaughter during the fourth quarter of 2009 totaled 29.36 million head. Although this was up 4.3 percent over the previous quarter, it was down 2.0 percent from a year ago. Fourth quarter pork production increased 5.3 percent over the previous quarter to 5.95 billion pounds. However, this was 1.7 percent less than a year ago. Live hog weights at the end of December averaged 270 pounds, one pound less than a year ago. During 2009, total U.S. hog slaughter reached 112.61 million head, which was 2.4 percent lower than 2008. Pork production during 2009 decreased 1.5 percent from 2008 to 22.83 billion pounds. In the meantime, during the final quarter of 2009, U.S. sheep and lamb slaughter totaled 618.8 thousand head. This was up 6.3 percent over the previous quarter and was up 2.8 percent over year ago. Lamb and mutton production during the last quarter of 2009 increased 5.8 percent over the previous quarter to 41.9 million pounds. Also, this was 2.4 percent higher than a year ago. During 2009, U.S. total sheep and lamb slaughter equaled 2.32 million head, 2.9 percent less than 2008. Total lamb and mutton production during 2009 was 2.4 percent lower than 2008, amounting to 161.7 million pounds. The complete monthly report can be found on the NASS website at http://www.nass.usda.gov/.

On January 22, USDA NASS released its monthly Cold Storage report. According to the statistics, on December 31, 2009, beef in U.S. cold storage facilities totaled 429.7 million pounds. This was 12.8 percent lower than a year ago. Also, this was 9.6 percent lower than the five year average. Pork in U.S. cold storage equaled 474.8 million pounds, which was down 14.5 percent from a year ago. However, this was up slightly over the five year average. To obtain the detailed report, visit the NASS website at http://www.nass.usda.gov/.

Pacific Rim

Japan’s Ministry of Finance recently reported Japan’s October 2009 beef and pork import data, as published by the Agriculture and Livestock Industries Corporation (ALIC). According to the numbers, Japan’s beef imports during October rose 35.3 percent over the previous month and 32.8 percent over October 2008 to 49,207 MT. Specifically, frozen beef imports totaled 31,156 MT, which was up 62.0 percent over the previous month and was up 55.0 percent over October 2008. Likewise, fresh, chilled beef imports were up 5.4 percent over the previous month and were up 6.6 percent over October 2008, totaling 18,014 MT. Japan’s beef imports from Australia during October equaled 35,749 MT. This was 30.8 percent higher than the previous month and was 28.0 percent higher than October 2008. Total yearto- date beef imports from Australia were 2.7 percent more than a year ago, amounting to 306,858 MT. Australia was the leading market for Japan’s beef imports with 75.8 percent of the total. During October, Japan imported 57,593 MT of beef from the U.S., which was 35.6 percent more than September and was 45.3 percent more than October 2008. Year-to-date beef imports from the U.S. totaled 57,593 MT, which was 29.9 percent above a year ago. Japan’s beef imports from New Zealand during October rose 14.5 percent over the previous month to 1,914 MT. Also, this was 6.7 percent higher than October 2008. Year-to-date imports of beef from New Zealand were 5.1 percent less than a year ago, totaling 25,932 MT. Overall, Japan’s total year-to-date beef imports equaled 404,779 MT, which was 5.8 percent greater than the corresponding period a year ago. During October, Japan’s beef marketings totaled 80,838 MT, which was 26.6 percent more than the previous month and was 16.8 percent more than a year ago. Imported beef marketings were up 26.7 percent over a year ago, amounting to 48,571 MT. Domestic beef marketings were up 4.4 percent over a year ago, totaling 32,267 MT. At the end of October, Japan’s beef stocks equaled 87,466 MT. This was little changed from the previous month and from a year ago. Imported beef stocks totaled 75,472 MT, 2.6 percent higher than a year ago. Domestic beef stocks totaled 11,994 MT, 16.2 percent lower than a year ago.

Japan’s pork imports during October rose 9.4 percent over September to 55,365 MT. However, this was 27.2 percent less than October 2008. More specifically, frozen pork imports equaled 37,514 MT, which was up 17.0 percent over the previous month but was down 21.8 percent from October 2008. Fresh, chilled pork imports equaled 17,849 MT, which was down 3.8 percent from the previous month and was down 36.5 percent from October 2008. During October, Japan imported 22,618 MT of pork from the U.S. Although this was 10.1 percent more than the previous month, it was 29.8 percent less than October 2008. Year-to-date pork imports from the U.S. were down 13.0 percent from a year ago, amounting to 244,005 MT. Japan’s main source for pork imports was the U.S. with 41.4 percent of the total. Japan’s pork imports from Canada during October totaled 16,495 MT, which was 26.0 percent higher than the previous month but was 4.3 percent lower than October 2008. Total year-to-date pork imports from Canada equaled 141,112 MT, 1.4 percent below a year ago. Pork imports from Denmark during October fell 12.4 percent from September and 52.1 percent from October 2008 to 7,217 MT. Year-to-date pork imports from Denmark were 24.4 percent lower than a year ago, totaling 103,825 MT. Overall, Japan’s total year-to-date pork imports equaled 588,800 MT, which was 14.1 percent less than the same period a year ago. Japan’s pork marketings during October equaled 146,391 MT. This was 8.2 percent more than the previous month but was 7.9 percent less than a year ago. Marketings of imported pork totaled 63,118 MT, 19.8 percent less than a year ago. Marketings of domestic pork totaled 83,273 MT, 3.9 percent higher than a year ago. At the end of October, Japan’s pork stocks were 3.9 percent less than the previous month, amounting to 175,399 MT. Also, this was 5.3 percent less than a year ago. Stocks of imported pork were 8.0 percent lower than a year ago, totaling 147,133 MT. Domestic pork stocks equaled 28,266 MT, which was 11.1 percent more than a year ago.

South America

Recently, Argentina’s National Service of Agriculture Food, Health and Quality (SENASA) published Argentina’s fourth quarter beef export data. The numbers include fresh beef, offals, process beef and Hilton cuts. During the fourth quarter of 2009, Argentina exported 145,071 MT of beef. Although this was 14.1 percent lower than the previous quarter, it was 35.7 percent higher than a year ago. Beef exports to Russia during the final quarter of 2009 equaled 48,615 MT, which was 16.7 less than the previous quarter but was 227.9 percent more than a year ago. During 2009, Argentina exported 177,034 MT of beef to Russia. This was more than double the volume from 2008. Russia was the main beef export market for Argentina with 31.2 percent of the total. Argentina’s beef exports to Hong Kong during the final quarter of 2009 rose 21.8 percent over the previous month and 21.0 percent over a year ago to 16,678 MT. During 2009, beef exports to Hong Kong totaled 57,226 MT, which was 54.3 percent greater than 2008 and comprised 10.1 percent of Argentina’s total beef exports. During the fourth quarter, Argentina’s beef exports to Germany totaled 7,902 MT. This was down 7.9 percent from the previous quarter and was down nearly 1.0 percent from a year ago. During 2009, Argentina’s beef exports to Germany totaled 32,974 MT, which was 10.0 percent more than 2008. This accounted for 5.8 percent of Argentina’s total beef exports. Beef exports to the U.S. during the final quarter of 2009 equaled 2,320 MT. This was 24.7 percent lower than the previous quarter and was 56.8 percent lower than a year ago. Total beef exports to the U.S. during 2009 were 29.7 percent below 2008, totaling 9,734 MT. This made up 1.7 percent of the total exports. During 2009, Argentina’s largest market for exports of Hilton cuts was Germany with 58.5 percent of the total. The primary fresh beef export market was 39.1 percent of the total. The U.S. was the main export market for Argentina’s processed beef exports with 27.2 percent of the total. Of Argentina’s total beef exports during 2009, fresh beef made up 63.2 percent of the total, offals comprised 26.6 percent of the total, processed beef was 6.3 percent of the total, and Hilton cuts accounted for 3.9 percent of the total. Overall, Argentina’s total beef exports during 2009 were 50.4 percent above 2008, amounting to 571,207 MT.

Oceania

Recently, Australia’s Department of Agriculture, Fisheries, and Forestry (DAFF) published Australia’s red meat export numbers for January 2010. According to the data, during January, Australia’s beef and veal exports total 44,709 MT. This was 42.8 percent lower than the previous month and was 10.6 percent lower than January 2009. More specifically, exports of frozen beef equaled 31,138 MT, which comprised 69.6 percent of the total. Exports of fresh, chilled beef equaled 13,571 MT. During January, Australia exported 17,896 MT of beef to Japan, which was down 37.9 percent from the previous month and was down 18.3 percent from January 2009. Beef exports to Japan accounted for 40.0 percent of the total. Australia’s beef exports to the U.S. during January fell 33.0 percent from December to 9,950 MT. Also, this was 36.7 percent less than January 2009. During January, Australia exported 5,823 MT of beef to South Korea, which was 51.9 percent lower than the previous month but was 38.3 percent higher than a year ago. Australia’s beef exports to Indonesia were down 51.7 percent from the previous month and 3.9 percent from January 2009, amounting to 3,005 MT. Further data is available on the DAFF website at http://www.daff.gov.au/.

According to Meat & Livestock Weekly, on January 20, the European Union (EU) granted Australia access to its new 20,000 MT grain-fed beef quota. This will allow imports of some Australian beef into the EU on a duty-free basis. The strict product specifications of the new quota are likely to limit exports to those companies willing to operate in such a specialized market.

Further Reading

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You can view the full report by clicking here.

February 2010