Port congestion growing ‘critical’ for US beef industry
12/02/2015
However, the US Meat Export Federation (USMEF) warned that the US dock strikes are starting to have severe effects, leading to customers seeking product elsewhere.
The value of beef exports was $7.13 billion – an increase of 16% (and nearly $1 billion) over the previous record set in 2013. Export volume was just under 1.2 million metric tons (mt) – which was short of the 2011 record.
USMEF CEO Philip Seng said: “In the past five years, per-head export value has more than doubled for beef producers and has increased more than 60% for pork.”
Exports overcame significant challenges, including market access restrictions in Russia and China, an appreciating US dollar and the shipping difficulties related to a labour dispute in the West Coast ports.
“2014 was an outstanding year for red meat exports, but headwinds continued to mount late in the year,” Mr Seng added.
“The West Coast port congestion is extremely troubling, because the delays faced by exporters in December have become even more severe in 2015. If this dispute is not resolved soon, the meat industry will have to win back long-term customers who still want our product, but have no choice but to seek alternative suppliers.
“The situation is especially critical because Asian markets take a large volume of chilled US beef and pork, valued at more than $2 billion in 2014.”
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