Livestock

Leaders from around the globe are gathering in Dallas this week for the 2018 World Meat Congress (WMC). Key international stakeholders and National Pork Board leadership and staff will engage in real-time discussions of issues affecting the international marketplace for pork and other commodities. The WMC is a biennial event held in the U.S. for the first time in over two decades that brings together 700 of the world's meat industry thought leaders. The National Pork Board is one of the title sponsors of the event and will leverage that sponsorship to showcase U.S. pork in a variety of ways, including at the opening reception and a pork-themed luncheon. Also, board members and producer members of the Checkoff's International Marketing Committee will network with key international stakeholders to share details about sustainability on today's pig farms and to discuss emerging issues facing the industry. "We're excited to be here in Dallas talking about U.S. pork not as a commodity, but as a unique and special product with a story," said Terry O'Neel, National Pork Board president and a producer from Friend, Nebraska. "As an industry, we have harnessed our collective strength to elevate our position in international markets, which has led to record-setting global demand for U.S. pork." The pork industry is not unique in its growing dependence on exports to deliver returns to pork producers. In the last 10 years, U.S. agriculture has grown rapidly, shifting from exporting relatively few products to becoming heavily reliant on consumers outside of the U.S. and their intention to buy American-grown products. "It is critical that the U.S. pork industry diversify its global market opportunities," said Craig Morris, vice president of international marketing at the National Pork Board. "No longer can we just be concerned with commodity volume. We proved this in 2017 when the top markets for U.S. pork included Mexico, Japan and China/Hong Kong. And although exports were down overall to China last year, U.S. pork variety meat exports set an all-time export record surpassing $1 billion in total value." At the World Meat Congress, U.S. pork industry leaders and pig farmers will have the opportunity to personally connect with world leaders, gaining invaluable insights that will continue the record-breaking pork export trajectory. Through speakers and networking opportunities, attendees will build relationships to elevate the Pork Checkoff's international marketing efforts. The important contacts and conversations will aid in developing international marketing strategies designed to grow U.S. pork demand abroad. As part of its sponsorship, the Pork Checkoff is sponsoring the keynote address by award-winning author and Forbes contributor Jeff Fromm, an expert on emerging consumer trends. Fromm, who has authored several books on reaching young consumers, says that food has moved from a mere menu item to a form of self-expression. "Today's young consumers are passionate about food; it is a ‘badge' product," Fromm said. "We used to express ourselves through clothing, but now it is food culture driven by the young consumer who can often afford to buy anything they wish." With both millennial and Generation-Z consumers (born 1996 to 2010) using food to curate their identity, the rules of food production and promotion are changing, with a focus moving from transparency to proof of performance. "As an industry, food marketers must shift from ‘story telling' about a product into ‘story living,' or showing how the young consumer can integrate a product into their life," Fromm added. "For example, today's Gen Z consumer literally has an empty spice cabinet and they look to food merchandisers to fill that gap through innovative, seasoned product offerings. This delivers to the young consumer something they need and do not already have." The World Meat Congress continues through June 1, allowing time for producer leaders in attendance to exchange ideas and share strategies to face challenges and overcome barriers to international marketing. Insights, such as those shared by Fromm and other speakers, will generate conversations that will lead to critical relationship building. The conference provides a historic opportunity to gather critical insights and showcase the superiority of U.S. pork production to key international customers.

The National Pork Producers today called for a swift resolution of the United States-China trade dispute, paving the way for increased U.S. pork exports to the world's largest pork-consuming nation. According to Iowa State University Economist Dermot Hayes, U.S. pork producers have lost $2.2 billion on an annualized basis due to events leading up to and following China's 25 percent punitive tariffs in retaliation for U.S. tariffs on aluminum and steel. "U.S. pork has invested significantly to ramp production to capitalize on growth opportunities around the world, including China and other markets throughout the Asia-Pacific region," said Jim Heimerl, a Johnstown, Ohio pig farmer and president of the National Pork Producers Council. "We applaud the administration for making the expansion of agriculture exports a cornerstone of the discussions with China. We hope the next round of trade talks with China results in improved market access to a critical export market for U.S. pork and other farm products." "Since March 1, when speculation about Chinese retaliation against U.S. pork began, hog futures have dropped by $18 per animal, translating to a $2.2 billion loss on an annualized basis," said Iowa States Hayes. "While not all of this lost value can be attributed to trade friction with China, it is certainly the main factor." The market disruption caused by export market uncertainty comes at a time when U.S. pork is expanding production to record levels. Five new pork processing plants have recently opened or will soon begin operations, increasing U.S. pork production capacity by approximately 10 percent from 2015 levels by next year. Exports accounted for more than $53 of the average $149 value of a hog last year and support over 110,000 U.S. jobs. The United States has, on average, been the top global supplier of pork over the last ten years. "We produce the safest, highest-quality and most affordable pork in the world," Heimerl added. "We are dependent on exports and are one of the few sectors of the U.S. economy that can immediately reduce the trade imbalance with China, where pork represents approximately ten percent of the consumer price index. Eliminating punitive tariffs and improving access to China by eliminating or reducing tariffs on frozen and chilled pork would result in an explosion of pork exports, contributing significantly to U.S. economic growth and reduction of the trade deficit."

The Organic Trade Association says sales of organic meat, poultry and fish reached $1.2 billion in 2017, an increase of 17.2%, the first time the category has broken through the $1 billion sales mark. Overall, U.S. organic food sales totaled $45.2 billion in 2017, up 6.4%. That compares with an 8.4% increase in 2016 to $43 billion, the first year sales surpassed $40 billion, according to the Organic Trade Association. OTA reported that slow growth in the organic dairy and egg category affected the overall growth rate for organic food sales. However, OTA said organic food products now account for 5.5 percent of the food sold in retail channels in the U.S. OTA noted that slower growth in 2017 organic sales was not surprising, given that new channel and product expansions are becoming more incremental and various categories exhibit different trajectories of development as the organic market matures. "The organic food market will see a steadier pace of growth as it matures, but it will continue to surpass the growth rate of the broader food market," said Laura Batcha, OTA's CEO and executive director. "Demand for organic is flourishing as consumers seek out nutritious and clean food that is good for their health and for the environment. That demand is driving innovation, and there are now so many organic options that we can all eat organic for breakfast, lunch, dinner, snacks and everything in between." The association also noted that the withdrawal of a proposed rule to clarify livestock and poultry practices in March by USDA will likely continue to hinder organic egg sales versus increasing pasture-raised egg sales amid ongoing consumer confusion over humane animal welfare practices.

Members of the U.S. House of Representatives sent a letter to Virachai Plasai, ambassador of the Kingdom of Thailand to the United States, calling for the removal of restrictions on imports of U.S. farm products, including U.S. pork. The bipartisan letter signed by 44 members and sponsored by Representatives David Young, R-IA, and Ron Kind, D-WI calls for the suspension of U.S. trade benefits enjoyed by Thailand if it does not respond with reciprocal access. "It's time for Thailand to end its unwarranted ban on U.S. pork," said Jim Heimerl, a pork producer from Johnstown, Ohio and president of the National Pork Producers Council. "We thank Representatives Young and Kind for leading this call to action on behalf of American pork producers and other farmers." Last week, the Office of the U.S. Trade Representative (USTR) agreed with a request from the National Pork Producers Council to review Thailand's eligibility for the U.S. Generalized System of Preferences (GSP) program because of that country's failure to provide access to its market for U.S. products, including pork. NPPC is urging the Trump administration to withdraw or limit the benefits Thailand receives under the preferential trade program, which gives duty-free treatment to certain goods entering the United States. The program allows for removal of a country's benefits if it fails to provide the United States "equitable and reasonable access" to its market. According to the letter to Ambassador Plasai, "If significant progress is not made, we anticipate that the United States may soon consider whether it is appropriate to suspend some of Thailand's GSP benefits in order to ensure better compliance with the letter and spirit of the eligibility criteria."

Growing demand and limited real estate has Chinese pork producers looking to the skies for expanded production. More "high-rise hog hotels" are going up on Yaji Mountain in southern China, as the country rapidly modernizes their hog industry. Farm Journal’s PORK reported construction on the first of the seven-story farrowing buildings this past summer, but continued expansion includes four more buildings in progress nearly double that size. One building will have as many as 13 floors—the world's tallest building of its kind. Inside the Buildings "There are big advantages to a high-rise building," said Xu Jiajing, manager of Yangxiang's mountain-top farm, according to Reuters. "It saves energy and resources. The land area is not that much but you can raise a lot of pigs." It might save on land, but building upwards means higher cost and complex feeding, ventilation and manure management issues. Moving pigs by elevator adds another level of complexity to animal handling. It also raises health concerns because of the multiple disease challenges in the country. Farm manager Xu said Yangxiang reduces the risk of disease by managing each floor separately, with staff working on the same floor every day. New sows are introduced to a building on the top floor and are then moved by elevator to an assigned level where they remain. The ventilation system is designed to prevent air from circulating between floors, instead coming from the ground channels to ducts on each floor. A central exhaust is on the roof with extraction fans pulling air through filters. A waste treatment plant is still under construction to handle the site's manure. After treatment, the liquid will be sprayed on the surrounding forest and solids sold to farms as organic fertilizer. More Companies Building Up Despite Chinese hog prices at an eight-year low, companies like Yangxiang are putting more money (30% more) into the multi-level buildings than single-story modern farms due to the densely populated, land-scarce areas. Yangxiang will house 30,000 sows in this 11-hectare (27-acre) site by year-end, producing 840,000 piglets annually. The company has spent nearly 16,000 yuan ($2,524) per sow on the new farm, about 500 million yuan ($79 million), not including the cost of the pigs. Locating the farms on a mountain has challenges, but the site is close to Guigang, a city with a river port and waterway connections to the Pearl River Delta, one of the world's most densely populated regions. In Fujian province, Shenzhen Jinxinnong Technology Co Ltd also plans to invest 150 million yuan ($24 million) in two five-story sow farms in Nanping. Two other companies are building high-rise hog farms in Fujian as well, according to an equipment firm involved in the projects. Thai livestock-to-retail conglomerate CP Foods is also building four six-story pig units with local firm Zhejiang Huatong Meat Products Co in Yiwu, a Chinese city near the large populations around Shanghai. China's 10 largest pig farming firms accounted for only 5.8% of hogs sent to slaughter in 2016, but that was up by 2.8 percentage points on the previous year, said Zhang Guangan, director of the China Swine Industry Association.

Instead of seven to 10 long years of waiting for the next “big” jump in yield or agronomic improvement, precision gene editing technology could get it on farms in as few as three years. USDA is watching this technology, too, and has actually made it easier for breeders to bring products to market. USDA recently announced it does not regulate or have plans to regulate any plants that could have been developed through traditional breeding techniques as long as they are not plant pests or developed using plant pests. This includes new techniques such as genome editing because it speeds up traditional plant breeding for results indistinguishable from traditional breeding. "Plant breeding innovations hold enormous promise for helping protect crops against drought and diseases while increasing nutritional value and eliminating allergens," says Secretary Sonny Perdue. "With this approach, USDA seeks to allow innovation when there is no risk present." Keeping regulations away from this kind of breeding is good news for farmers. "This wise decision will encourage innovation, helping producers and consumers alike," says Daniel Kelley, northern Illinois farmer and blogger for the Global Farmer Network, "it even holds the potential to usher in the next great revolution of food." Multi-nationals such as Syngenta, Monsanto, BASF and Corteva Agriscience have taken notice and advantage of this new breeding system, but this isn't just a technology for the elite. "This technology is a game changer," says Oliver Peoples, CEO of Yield10 Biosscience, an agricultural bioscience company. "If you look at industry estimates it's more than $100 million and 12 or so years to create a GMO which is prohibitive to small companies." Note GMO technology created with this type of genetic engineering (which is not the same as gene editing) would still face government regulations it could just be completed faster and cheaper. Gene editing does what could be completed by natural breeding, much faster. For companies with smaller R&D budgets, new gene editing tools provide opportunity for innovation that wasn't previously available. "We're able to develop gene traits independent of these guys [multi-nationals or those with larger budgets] with the intention to eventually partner with seed companies," Peoples says. Farmers could soon see technology advance great leaps and bounds in yield and agronomic stability in what might once have been considered unorthodox ways. With more dozens upon dozens of companies researching the next "big thing" in row crop technology it's sure to bring about great opportunities and partnerships will help bring those advancements to the masses. "What I'll remember best about my career and the thing for which I'm most grateful is the stunning technological progress," Kelley says. "Today, we have hybrid seed corn that delivers bumper crops, computer databases that overflow with information and precision agriculture driven by satellites. "Compared to what I knew as a boy, these are incomprehensible, head-spinning technologies," he adds.

JBS USA has recalled approximately 35,464 lb. of raw ground beef following the finding of hard plastic in contaminated beef. The U.S. Department of Agriculture's (USDA) Food Safety and Inspection Service (FSIS) made the announcement on May 2 following the discovery. The ground beef was produced at the JBS USA case ready fresh meat processing facility in Lenoir, NC, on March 22. JBS was made aware of the problem following the complaint of a consumer who found pieces of hard, blue colored plastic in some ground beef. Products included in the recall were primarily Kroger branded products along with All Natural Laura's Lean Beef and some Angus branded products. The beef in the recall bears the establishment number "EST. 34176" inside the USDA mark of inspection. Beef was shipped from distribution centers in Virginia and Indiana. No other problems have been reported and there have been no confirmed reports of adverse reactions from eating the products. However, FSIS is concerned that possibly contaminated ground beef might have been frozen after purchase. If any products bear the following labels it should be thrown out or returned to the store it was purchased at: 3-lb. tray packages containing "Kroger GROUND BEEF 73% LEAN - 27% FAT" with product code 95051, UPC: 011110975645, and a Sell By date of 4/9/2018. 1-lb. tray packages containing "Kroger GROUND BEEF 80% LEAN - 20% FAT" with product code 95052, UPC: 011110969729, and a Sell By date of 4/9/2018. 3-lb. tray packages containing "Kroger GROUND BEEF 80% LEAN – 20% FAT" with product code 95053, UPC of 011110969705, and a Sell By date of 4/9/2018. 1-lb. tray packages containing "PRIVATE SELECTION ANGUS BEEF 80% LEAN - 20% FAT GROUND CHUCK" with product code 95054, UPC: 011110971395, and a Sell By date of 4/9/2018. 1-lb. tray packages containing "Kroger GROUND BEEF 85% LEAN – 15% FAT" with product code 95055, UPC: 011110969682, and a Sell By date of 4/9/2018. 1-lb. tray packages containing "Kroger GROUND SIRLOIN 90% LEAN – 10% FAT GROUND BEEF" and product code 95056, UPC: 011110975638, and a Sell By date of 4/9/2018. 1-lb. tray packages containing "ALL NATURAL LAURA'S LEAN BEEF 92% LEAN 8% FAT GROUND BEEF" with product code 95057, UPC: 612669316714, and a Sell By date of 4/9/2018. 1-lb. tray packages containing "ALL NATURAL LAURA'S LEAN BEEF 96% LEAN 4% FAT GROUND BEEF" with product code 95058, UPC: 612669317063, and a Sell By date of 4/9/2018. 1-lb. tray packages containing "PRIVATE SELECTION ANGUS BEEF 90% LEAN – 10% FAT GROUND SIRLOIN" with product code 95063, UPC: 011110969637 and a Sell By date of 4/9/2018. 1-lb. tray packages containing "Kroger GROUND BEEF 93% LEAN – 7% FAT" with product code 95064, UPC: 01111096920, and a Sell By date of 4/9/2018. 15-lb. cases containing "JBS Ground Beef Angus Chuck 80% Lean 20% Fat Service Case" with Case UPC: 0040404800632 and a "Sell By: 9.APRIL." 15-lb. cases containing "Ground Beef Angus Sirloin 90% Lean 10% Fat Service Case" Case UPC: 0040404800634, and a "Sell By: 9.APRIL." The recall is being categorized as a "Class II" recall by FSIS meaning it poses a health hazard with remote probability of adverse health consequences should the product be consumed.

An estimated 1,500 head of cattle have died following wildfires in Oklahoma that have burned for nearly two weeks, and that projection could increase. Reports from the Oklahoma Department of Agriculture earlier in the week projected that 1,100 cattle had died from the Rhea and 34 Complex wildfires that have burned in northwest Oklahoma since April 12. The first estimate was probably a little low, says Rod Hall, state veterinarian for Oklahoma, who helped put together the original projection. Hall believes at least 1,500 head of cattle died because of the fires after speaking with more ranchers in the area, and he thinks it could go up to 2,500 head. Hall visited Dewey and Woodward County with a task force to assess damage from the fires. This region of Oklahoma has seen fires the past two years with the Starbuck and Anderson Creek fires both starting in the northwest part of the state. Last year the Starbuck Fire was estimated to have killed more than 3,000 cattle in Oklahoma alone. It killed almost double that amount in Kansas. This year the losses shouldn't be as high. "These fires burned almost as much land as the one did last year (in Oklahoma), but this area that the fires were in this year has a little more wheat pasture," Hall says. Wheat pasture in the area has been exceptionally dry due to drought so many cattle were removed early in the grazing season. The Rhea and 34 Complex wildfires also started a month after the fires in previous years. The Oklahoma Forestry Services' latest fire situation report indicates that both fires are nearly put out after burning almost 350,000 acres combined: 34 Complex in Woodward County has burned 62,481 acres and is at 98% containment Rhea Fire in Dewey County has burned 286,742 acres and is at 87% containment Wildfire containment has been aided by much needed rainfall in the area from April 20-21. The moisture was equal or more than what the region had seen in the past six months. More rain is expected Tuesday night through Wednesday.

The United States Department of Agriculture's (USDA) Animal and Plant Health Inspection Service (APHIS) is proposing to update its branding requirements for cattle entering the United States from Mexico. The changes would simplify the branding requirements, making the brands easier to apply and read, reducing errors. They would ensure Mexican cattle are easily identifiable and traceable for the remainder of their lives in the event of a disease detection. The Mexican government requested changes to address issues with the current branding requirements, including confusion between the Mx and MX brands used for spayed heifers and breeding cattle respectively; the small size of the brands, which can cause blotching and require rebranding; and the rejection of animals at ports entry based on questions about whether they were branded correctly. The proposed rule addresses these concerns by requiring an M brand for all cattle. The brand would also be larger in size for better readability. Together, these steps will reduce branding errors. To make it easy to distinguish between feeder and breeding cattle, brands for breeding animals would be placed on the shoulder. Feeder cattle would continue to be branded on the back hip. The proposed rule would still allow an MX ear tattoo option for breeding cattle, instead of a brand, because the tattoos have not posed a readability problem and are a permanent form of identification. Cattle imported from Mexico would still require an approved eartag for traceability purposes. USDA is already allowing Mexico to use the M brand on spayed heifers and breeding cattle as an alternate to the Mx and MX brands. This has reduced errors and confusion at border ports. The change is proving to be beneficial for both countries. USDA will accept comments on this proposed rule for 60 days following publication in the Federal Register.

February exports of U.S. pork, beef and lamb were higher than a year ago in both volume and value, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Pork exports totaled 205,466 metric tons (mt) in February, up 4 percent from last year's large total, while export value increased 12 percent to $547.2 million. Through February, pork exports were 2 percent ahead of last year's pace at 408,934 mt, while export value climbed 10 percent to $1.09 billion. February exports accounted for 27.8 percent of total pork production and 24 percent for muscle cuts only - up from 27.6 percent and 22.9 percent, respectively, a year ago. Through February, the percentage of total pork production exported was slightly lower year-over-year at 26.1 percent, while the percentage of muscle cuts exported edged higher to 22.7 percent. February export value averaged $56.78 per head slaughtered, up 9 percent from a year ago. Through February, per-head export value was $53.70, up 5 percent. February beef export volume improved 11 percent from a year ago to 100,593 mt, while export value increased 18 percent to $599.8 million. Although this was the lowest monthly value total since May 2017, it is the highest on record for the month of February. January-February volume was 206,079 mt, up 10 percent from the first two months of 2017, while export value was 20 percent above last year's pace at $1.22 billion. Exports accounted for 13.6 percent of total beef production in February, up one full percentage point from a year ago. For muscle cuts only, the percentage exported was 10.8 percent (up from 10.1 percent last year). Through February, beef exports accounted for 13 percent of total production (up from 12.4 percent) and 10.4 percent for muscle cuts (up from 9.8 percent). February beef export value averaged $322.29 per head of fed slaughter, up 16 percent from a year ago. Through February, per-head export value averaged $306.69, up 15 percent. "Red meat exports are off to a strong start in 2018 and continue to deliver excellent returns for U.S. producers," noted USMEF President and CEO Dan Halstrom. "The outstanding level of export value per head slaughtered is especially encouraging at a time in which U.S. meat production is high and the trade climate is somewhat volatile. Through all the uncertainty, international customers remain very committed to U.S. pork and beef. This reinforces the importance of having experienced USMEF staff members located in key markets, working every day to maintain customer loyalty and reinforce the United States' reputation as a reliable supplier." Pork exports steady to Mexico; solid growth in Korea, Japan and Latin America February pork exports to leading volume market Mexico were steady with last year at 64,523 mt, while export value was slightly higher at $117.5 million. Through February, export volume was steady with last year's record pace at 137,520 mt, while export value increased 3 percent to $251 million. In Japan, the leading value destination for U.S. pork, February volume was steady year-over-year at 32,418 mt, while value was up 3 percent to $134.7 million. Through February, export volume to Japan increased 6 percent from a year ago to 67,466 mt and value climbed 10 percent to $281.1 million. This included a 7 percent increase in chilled pork exports to 36,929 mt, valued at $176.9 million (up 11 percent). Pork exports to South Korea climbed 33 percent in volume (40,710 mt) and 43 percent in value ($119 million). Most U.S. pork products now enter the Korean market duty free under the Korea-U.S. Free Trade Agreement (KORUS), and high-quality, affordable U.S. pork is helping to underpin Korea's record-breaking pork consumption. USMEF continues to help position U.S. pork in new and exciting ways in Korea, including the addition of pulled pork to many restaurant menus, a selection of high-end sausages at convenience stores and a wide array of home meal replacement and snack items sold at retail and through e-commerce. Through the first two months of 2018, other highlights for U.S. pork include: Led by strong growth in Colombia and Peru, pork exports to South America were 9 percent ahead of last year's pace in volume (17,855 mt) and 14 percent higher in value ($43.1 million), with consumption growth in the region continuing to outpace domestic production. Solid growth in Honduras, a doubling of exports to El Salvador and a steady performance in Guatemala pushed pork export volume to Central America 16 percent above last year's pace at 12,255 mt, while value climbed 20 percent to $28.9 million. Exports also increased year-over-year to Nicaragua, Panama and Belize. Exports to the Philippines, the mainstay destination for U.S. pork in the ASEAN and the region's largest import market, increased 3 percent in volume (4,746 mt) and remained steady with last year's pace in value ($10.8 million). Exceptional growth in Vietnam (901 mt valued at $3.7 million, up 272 percent and 469 percent, respectively) pushed exports to the ASEAN region 18 percent higher in volume (6,178 mt) and 29 percent higher in value ($16.9 million). Exports also increased year-over-year to Singapore, Indonesia and Malaysia. In China/Hong Kong, pork export volume fell 14 percent year-over-year to 69,515 mt, but value increased 3 percent to $164 million. Muscle cut exports increased 7 percent to 28,775 mt, while variety meat exports declined 24 percent in volume (40,740 mt) but with sharply higher prices value only dipped 2 percent to $107.4 million. The Chinese government recently imposed a 25 percent tariff on imports of U.S. pork and pork variety meat, in addition to the 12 percent tariff already in effect in China. The higher tariff rate is not reflected in the January-February results, as it took effect April 2. But the additional tariff will put U.S. pork at a significant disadvantage compared to China's other major suppliers: the European Union, Canada, Brazil and Chile. China's total import demand has also slowed with its rebound in domestic production and a significant decrease in domestic hog prices. Chilled beef shipments to Japan, Korea and Taiwan drive export growth; Mexico and Hong Kong also trend higher Beef export volume to leading market Japan declined in February (20,314 mt, -15 percent year-over-year), as the frozen beef safeguard tariff (50 percent, up temporarily from 38.5 percent) contributed to a slowdown in frozen shipments. However, February export value to Japan was down only slightly at $133.4 million. Through February, total exports to Japan were 4 percent below last year's volume pace at 44,282 mt, but still increased 9 percent in value to $282 million. This included an 18 percent increase in chilled beef exports to 22,809 mt, valued at $175 million (up 29 percent). Japan's safeguard tariff on imports of frozen beef from the United States (and from other suppliers that do not have a free trade agreement with Japan) expired March 31, so the tariff rate for both frozen and chilled imports from the U.S. is now 38.5 percent. Japan's tariffs on imports of Australian chilled and frozen beef edged slightly lower on April 1 and now stand at 29.3 percent and 26.9 percent, respectively, under the Japan-Australia Economic Partnership Agreement. Beef exports to South Korea maintained a torrid pace in February, increasing 24 percent from a year ago in volume (16,193 mt) and 31 percent in value ($112.4 million). Through February, exports to Korea climbed 18 percent in volume to 33,326 mt and were 32 percent above last year's record value pace at $234.8 million. This included chilled beef exports of 7,231 mt (up 34 percent year-over-year) valued at $68 million (up 44 percent). U.S. beef is driving new consumption trends in Korea, where retailers and foodservice operators have intensified their focus on steak cuts and are highlighting features such as dry and wet aging. USMEF continues to educate the Korean meat trade and consumers about the quality and convenience of U.S. steaks in this increasingly protein-centric market. Through the first two months of 2018, other highlights for U.S. beef include: Exports to Mexico, which is a critical destination for beef rounds, shoulder clods and variety meat, were 10 percent above last year's pace in volume (39,987 mt) and 19 percent higher in value ($175 million). This included an 11 percent increase in variety meat export volume (18,720 mt) and an impressive 36 percent jump in variety meat value ($44.4 million). Partly driven by demand for the Chinese New Year holiday, exports to Hong Kong jumped 41 percent in volume (22,807 mt) from a year ago and 61 percent in value ($168.6 million). Exports to China, which resumed in June 2017, totaled 1,187 mt valued at $11.1 million. In Taiwan, an outstanding destination for chilled U.S. beef, exports increased 25 percent from a year ago in volume (8,106 mt) and 42 percent in value ($78.2 million). Chilled exports to Taiwan were up 53 percent in volume (3,800 mt) and 61 percent in value ($48 million) as the U.S. holds 72 percent of Taiwan's chilled beef market. Exceptional growth in Chile and Colombia pushed exports to South America up 68 percent year-over-year in volume (5,296 mt) and 62 percent in value ($25.2 million). Exports to Brazil, which resumed in April of last year, totaled 215 mt valued at $2 million. Strong performances in Indonesia and Vietnam pushed beef exports to the ASEAN region 42 percent ahead of last year's pace in volume (6,794 mt) and 34 percent higher in value ($36.7 million). The region is especially strong for beef variety meat, with exports up 74 percent in volume (2,008 mt) and 93 percent in value ($4.4 million). Strong growth in Angola and steady volumes to South Africa pushed beef exports to Africa up 26 percent year-over-year in volume (1,981 mt) and 77 percent higher in value ($3.1 million).