January 4, 2008

More exports may rev up US meat industry

More meat purchases overseas can intensify growth for the US meat industry, according to a report outlook for the North American food industry published by Rabobank.

The report states that "beef, pork and poultry producers in the US are becoming increasingly reliant on overseas markets but the benefits of export growth far outweigh the risks."

Rabobank pointed China as a key market for US meat sector, particularly for pork.

Argentina and Brazil have already inked pork supply agreement with China as the country's domestic producers are unable to meet the burgeoning demand for pig meat.

Fiona Boal, part of the team that drew up the Rabobank report, conceded that the export performance of US meat processors would be affected by factors outside their control, including the movement of the US dollar and trade reform.