January 10, 2011

 

Canadian pork exports grow 4% on-year

 

 

Canada has shipped an almost record volume of pork in 2010, especially to the US, Russia and Mexico, shipping about 913,000 tonnes of through October, according to Statistics Canada.

 

But an industry official said shrinking herds will make that feat tough to match this year.

 

Beef exports may have tallied up the largest volume in eight years in 2010 and could have even bigger upside this year once China resumes beef trade with Canada.

 

"The industry has focused on export markets over the years because the packer will always look at where he can get the best return," said Jacques Pomerleau, executive director of marketing agency Canada Pork International.

 

Farmers have cut their hog herds to the smallest size in 13 years after years of losses due to high currency and feed costs. Even so, Canadian slaughter rates are stable because fewer live hogs are going to the US due to its restrictive country-of-origin labelling law, Pomerleau said.

 

The US bought about 5% more pork through October, roughly 281,000 tonnes in total, as its packers looked for supplies with US herds shrinking, Pomerleau said.

 

A trucking dispute that led to Mexico slapping a tariff last year on US pork allowed Canada to ship nearly 75% more pork to Mexico, or about 58,000 tonnes in total.

 

Russia bought 42% more Canadian pork, or 74,000 tonnes through October.

 

Canada is the third-biggest shipper of pork and beef.

 

Canada shipped nearly 350,000 tonnes of beef and veal through October, according to government data, but that figure may be conservative, said Herb McLane, acting vice-president of international programmes at Canada Beef Export Federation.

 

When final numbers are in, Canada may have shipped its biggest volume since 2002, the year before a finding of mad cow disease triggered a series of market closures, McLane said.

 

A near doubling of volume to Japan – the biggest in nine years – led the way, helped by that country's strong currency and focused efforts by the Canadian industry, CBEF said.

 

Japan, the world's third-largest beef importer, bought 13,277 tonnes through November, CBEF said.

 

Canada also benefited from improving global economic conditions that stimulated appetites for beef, said John Masswohl, director of government and international relations for the Canadian Cattlemen's Association.

 

"People aren't going to high-end restaurants if they're worried about their jobs," he said.

 

China, which said last summer it would allow some access for Canadian beef, represents bigger upside in 2011.