February 2, 2007

Iowa pork exports outlook going strong
 

Iowa producers have been doing more than their share when it comes to the export industry, said Phil Seng, president and CEO of the US Meat Export Federation pointing towards positive pork exports scenario.

Iowa, the no. 1 pork-producing state in the country, exports about 14 percent of its pork production every day, he said during the annual meeting of the Iowa Pork Producers Association.

With a huge quality of meat being produced annually, the US consumers could be nearing a saturation point. Therefore, it is important to maintain export markets, noted Seng.

The ability of the US industry to offer diversified products to customers has earned it a name in pork exports, with prominent buyers being Mexico, South Korea, Japan, China, central Europe and Russia.

Without a strong export market, Seng said, pork producers would not have been as profitable as they have been over the past three years.

In 2005, the export market equated to an additional US$25 per market hog, adding US$750 million alone to the Iowa hog industry based on yearly slaughter.

He said the US beef industry was also gradually recovering from the BSE scare and would be able to reach pre-BSE levels by 2009.

The meat export industry, according to him was entering "the brand era" where consumers fell into five categories: brand rejection, non-recognition, recognition, preference and loyalty.

Besides, the US has been working on developing store brands, geographic brands, natural brands and private brands.