February 18, 2008

 

Outlook for US pork exports strong in 2008
 

 

US pork exports, already on its 16th record setting year, may hit another new high this year due to the dollar, which remains weak and record production which drive down prices, according to a press release by the US Meat Export Federation US Meat Export Federation (USMEF).

 

China/Hong Kong was the largest growth market for US pork last year, nearly doubling (up 91 percent) to 169,160 tonnes worth US$271 million.

 

Japan, Mexico and Hong Kong/China and Canada, account for nearly three-quarters of US pork exports last year, according to the USMEF.

 

The value of total pork exports last year hit nearly US$3.15 billion, which was up 10 percent from 2006 while volumes rose 3.4 percent to 1.3 million tonnes.

 

Volumes sold in 2007 were nearly triple that ten years ago, while value shipped has more than doubled in the past five years.

 

Russia, Australia, the Asean region, and France were also rapidly-growing markets for US pork.

 

Sales to Mexico, Eastern Europe and the Middle East were down from the previous year.

 

Exports helped averted disaster in the US hog markets by moving record pork production volumes out of the country.

 

Even as current spot market hog prices are currently well below producers' break-even levels, analysts have said the situation would have been much worse for producers without the export sales growth.

 

US pork slaughter for 2008 is expected to be up 3 percent from estimated 2007 levels, according to Glenn Grimes, agricultural economist at the University of Missouri.

 

Mid-February weekly hog slaughters are already averaging 12.5 percent above a year ago while the year-to-date slaughter, , is up about 10.0 percent, compared with the same period a year ago.

 

However, the situation may not last as high feed costs and slim profits are expected to trim production, resulting in fewer hogs for 2009 or even the second half of the year.