February 20, 2006

Canadian pork exports reach record C$2.8 billion in 2005

Canadian pork exports hit a record in 2005, however exports are expected to slow down in 2006, said Canada Pork International on Feb 17.

Some 1.029 million tonnes or C$2.84 billion worth of pork exports were delivered by the industry in 2005. This was an 11-percent increase from the 931,000 tonnes (C$2.65 billion worth) achieved the previous year.

Shipments to the US, Canada's largest market, have declined in the past two years, said Jacques Pomerleau, spokesman for Canada Pork International. However, exports to Japan and Australia, Canada's second and third largest markets were expected to remain stable in 2006.

Pomerleau said exports to the US could continue to decrease due to the surplus of animal protein in the US. In addition, the strong Canadian dollar relative to the US dollar could make exports decline further, he said.

The 2005 increase in exports were due to higher hog production in Canada and the spillover effect from mad cow disease. As many countries impose restrictions on Canadian beef in 2003 because of the country's reported mad cow disease cases, pork exports gathered pace.

Pomerleau foresees that South Korea will continue to increase Canadian pork imports because of competitive pricing.

Increasing by 80 percent to 60,000 tonnes compared with the previous year, shipments to South Korea were worth C$100 million in 2005, said Canada Pork International.

Exports to China, Mexico and Romania were worth more than C$50 million each while shipments to Russia, Taiwan, New Zealand, Cuba and the Philippines exceeded C$10 million each.