US pork exports to rise 4% as Russia revokes ban

 

 

US pork exports could rise 3-4% from last year as problems with exporting pork to leading customers like Russia and China draw to a close and world economies improve.

 

The US has been entangled in disputes with Russia and China over meat sales in recent months. Jim Peterson, chairman of the US Meat Export Federation, said problems such as certification of exports were close to being resolved with the two countries.

 

In fact, the USDA on Friday (Mar 5) said it will likely begin approving US pork production facilities for export to Russia this week now that a deal has been reached with the country to end its ban.

 

On February 22, the USDA posted new rules for pork producers seeking to ship product to Russia. Those rules, part of a new export verification programme, require producers to prove their pork is free of antibiotics that Russia has prohibited.

 

Russia buys 6% of all US pork exports in 2009, worth US$257 million, according to the USDA. Shipments to Russia are expected to begin soon, as several pork processing plants have already submitted export approval applications.

 

Nick Giordano, vice president and counsel for international affairs with the National Pork Producers Council, predicts the US 2010 pork quota of about 50,000 tonnes to Russia will be filled and that additional pork may be shipped as well at a 75% tariff rate.

 

Peterson said certification problems that have delayed the full resumption of exports to China should also be resolved soon after it cut off exports due to H1N1 flu concerns. In December China said exports could resume, but problems with certification have delayed the restart of exports.

 

Pork exports may not return to the record highs seen in 2008, but expectations are that the industry will recoup a large part of nearly 9% decline recorded in 2009. But the amount of growth will depend on world economies. Improving economies and a growing world population are seen to drive pork exports as long as there are no restrictions.

 

The Asian markets are the strongest economies in the world, and 85% of the world's population lives outside of the US and that represents a real growth market for US pork exports; one out of about four pigs will be exported, according to Peterson.