March 10, 2008

US pork export growth in 22 years up 89 percent
 

US pork exports in 2007 is at 1.4 million tonnes, up 89 percent from 39,000 tonnes in 1986, according to data analysis by the Pork Checkoff and University of Missouri.

Value of pork and pork byproduct exports is US$28.91 per slaughtered hog in 2007, up 67 percent from US$1.97 in 1986.

As a result of these rate changes, the pork industry is growing an additional 0.8 percent per year for the past 22 years.

The US pork industry has now 18 million more hogs than in 1986, and the increase in pork quantity had allowed the industry to grow without lowering prices, which led to an income increase for producers when net exports grew, according to Glenn Grimes, an economic consultant for the Pork Checkoff.

However, Grimes said the estimates shows price increase only in the year when net exports grew.

"We assumed producers reacted to higher prices by increasing the US herd enough to offset any price benefits from net export growth in the following years," said Grimes.

Grimes said they believe that the total income of all US pork producers has increased by US$7.4 billion in the last 22 years.