March 10, 2014

Bright outlook for US pork exports in 2014

Although down from the record level set in 2012, US pork exports remained strong last year, exceeding US$6 billion for the third consecutive year.

As 2013 drew to a close, 4.73 billion pounds of pork and pork variety meats valued at US$6.05 billion dollars had been exported, down 5% and 4%, respectively, from 2012.

"Checkoff investments in helping tear down trade barriers and promote US pork with international consumers are crucial to growing the revenue we enjoy from exports," said Brian Zimmerman, chair of the Pork Checkoff's Trade Committee and a Beatrice, Nebraska, producer. "In 2013, 26% of US pork and pork variety meat was exported, which added nearly US$54 per hog marketed."

US pork exports ended 2013 on a positive note with strong exports in December, demonstrating upward momentum going into 2014. Mexico, Central and South America and the ASEAN region posted particularly strong results to bring the month's totals up slightly from levels of a year ago. In addition, through December total exports to South Korea, Australia and New Zealand were the highest of the year.

Current negotiations for two additional free trade agreements - the Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership - could positively impact US pork exports. The Trans-Pacific Partnership could open and expand markets in the Asia Pacific region, with high potential to increase exports to Japan, Vietnam and Australia. The Transatlantic Trade and Investment Partnership, a trade agreement with the EU, could also greatly increase US pork sales.

During 2013, the top five markets of US pork exports in total pounds of pork exported were: Mexico (1.4 billion pounds), Japan (937 million pounds), China and Hong Kong (920 million pounds), Canada (501 million pounds), and Central and South America (268 million pounds).

While the top five markets in total dollar value exported were: Japan (US$1.885 billion), Mexico (US$1.22 billion), China and Hong Kong (US$903 million), Canada (US$844 million), and Central and South America (US$306 million).

Meanwhile, domestic demand also grew by 5.6% in 2013. According to calculations from Pork Checkoff economist Steve Meyer, domestic real per capita expenditures increased nearly every month in 2013. Consumer education about the value and versatility of pork, the adoption of new pork cut names, and reinforcement of pork's ideal cooking temperature were the Pork Checkoff's key consumer messages. The new porterhouse pork chop, rib eye pork chop and New York pork chop were specifically featured in a summer marketing campaign.