April 14, 2008

US pork exports boosted by weak dollar

The weak US dollar has become a boon for pork producers as it has significantly boosted US pork exports, according to US trade data and industry sources.

About 390.6 million pounds of pork were exported in February, up 10.5 percent from January and up 57 percent from February 2007, according to USDA data.

The increase in exports has helped to mitigate the losses of US pork producers, who are losing money due to high feed and fuel costs.

Top destinations for US pork in February include Japan, China, Hong Kong, Mexico, Russia, Canada, and South Korea.

Pork production is up 12 percent from last year, and the excess supplies are pressurizing prices, which make the situation worse for producers who could not find a way to cover their rising production costs.

"Without pork exports and at these production rates the US market would have to absorb the equivalent of an additional 60,000 hogs per day, which would drive prices down significantly," said Erin Daley, manager of research of analysis at the US Meat Export Federation.