May 14, 2009
US pork export markets improving; China a wildcard
The US pork export market is improving in the wake of the AH1N1 flu outbreak, and US retailers are "rotating" back to the meat, the top executive at Smithfield Foods Inc. said Wednesday (May 13).
Larry Pope, president and CEO of the largest US pork processor, said the return of demand from mainland China remained the "wild card," but other markets were improving.
The outbreak of the AH1N1 virus led to some restrictions on pork imports, though Pope reiterated that "there is no scientific evidence that this came from any pig."
"This thing's been way overblown," said Pope at an investor conference.
He said demand from Mexico - seen as the source of the outbreak - was returning quickly, while Japan, South Korea and Russia were all improving.
Smithfield is restructuring its pork business and, helped by lower feed costs, expects to improve its year-end liquidity to US$1.1 billion from a previous forecast of US$1 billion.
In recent trading, its shares were down 3.8 percent at US$11.55.
