May 15, 2012

 

 

US pork exports conclude the first quarter at a higher volume of 8% (598,058 metric tonnes) and a 20% rise in value (US$1.66 billion) than 2011's record pace, according to the USDA.

 

At the same time, the value of beef exports for the quarter rose 4% (to US$1.25 billion) on 10% lower volumes (266,388 metric tonnes).

 

March pork export volume of 198,972 metric tonnes was 8% lower than a year ago, but up 6% from February 2012. Export value of US$570.5 million was 3% higher than last year and up 8% from the previous month. These results were led by excellent growth in the China/Hong Kong region and by strong performance in Mexico, Japan and Canada.

 

Beef export volume in March of 89,803 metric tonnes was 23% lower than last year but up 3% from February. March export value of US$438.5 million was down 8% over-year but was 7% higher than the previous month.

 

"A 20% increase in pork export value for the first quarter is extraordinary, especially considering the record performance of last year," said USMEF President and CEO, Philip Seng. "On the beef side, market access issues and price sensitivity are making volume growth difficult in some markets, but we are pleased to see export value remaining above last year's record pace, even on smaller volumes."

 

March pork export value was particularly strong on a per-head-slaughtered basis, reaching US$59.92. This was nearly US$4 higher than a year ago and set a new monthly record, surpassing the previous high of US$59.53 set in November 2011. Exports equated to 27.8% of total U.S. production of muscle cuts plus variety meat, and 24% when including muscle cuts only.

 

Mexico remains the leading market for US pork on a volume basis, with first quarter exports up 17% in both volume (162,721 metric tonnes) and value (US$299.7 million). Exports to Japan, which nearly reached the US$2 billion mark in 2011, were up just 1% in volume (122,899 metric tonnes) but also achieved a 17% increase in value to US$530.6 million. Exports to the China Hong/Kong region, which came on very strong in the second half of 2011, were 30% higher in volume in the first quarter (115,642 metric tonnes) and surged 82% in value to US$234.9 million.

 

Exports to Canada were up 26% in volume (55,916 metric tonnes) and were one-third higher in value at just under US$200 million.

 

In Russia, where US pork now has better potential for expansion under a global tariff rate quota, exports were up 20% in volume (15,510 metric tonnes) and 36% in value (US$47.9 million).

 

Led by a strong performance in Colombia, exports to the Central and South America region expanded 9% in volume (20,603 metric tonnes) and 16% in value (US$53.5 million).

 

In South Korea, pork exports surged in the early months of 2011 because of culling of the domestic swine herd (due to foot-and-mouth disease) and a temporary duty-free tariff rate quota for some cuts of imported pork. Consequently, year-over-year exports to Korea were lower in the first quarter of 2012 - down 27% in volume (53,590 metric tonnes) and 12% in value (US$154 million). It is important to note, however, that these totals were still more than double the volume and triple the value recorded in the first quarter of 2010.

 

"While domestic supplies are recovering in Korea, we are still creating new opportunities for U.S. pork." Seng said. "The lower tariffs made possible by the Korea-U.S. FTA will enhance the competitiveness of U.S. pork in terms of price, and help us further expand the presence of chilled pork and value-added pork products in the retail and foodservice sectors. These marketing strategies have proven very effective in Japan, and I believe we can have similar success across north Asia."