Canadian pork exports seen to decline

 

 

The amount of pork products exported from Canada is expected to decline come calendar year 2011, according to an official with the Canadian Pork Council (CPC).

 

"We've had about four or five shocks to our industry in the last five years, that includes the high Canadian dollar, for a while high feed prices due to biofuels competition for grain, we had AH1N1, as well as the world wide recession," said CPC executive director Martin Rice.

 

Rice said the Canadian pork industry has seen approximately one quarter of its domestic production disappear since 2005. However, he estimated 2010 year-end pork product exports will be slightly higher than 2009 at 1.1 million tonnes versus 1.09 million. However, he also predicted that in 2011 that number will be around 1 million tonnes.

 

The US is Canada's biggest export destination for pork products in terms of volume; while Japan is Canada's largest export destination in terms of value. In 2009, Canada exported 336,000 tonnes to the US, worth approximately CA$852 million (US$820.23 million); while exporting 228,000 tonnes to Japan, worth approximately CA$872 million (US$839.36 million).

 

Japan purchases cuts, such as loins and tender loins, that are de-boned and trimmed, making them have a higher value per kilo.

 

Canadian pork products are also exported to other markets such as Korea; their top valued cut is bellies which is used to produce bacon; Mexico; an important market for hams; Australia; purchasing the middle, the back and belly together; China, and Taiwan; a large market for organ meat such as hearts and livers; said Rice.

 

Mike de la Montche, project officer with Canada Pork International, said there are lots of factors that can affect shipment numbers, moving the volumes up or down, such as disease in other countries, currency exchange rates, as well as the quality and the price.

 

Despite all the different markets, Rice still expects the overall hog production in Canada will decrease, causing a ripple effect into less supply for export.