July 16, 2012

 

US pork exports on continual rise for May

 

 

US pork exports have rose 3% in volume (186,809 tonnes) for May from a year ago, and 9% more in value (US$524.3 million).

 

Through the first five months of the year, pork exports exceeded last year's record pace by 6% in volume (968,485 tonnes) and 15% in value (US$2.7 billion).

 

With the exceptions of South Korea, Taiwan and the Philippines, US pork export value is trending upward to every major destination. Exports to Korea were extremely high in 2011, due in part to a foot-and-mouth disease-related shortage of domestic pork and temporary duty-free access for a large volume of imports. US exports to Korea through May stood at 77,790 tonnes valued at US$222.8 million, down 32% in volume and 19% in value from last year’s record pace, but still far exceeding exports in the first five months of any previous year.

 

Mexico continues to perform well as the leading volume destination for US pork, and ranks number two in value. While May exports to Mexico were about even with last year, exports through the first five months of the year were 15% higher in volume (254,059 tonnes) and 13% higher in value (US$463.6 million). USMEF recently launched a campaign to build overall demand in Mexico by enhancing the image of pork and broadening its appeal among Mexican consumers.

 

"USMEF has reached agreements with several major supermarket chains in Mexico - totalling more than 500 outlets - to help USMEF promote pork through advertising and point-of-sale materials and to collect important sales data for evaluating the effectiveness of the campaign," explained USMEF President and CEO, Philip Seng. "Per capita pork consumption in Mexico is only about 25 pounds per year, compared to 47 pounds in the US. So we feel there is still great potential for expansion of overall demand, with the US industry positioned to be the primary beneficiary."

 

Japan remains the leading value destination for US pork, with exports through May reaching US$869.1 million. This is 10% above last year's record pace, despite a 5% decline in volume (199,061 tonnes).

 

Despite an upswing in domestic pork supplies and a softening of the hog market in China, exports to the China/Hong Kong region were up 34% in volume (192,926 tonnes) and 83% in value (US$389.2 million).

 

Exports to Canada were up 14% in volume (91,424 tonnes) and 19% in value (US$328.7 million).

 

In the first year under a new quota system, exports to Russia are off to an excellent start - 35% higher in both volume (39,132 tonnes) and value (US$115 million).

 

In the Central and South America region, where US pork and beef are currently on display at the USMEF Latin American Product Showcase in Bogota, Colombia, pork exports were up 13% in volume (33,266 tonnes) and 16% in value (US$85 million). This expansion was led by growth in Colombia, where exports were up 62% in volume (5,596 tonnes) and more than doubled in value (US$15.9 million).

 

The controversy over beta agonists continues to create a difficult business climate in Taiwan, where pork exports were down 45% in volume (8,108 tonnes) and 29% in value (US$18.2 million). Larger domestic supplies have also impacted this market, as Taiwan's pork imports from all sources are down nearly 40% this year.