US June total pork exports down 31 percent from yearago; beef up 14 percent

 

 

Total pork exports, including pork variety meats, in June were down nearly 31 percent by volume and 29 percent in value from a year ago, while the beef sector fared a bit better with a dip of about 14 percent in volume and 16 percent in value.

 

The June export data are from the US Meat Export Federation's web site and compiled from the US Department of Agriculture's latest monthly sales reports.

 

Pork sales internationally were better in the first quarter than had been expected but faltered in the second quarter, especially May and June, after the discovery of the novel AH1N1 influenza. Commonly referred to as swine flu, the influenza outbreaks raised concerns among consumers about the safety of eating pork, and demand worldwide slowed initially.

 

World health officials have repeatedly stated that eating properly handled and prepared pork is safe. Demand for pork has recovered, but in some countries hardest hit by the deadly influenza it is not yet back up to the levels seen before the disease was discovered.

 

Erin Daley, USMEF economist, in a release said pork exports were also negatively affected by trade suspensions related to the AH1N1 influenza. Some countries including China and Russia imposed partial or full import bans on US pork.

 

Sales of pork variety meats, such as livers and kidneys, in June were closer to year-ago levels and helped offset the steeper declines in shipments of pork muscle meats. Pork muscle meat shipments for June were off 33.3 percent, while variety meat sales were down 20 percent.

 

USMEF's tables show total pork shipments to China/Hong Kong in June were only about 26 percent of a year ago. Sales to Russia were at 59 percent of the same period in 2008, and the ASEAN region countries bought only half as much as they did a year ago.

 

Some analysts said since exports in 2008 were up so sharply from 2007, with an increase of 57 percent, last year's total was "off the chart" compared with the historical trends. Therefore, using the average of the latest years would better serve the industry for setting a target for 2009 sales, they said.

 

Dave Bauer, analyst with Brite Futures Inc in Cedarburg, Wisconsin, said total pork sales internationally for the first half of this year, while down from a year ago, were still above the average of the latest three years.

 

USMEF showed the 2009 January-June total pork volume at 925,339 tonnes, which was up 22 percent from the 2005-2008 average for the same period and second only to last year.

 

"Overall, I think we have had a pretty good showing relative to the three-year figure," Bauer said. Domestic demand has held up well according to retailers and agricultural economists, he said, so there is reason to be optimistic about export sales going forward.

 

International sales of beef muscle meat cuts in June were slightly above a year ago, up 2.6 percent, but the value dipped by about 4.5 percent from 2008. Year-to-date volume was up 4 percent.

 

A decline in variety meat sales pulled the total beef figure down for the month and year-to-date. June's total beef volume was off 13.5 percent, putting the first-half figure at minus 2 percent.

 

Year-to-date tonnage to Mexico, the leading customer by volume, was down 22 percent and to number two Canada was off 10 percent. Growth in sales to South Korea helped offset the declines to Mexico and Canada.