August 18, 2010

US pork exports to Japan outpace in Q2 after slump

US pork exports to Japan performed much better in the second quarter after an early-2010 slump, according to the US Meat Export Federation (USMEF).

April and May were both solidly in the "plus" column, and June exports to Japan set a new monthly record of 101 million pounds valued at nearly US$163 million.

Joel Haggard, USMEF senior vice president for the Asia Pacific region, discussed the business climate for US pork in Japan, noting that this market offers excellent opportunities for a growing variety of high-value, chilled pork cuts that deliver a strong return for US producers.

Haggard also explained that while Japan's currency has been extremely strong against the US dollar, this is really not an advantage when it comes to pork exports. This is because of Japan's minimum import price (farmgate price) policy on imported pork.

For the first half of 2010, total US pork exports reached US$2.35 billion, nearly 10% higher than the first six months of 2009, according to reports. The pace is slightly higher than the value reached in the first half of 2008, when pork export value set an all-time record, USDA data showed.

US pork exports made strong value gains in Mexico (up 31% to US$482.5 million), Canada (23% to US$298 million), Central America (up 45% to US$43.7 million), South America (up 55% to US$21.3 million), the Philippines (up 100% to US$62 million), and Australia (up 38% to US$68 million).

On a per-head basis, pork export value during the first six months of 2010 rose to US$44, about US$5 more than in the same period in 2009.