October 6, 2004

US Pork Exports Fill Void Left By Beef Ban

US pork exports have proven to be a pillar of support for the farm economy, helping to offset the void that followed the BSE-related ban on U.S. beef products last December.

US pork and pork variety meat volume for the year through July is up nearly 30 percent from a year ago, according to a tally from USDA's Foreign Agricultural Service.

Japan, No. 1 pork customer of the US, increased pork imports by 5.9 percent to 185,971 metric tons of US product.

The largest absolute gain in export volume is attributed to Mexico. The country has increased its exports of US pork products by 66 percent from 101,000 tons to 168,560 tons through July.

Canada and Taiwan have also purchased more U.S. pork this year.

Some of this pickup in business is due to the near-elimination of beef exports due to BSE in the US, said Chris Hurt, Purdue University agricultural economist.

Through July, US beef exports were negligible in important markets like Japan and Korea. Mexico and Canada have purchased some US beef this year, although volumes are down from a year ago.

Hurt said domestic pork demand has also benefited from the popularity of high-protein diets.

"Finally, it appears that retailers have heavily featured pork as a lower-priced alternative to record-high beef prices," he added.

Beef prices are expected to average nearly $4.10 per retail pound this year vs. $2.75 for pork.