October 11, 2008

China's pork industry has sent an 11-member delegation to begin a week-long inspection of US pork production and processing practices.

The team will visit Ohio, Indiana, Illinois and Iowa over the week to gain firsthand insights on all aspects of the US pork industry.

The Chinese team visiting the US will not only increase its understanding of the US pork industry, but also to develop contacts with producers and exports. In Ohio, the team will receive an education view of Ohio pork research and production, as well as the opportunity to meet with representatives from many sectors of Ohio agriculture.

China has become one of US pork's top markets; during January-July, China/Hong Kong imported 286,335 tonnes of pork at a value of US$497 million, up 288 percent and 373 percent on-year, respectively.

Market conditions have declined in recent weeks, as China made efforts to boost its domestic pork production which led to significant herd expansion. Larger inventories pushed down live hog prices, including a drop of 15 percent in September alone. Piglet prices in major hog-raising regions of China have also dipped nearly 40 percent from their peak in early spring. These factors are severely limiting market opportunities for US pork, especially muscle cuts.

The first half results showed that China has excellent market potential for US pork, but current conditions reveal a volatile and price-sensitive market, according to Donald Song, USMEF's senior representative for north China.

"The longer-term fundamentals point to a strong future for US pork exports to China, but success in this market will not come easily. Our marketing efforts will need to be more focused and efficient than ever," Song said.