March 15, 2021

 

US January pork exports below year-ago levels

 

 

US January pork exports totaled 248,656 tonnes, down 9% from a year ago but slightly above the US Meat Export Federation's projections.

 

Export value was down 13% to US$642.8 million. Pork muscle cut exports were down 11% in volume (208,234 tonnes) and 15% in value (US$551.3 million), while pork variety meat shipments trended modestly higher than a year ago.

 

USMEF president and CEO Dan Halstrom said January represented a fairly solid start to 2021, but cautioned that exports still face COVID-19-related obstacles and significant transportation and labor challenges including congestion and container shortages at West Coast ports.

 

January pork exports equated to US$57.14 per head slaughtered, down 9% from a year ago. Exports accounted for 28.2% of total pork production and 25.4% for muscle cuts only, down from 29.8% and 27.4%, respectively, in January 2020.

 

As expected, pork exports to China/Hong Kong were well below last year's very large volumes but still reached 76,202 tonnes (down 21% from a year ago) valued at US$173.3 million (down 29%). While USMEF expects exports to the region to remain below 2020 levels throughout the year, China still has a pressing need for imported pork. Despite the continued 25% retaliatory duty on US pork and pork variety meats, China's demand for pork variety meat remains strong, with January exports of pork variety meat to China/Hong Kong increasing 18% from a year ago to 24,475 tonnes.

 

Pork exports to Japan increased 2% from a year ago in both volume (32,332 tonnes) and value (US$134.6 million). Demand for chilled US pork remains very strong in Japan's retail sector and the US industry has reclaimed market share for ground seasoned pork since the US-Japan Trade Agreement (implemented in January 2020) slashed the duty rate and eliminated a severe tariff disadvantage. Japan's duty rate on ground seasoned pork will notch down again on April 1 to 6.6%, compared to the pre-trade agreement rate of 20%.

 

Coming off a record year in 2020, pork exports to Central America continued in January at 11,023 tonnes, up 56% from a year ago, valued at US$26.9 million (up 43%). Exports more than doubled to Panama and posted impressive growth in Honduras, Guatemala, Nicaragua and Costa Rica.

 

Exports to the Philippines nearly doubled from a year ago, increasing 98% to 4,739 tonnes valued at US$11.3 million (up 99%).

 

Led by strong growth in the Dominican Republic and the Bahamas, exports to the Caribbean increased 33% from a year ago to 6,361 tonnes, with value up 27% to US$15.4 million.

 

Pork exports to Colombia slumped in 2020 but showed improvement late in the year. This momentum continued in January as exports reached 6,624 tonnes, up 6% from a year ago, valued at US$15.2 million (down 2%). Led by continued growth in Chile, January exports to South America increased 3% from a year ago to 10,472 tonnes, though value was down 4% to US$26.7 million.

 

Following a very strong fourth quarter performance, exports to Mexico trended lower in January at 63,757 tonnes, down 10% from a year ago, while value fell 18% to US$110.5 million.

 

- USMEF