May 11, 2023

US pork exports surge in Q1, driven by Europe's production challenges

The US Meat Export Federation (USMEF) said US pork exports experienced a robust Q1 2023, with a 14% increase compared to the previous year, reaching 716,691 metric tonnes, The Hog Farmer reported.

The export value also climbed 15%, amounting to US$1.963 billion.

The European Union's (EU) pork industry, facing mounting production challenges and substantial financial losses, has contributed to tightening supplies and rising prices, making 2023 a promising year for US pork export growth.

According to the U.S. Department of Agriculture's (USDA) recent GAIN Report, the EU's swine herd saw a decline of over 5% in 2022, with significant reductions observed in countries such as Germany, Denmark, France, and Poland. Spain, the Netherlands, Belgium, Austria, Romania, Bulgaria, Hungary, and the Czech Republic also witnessed moderate reductions in their swine herds. Italy was the exception among EU member states, with an increase in the swine and sow herd due to a rebound in demand for cured meat.

While EU pork and pork variety meat exports faced a 15% decline in 2022, the export volume remained high at 4.58 million metric tonnes, surpassing levels seen in 2018 and previous years.

With a sharp drop in production and limited pork availability for export, coupled with rising production costs affecting the competitiveness of European pork, EU exports in 2023 are projected to decline by another 15%, reaching 3.89 million metric tonnes. This is the lowest since 2015.

Spain and Denmark, the most competitive pork producers within the EU, have redirected their focus to the internal European market, increasing sales to other member states. This strategic shift aims to offset the decrease in China's demand, which has been a significant factor impacting the EU's export share.

EU exporters significantly increased shipments to markets outside of China in 2022, offering their products at lower prices. This influx of affordable European pork contributed to a decline in the US's import share in several countries.

-      The Hog Farmer