June 7, 2018

Canada pork exports decline 3% in 1st quarter

Canadian pork exports decreased 3% to 240,000 tonnes in the first quarter, compared with the same period last year.

With average prices also falling, the value of this trade also declined, by 6%, to C$782 million (US$602.66 million).

According to an analysis by the UK levy body AHDB Pork, the drop in Canadian pig slaughter in the first quarter might have limited supplies available for export. Data from Statistics Canada showed that pig slaughterings were 2% lower year-on-year in the first quarter. 

A 19% decline (-12,600 tonnes) in exports to China accounted for most of the drop in export volumes. This reflects lower Chinese import demand this year, the pork division of the Agriculture & Horticulture Development Board said. Shipments to the US - the largest importer of Canadian pork (around a third of export volumes) - also fell, by 6% (-4,300 tonnes), as production in that country is rising.

However, more pork was shipped to Japan, South Korea, Taiwan and the Philippines in the first quarter, compared with last year. "Trade with these countries may continue to increase in importance moving forwards, as prospects for shipments to China and the US look more difficult", AHDB Pork said.

Despite the slow start to the year, Canadian pork production is forecast by the US Department of Agriculture to increase 2% this year to 2 million tonnes as expansion in the breeding herd continues. Throughputs have already climbed 1% on 2017 levels in both April and May, AHDB Pork reported.

Pork exports for the whole year is also expected to record a 2% growth on 2017 volumes.

The Canadian pork industry is heavily reliant on exports, with around two thirds of its pork production being exported.