July 23, 2020

USDA: frozen pork inventories down 25%, exports to China increased

The United States Department of Agriculture's (USDA) monthly report showed frozen pork inventories in the country fell 25%, but Panjiva data showed seaborne pork exports to China increased 125% year-on-year in June, Reuters reported.

Even as domestic meat production in the United States has steadily recovered after several plants were ordered to shut down temporarily due to COVID-19 in April and May, cold storage pork supplies remain low.

According to the USDA there are 464.373 million pounds of pork (including ribs, loins and hams) as of June 30 in cold storage facilities. This is lower than the 467.927 million pounds in May and 619.454 million pounds in June 2019.

Rich Nelson, commodity broker Allendale chief strategist said the decline was the smallest since 1970, following a record decline in May. He said supplies normally fall by about 30 million pounds in June.

Nelson said pork production in the US increased 6% compared to the year prior, as meat plants resumed operations with plenty of livestock backlog to slaughter.

Panjiva, the supply chain research unit of S&P Global Market Intelligence said US exports of pork to China surged 135% year-on-year in June. The report showed Smithfield Foods owner WH Group increased 135% in exports. JBS SA shipments was up 878% and Tyson Foods reported a 1,771% increase.

US meat processors have come under the radar for high pork export numbers to China even though domestic production was disrupted in April.

-          Reuters