October 15, 2007

 

US pork exports heading to 16th record-breaking year

 

 

Year 2007 should turn out to be the 16th year US exports have broken previous records, pork experts said after the USDA released its data Friday (October 15, 2007).

 

Export predictions took a hit in summer, when sales slowed and the USDA cut its 2007 pork estimate below the 2006 level.

 

Last week, the USDA raised its 2007 pork export projection to 3.027 billion lbs, which puts it over 2006's 2.995 billion.

 

The increase is a match of higher production in the US coupled with higher sales to Japan, China and Russia.

 

August exports, at 241.48 million pounds, was 9.4 percent up from July and 11 percent from a year before.

 

Hong Kong and China together took in 27.46 million pounds in August, making the combined entity the fourth largest importer of US pork, behind Japan, Canada and Mexico.

 

However, this is more than double the figure a year ago, when China and Hong Kong took in a combined 12.51 million pounds of US pork.

 

Earlier expectations that China would import massive pork volumes to offset its pork shortage at home have cooled down as prices of hog futures are now heading south after a sharp rise recently.

 

Still, in all likelihood, China would double its US pork purchases this year.

 

China would remain the fourth largest importer of US pork even if it doubles year-ago volumes, according to Ron Plain, an agricultural economist from the University of Missouri. 

 

Canada is also sending more hogs for production to the US as the pork processing industry shrinks.

 

In August, 877,564 hogs came from Canada, the largest in the past 12 months, according to the USDA.