November 17, 2015

 

US, Canada pork exports decline in first 9 months

 

 

Pork-exporting countries US and Canada registered declines in export volumes in the nine months through September.

 

US pork exports declined by less than 1%, or 42,000 tonnes, year on year to 1.1 million tonnes, while Canadian pork exports by 4% to 620,000 tonnes, according to AHDB Pork, a division of the UK's Agriculture and Horticulture Development Board.

 

Earlier, US exports were expected to rise as its pork production had risen 8% due to continued recovery from porcine epidemic diarrhea virus, or PEDv. The strong US dollar has been blamed for the export fall.

 

The decline could have been higher had it not been for the higher volumes of pork exported in the second and third quarters. The first quarter of the year registered much lower figure.

 

The strengthening US dollar, along with possible resurgence of PEDv and continued supply expansion, among others, makes export year 2016 highly uncertain, according to analysts from the agricultural lender Rabobank.

 

Mexico remained as the largest market for US pork, with exports to the country rising by 10%. Exports to South Korea also increased, by 40%.

 

Exports to Japan, China down

 

Shipments to both Japan and China during January-September, however, were down by 4% and 22% respectively compared with the previous year, according to AHDB Pork. Rabobank reported that demand for pork in China remained weak due to slower economy. It was also noted that China's pork imports the EU increased due to the depreciation of the euro. Imports from Germany, in particular, increased significantly by 90%, elevating the Western European country to being China's largest pork supplier, with share of 25% of total imports.

 

Rabobank, however, is optimistic that despite the stronger dollar, US will increase its shipment to China in the fourth quarter and into 2016.

 

Total value of pork exports declined by 18% to just over $3billion, as unit prices of pork were below last year's levels.

 


 

Canadian exports consistently declined throughout the first nine months, with the lowest volume registered in the third quarter. The US remained the top destination for Canadian pork, taking almost 19% more than the same period in 2015. According to figures given by Rabobank, Canada exported 3.3 million hogs to the US during the first seven months.

 

Exports to Mexico also increased, by 34%.

 

Exports to Japan and China, however, declined by 6% and 24% respectively, whilst trade with Russia was at a standstill as sanctions remain in place. Just like the US, the total value of Canadian exports in the first three quarters fell, by 15% to just under C$2 billion (US$1.5 billion). --Rick Alberto

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