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USDA: August pork exports trend higher

Pork

August exports of U.S. pork topped year-ago totals for the first time in 2022, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports were slightly above last August’s large volume and again topped $1 billion in value, reaching this milestone in seven out of eight months this year.

Posted on Oct 10 ,04:55

Pork exports reached 226,293 metric tons (mt) in August, up slightly from a year ago and the largest since November 2021, while export value climbed 4% to $659.6 million. Through August, pork exports were 15% below last year at 1.72 million mt, valued at $4.9 billion (down 13%).

August beef exports totaled 133,832 mt, up 1% year-over-year and the second largest volume on record – trailing only May 2022. Export value was just under $1.04 billion, slightly below the then-record total achieved in August 2021, which was the first time monthly exports topped the $1 billion mark. For the first eight months of 2022, beef exports increased 5% from a year ago to 1.004 million mt, valued at $8.23 billion – a remarkable 24% above last year’s record pace.

"We speak often about the importance of developing a wide range of markets for U.S. red meat, and the August export results are a great illustration of that," said USMEF President and CEO Dan Halstrom. "Exports face significant headwinds in some key destinations, with weakened currencies topping the list. But the emphasis on broad-based growth really pays dividends in these situations, allowing the overall export picture to remain very positive. I also cannot say enough about the loyalty of our international customers, many of whom have diminished purchasing power but continue to show a strong preference for U.S. red meat."

Pork exports led by growth in Mexico, Korea, strong variety meat demand

August pork exports were once again led by Mexico, where 2022 shipments remain on a record pace. While August export volume (81,178 mt) was up only slightly from a year ago, export value increased 20% to $195 million. This pushed January-August exports to Mexico to 620,718 mt, up 14% from a year ago, while value increased 13% to $1.25 billion. Unlike many trading partner currencies, the Mexican peso has been remarkably stable, averaging just over 20 pesos to the dollar this year, remaining essentially steady with 2021.

Fueled by strengthening demand for pork variety meat, pork exports to China/Hong Kong totaled 55,695 mt in August, up 14% from a year ago, while export value climbed 31% to $137.8 million. Most of the volume increase was in the variety meat category, for which exports were record large (34,831 mt, up 18%). But muscle cut exports were also 7% above last year at 20,864 mt, the highest since June 2021. For January through August, total exports to China/Hong Kong remained 44% below last year at 323,422 mt, with value down 37% to $850.1 million.

South Korea recently opened a duty-free quota on imported pork – a move that mainly benefited Canadian, Mexican and Brazilian pork, because imports from the U.S., the European Union and Chile already enter Korea at zero duty. While August volume was the smallest in six months, U.S. exports to Korea were still sharply higher than the small year-ago total, climbing 37% to 13,568 mt. Export value reached $48.6 million, up 34%. For the first eight months of 2022, pork exports to Korea were 1% above last year at 120,687 mt, while value was up 9% to $424.1 million.

Other January-August results for U.S. pork exports include:

• Fueled by record exports to China/Hong Kong (see above), global exports of U.S. pork variety meat were the third largest on record in August at 52,958 mt, up 14% from a year ago. Export value was the second largest on record at $118.3 million, up 12%. In addition to China/Hong Kong, August exports increased year-over-year to the Philippines, Vietnam, Canada, Colombia, the Dominican Republic, Japan, Korea, Guatemala, Honduras and Taiwan.
• August pork exports to the Philippines rebounded to 5,712 mt, up 44% from a year ago and the largest in 13 months. Export value climbed to $18.1 million, up 66%. August exports to Vietnam and Singapore were also higher year-over-year, pushing shipments to the ASEAN region to 6,489 mt (up 49% from a year ago), valued at $20.5 million (up 66%). For January through August, exports to the region were still 53% below last year at 35,432 mt, valued at $102.6 million (down 49%).
• Although August exports to Colombia were slightly below last year in both volume and value, year-to-date exports remain on a record pace. Through August, shipments to Colombia increased 10% to 69,502 mt, while value was up 9% to $163 million.
• Led by strong demand in the Dominican Republic, pork exports to the Caribbean also remained on a record pace through August at 64,294 mt, up 33% from a year ago, valued at $175.6 million (up 36%). While the DR accounted for most of this growth, exports are also on a record pace to the Bahamas, the Leeward-Windward Islands, Bermuda and Turks and Caicos. Shipments also trended higher to most other markets, including Barbados, Cayman Islands, Haiti and the Netherlands Antilles.
• Pork exports to Japan continued to trend lower in August at just under 27,000 mt, down 18% from a year ago, valued at $107.4 million (down 25%). Through August, exports to Japan were 10% below last year’s pace at $245.3 million, valued at $1.02 billion (down 11%). With the historic devaluation of the yen, Japan has been importing dramatically more pork from the European Union, Mexico and Brazil.
• August pork export value equated to $60.04 per head slaughtered, up slightly from a year ago. The January-August average was $59.40 per head, down 9%. Exports accounted for 27.3% of total August pork production and 22.5% for muscle cuts, down from 28.3% and 24.3%, respectively, a year ago. The January-August ratios were 26.9% and 23.5%, down from 30.4% and 26.8% in the first eight months of 2021.

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