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USMEF: Korea shines in March as pork exports close excellent first quarter

Pork

March exports of U.S. pork were steady with last year’s volume and edged higher in value, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Posted on May 20 ,00:10

Pork exports totaled 260,430 metric tons (mt) in March, up 0.1% from a year ago, valued at $740.8 million – up 2% year-over-year and the seventh highest on record. Through the first quarter, pork exports increased 6% to 762,784 mt, while export value climbed 7% to $2.11 billion. 

"Another strong month on the pork side, and one that illustrates the importance of export market diversification", noted USMEF President and CEO Dan Halstrom. "Shipments to Mexico cooled a bit, reflecting the earlier timing for Easter, and yet the global total remained very robust through increases to Korea, Colombia, Central America and Australia. When export value exceeds $70 per head slaughtered, that’s welcome news for pork producers and the entire supply chain". 

South Korea’s demand for U.S. pork continued to build momentum in March, reaching the third largest volume on record at 27,508 mt – up 44% from a year ago – while export value was the second highest on record at $90.6 million (up 54%).

Through the first quarter, exports to Korea climbed 54% above the year-ago pace in volume (69,452 mt) and jumped 59% in value ($227.6 million). After several years in the #5 position for U.S. pork exports, Korea has surpassed Canada as the fourth largest export destination, trailing only Mexico, China and Japan. 

Led by record exports to Costa Rica and Nicaragua and larger shipments to Honduras, Guatemala and Panama, March pork exports to Central America increased 28% from a year ago to 13,626 mt, while value soared 41% to $42.5 million. First quarter exports to the region were up 21% to 37,681 mt, valued at $114.8 million (up 31%). For Panama, exports are front-loaded each year because the pork safeguard is quickly triggered, meaning a higher duty on U.S. pork. This year Panama has initiated efforts to restrict overall import volumes. 

March pork exports to leading market Mexico were lower year-over-year for the first time in 16  months, mainly reflecting the earlier Easter holiday. Exports fell 11% to 84,808 mt, while value was down 9% to $178.4 million. Shipments to Mexico still finished the first quarter on a record pace, up 4% from a year ago in volume (281,261 mt) and 6% higher in value ($575.1 million). 

Other first quarter results for U.S. pork exports include: 

• March pork export value per head slaughtered soared to $70.85, up 12% from a year ago, the highest in nearly three years and the fifth highest on record. This pushed the first quarter average to $64.25, up 7%. Exports accounted for 32.2% of total March pork production and 27.9% for muscle cuts, up significantly from the year-ago ratios of 29.1% and 25%, respectively. First quarter exports accounted for 29.9% of total production and 25.8% for muscle cuts, up from 28.2% and 24.1%, respectively, a year ago. 
• With shipments trending sharply higher to both Australia and New Zealand, January-March exports to Oceania climbed 151% from a year ago to 28,271 mt, with value up 139% to $101.8 million. Most U.S. pork entering this region is raw material for further processing, and the U.S. industry has been rapidly regaining market share from the European Union. Value-added processed products from the U.S. have also gained popularity in Oceania. 
• Robust growth in Colombia fueled a strong first quarter for pork exports to South America, which increased 46% from a year ago to 36,180 mt. Export value jumped 54%, reaching $103.4 million. In Colombia, where most U.S. pork has historically been used for further processing, the U.S. industry continues to make gains in the retail and foodservice sectors. First quarter shipments to Colombia increased 50% to 32,012 mt, while value soared 64% to $88 million. The Colombian peso has recovered from its lows against the U.S. dollar, which helps support purchasing power and importer confidence. Colombia’s hog prices have also remained strong. 
• First quarter pork exports to Japan trended slightly lower than a year ago, falling 2% to 88,473 mt. Export value was down 1% to $357.6 million, as Japan remained the #2 value destination for U.S. pork, trailing only Mexico. 
• Despite lower shipments to the Philippines, first quarter exports to the ASEAN region increased 6% from a year ago to 14,811 mt, valued at $31.6 million (down 10%). Exports continued to soar to Malaysia, jumping 170% year-over-year to 1,503 mt, while value increased 163% to $4.6 million. A strong March performance pushed first quarter exports to Vietnam to 1,528 mt, up 78%, while value climbed 87% to $2.9 million. 
• Large domestic supplies and economic headwinds continue to weigh on China/Hong Kong’s demand for imported pork. In the first quarter, U.S. exports fell 16% from a year ago to 113,248 mt, while export value was down 24% to $266.8 million. The region is the largest destination for U.S. pork variety meat exports, which declined at a less severe pace, falling 4% in volume (82,165 mt) and 14% in value ($195 million).

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