USA

USMEF: Pork export value reached 697.3 million dollars in October

October exports of U.S. pork were the largest in more than a year, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Posted on Dec 09 ,05:10

Pork exports reached 238,198 metric tons (mt) in October, up 5% from a year ago and the largest since June 2021. Pork export value increased 13% to $697.3 million, the highest since May 2021. For January through October, pork exports were 12% below last year at 2.18 million mt, valued at $6.26 billion (down 8%).

USMEF President and CEO Dan Halstrom noted that the October pork results were bolstered by outstanding growth in variety meat exports, which set a new value record at $126.2 million. Export volume was the second largest on record at more than 55,000 mt.

"The recent rebound in pork variety meat exports is tremendous news for the U.S. industry on a few different fronts," Halstrom said. "While exports to China have regained momentum, our ongoing efforts to diversify destinations for pork variety meats are definitely paying dividends. Larger shipments also reflect an improved labor situation at the plant level, which has helped increase the capture rate for variety meat items."

Pork variety meat exports, which averaged nearly $10 per head slaughtered in 2021, were particularly strong in October at 55,271 mt – up 33% from a year ago and the second largest volume on record. Export value was record high at $126.2 million, up 29%. While growth was driven primarily by record exports to China/Hong Kong (37,499 mt, up 51% from a year ago), exports also increased significantly to Mexico (11,941 mt, the largest since early 2020) and Japan (1,225 mt, the largest since 2018). October exports also trended higher to Central America, the Caribbean and Colombia. For January through October, global exports of U.S. pork variety meat totaled 426,232 mt, down 5% from a year ago (when pork variety meat exports reached the third highest annual total on record), valued at $1.03 billion (down 1% from last year’s record pace).

For pork and pork variety meat exports, October was another terrific month for leading market Mexico. While exports increased modestly in volume (84,915 mt, up 1% year-over-year), export value to Mexico reached a record $203.1 million – up 41% from a year ago. For January-October, exports increased 11% from a year ago in volume (781,717 mt) and 17% in value ($1.63 billion). Mexico’s demand for U.S. pork has remained very strong amid efforts to attract additional suppliers to the market. In May, Mexico temporarily suspended import duties on pork, beef and chicken from all eligible suppliers, leading to an increased presence of European pork. In mid-November, Mexico opened to pork from approved plants in the Brazilian state of Santa Catarina, provided that it goes directly into further processing.

October pork exports to China/Hong Kong climbed 37% from a year ago to 57,345 mt, valued at $141.3 million (up 39%). While driven in large part by strengthening demand for variety meat (see above), pork muscle cut exports to the region also increased 16% to 19,846 mt, valued at $54.1 million (up 37%). Though coming too late to impact October exports, China’s easing of some COVID restrictions is expected to eventually provide a boost for consumer demand, especially in the country’s beleaguered foodservice sector.

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

• October exports to South Korea increased 25% year-over-year to 12,535 mt, while value climbed 26% to $43.7 million. This pushed January-October totals to 145,506 mt, up 5% from a year ago, while value increased 13% to $510.9 million. Earlier this year, Korea opened a 70,000 mt, duty-free quota for imported pork in an effort to ease consumer prices. But the impact on Korea’s competitive landscape has been minimal because imports from the U.S., the European Union and Chile already enter at zero duty. The move mainly benefited imports from Canada, Mexico and Brazil.
• October pork exports to the ASEAN region reached 4,700 mt, up 11% from a year ago, while value soared 47% to $15.9 million. In the Philippines, which accounted for most of this growth, President Ferdinand Marcos Jr. is still weighing whether to extend the executive order that has reduced duties on imported cuts for the past 18 months. Without an extension, Philippine tariff rates will return to normal levels – among the highest in the world at 30% in-quota and 40% out-of-quota – at the beginning of 2023. Despite a recent uptick in demand from the ASEAN, January-October exports to the region were still 47% below last year at 44,512 mt, valued at $131.1 million (down 41%).
• October exports to the Dominican Republic reached 7,218 mt, up 45% from a year ago, while export value increased 59% to $21.8 million. January-October exports to the DR already set annual records, with volume totaling 65,856 mt, up 39% from a year ago, while value increased 42% to $174.7 million. The DR temporarily suspended import duties on red meat and poultry in June, heightening competition in the pork market. But the decree suspending these import duties has expired, which means the U.S. is once again the only major pork supplier with duty-free access. Imports from other major suppliers are subject to the DR’s most-favored-nation rate of 25%.
• Pork exports to Colombia are on a record pace in 2022 but have faced significant headwinds in the fourth quarter, including a slumping Colombian peso. Exports took a step back in October, with shipments declining 32% from last year’s large totals in both volume (8,009 mt) and value ($21.4 million). Through October, exports to Colombia remained 4% above last year at 86,136 mt, with value up 3% to $207 million. It will be difficult, however, for shipments to match last year’s large volumes in November and December.
• October pork export value equated to $63.87 per head slaughtered, up 14% from a year ago. This pushed the January-October average to $60.18 per head, down 5%. Exports accounted for 28.3% of total October pork production, up from 26.5% a year ago, while the ratio for muscle cuts increased slightly to 23.4%. The January-October ratios were 27.1% and 23.4%, down from 29.7% and 26.1%, respectively, in the first 10 months of 2021.

Comments

Similar articles