Asian FMD boosts US pork exports

A spokesperson for the US Meat Export Federation (USMEF) told GlobalMeatNews​: “Growth was spurred by pork shortages in China and South Korea – related to foot-and-mouth disease (FMD) – boosting exports from both the US and the EU. Renewed access to China certainly was a factor. ​

“Exports also benefited from duty-free tariff-rate quotas in 2011, as Korea attempted to alleviate inflation in pork prices amid its 30% drop in production. But US exports to its top-value market, Japan, were also a record high, as were exports to Canada, and the US maintained relatively steady exports to top-volume market Mexico.”​

Export value to Japan, the world’s biggest importer and the country’s biggest market, reached $1.79bn in November, up 17% year-on-year. USMEF president and CEO Philip Seng said: “USMEF has continued to market US pork aggressively in Japan, because we know it is a valuable and fiercely competitive market. When we first broke the $1bn barrier in 2005, some speculated that this market may have peaked. They said so again in 2008, when exports hit $1.5bn. To be approaching $2bn is remarkable, and it shows just how vital Japan is to the bottom line of the US industry.”​

The federation added that the success of US pork in Asia in 2011 was the result of low supply, meat quality and a weak dollar, and that the 2012 outlook was positive. “Both China and South Korea are increasing domestic production, which could lead to a slowdown in the pace of imports this year, but US exports to these markets will still trend at a new higher level, and the US will soon benefit from the KORUS free trade agreement.​

“US pork exports to Japan, Mexico, Canada, Central/South America etc should remain strong and steady, driven by continued growth in demand for US pork and reduced duties through free trade agreements,”​ the spokesperson said.

November exports reached 29% of production, with a record value of $59.98 per head slaughtered, $15 higher than a year ago. Export value for the year was about $55.21 per head, instead of $43.72 in 2010.