Record-shattering U.S. Pork exports are putting more money into producers’ pockets, as export values soared to nearly $60 per head in November of 2011—$15 higher than a year ago.
“While industry observers expected fourth-quarter numbers to be strong, the latest export numbers were definitely a pleasant surprise,” says Becca Hendricks, assistant vice president of international marketing for the Pork Checkoff.
November pork exports equated to nearly 29 percent of total pork and pork variety meat production, according to statistics released by the U.S. Department of Agriculture and compiled by the U.S. Meat Export Federation (USMEF). For January through November of 2011, the percentage of total production exported equated to 27 percent, up from 23.7 percent during this period in 2010.
“Data through November showed the U.S. exported $5.525 billion worth of product. This puts U.S. pork export values, which had never reached $5 billion before this year, on pace to approach the $6 billion mark in 2011,” Hendricks says.
China’s appetite for U.S. Pork continue to grow
November’s U.S. Pork exports were bolstered by spectacular results in the China/Hong Kong region, which set another monthly record at 148 million pounds valued at $140.2 million. For the year, export volume to this region jumped 68 percent to 945.1 million pounds, and export values nearly doubled to $794.6 million.
The numbers are even more impressive on a year-by-year comparison, says Hendricks, who notes that for the month of November, the volume increase from 2010 to 2011 hit 139 percent, while the percentage change in value for the month soared to 209 percent.
There are a number of factors driving China’s tremendous demand for U.S. Pork, says Hendricks, who cites a growing demand for affordable protein and disease problems among the Chinese swine herd.
“China’s growing middle class is buying more meat, and pork is their number-one preference for protein. In addition, they turned to the United States in the fourth quarter of 2011 to provide enough product for Chinese New Year celebrations, which begin at the end of January.”
Korea offers more export opportunities
Pork exports to South Korea also continued to build on a record year, with November results up 62 percent in volume to 25.7 million pounds and more than double in value to $35.6 million. For the year, exports to Korea have soared by 126 percent in volume (380.9 million pounds) and 176 percent in value ($453.7 million).
“Korea’s swine industry has struggled in recent years, since 30 percent of the nation’s sow herd was culled due to a foot-and-mouth disease outbreak,” says Hendricks, who notes that U.S. Pork exports have helped fill this demand.
Japan remains the leading value customer
U.S. pork also continues to perform remarkably well in Japan, with November 2011 results up 6 percent in volume and 17 percent in value over a year ago. For January through November of 2011, the value of exports to Japan reached $1.79 billion, easily establishing a new record and setting the stage for a year-end value total that could reach the $2 billion mark.
“These numbers show just how vital Japan is to the bottom line of the U.S. Pork industry,” says Hendricks, who notes that Japan remains a leading market for U.S. Pork exports, both in terms of value and volume. “Japan is also a perfect example of how USMEF and Pork Checkoff-funded efforts to promote U.S. Pork pay off over time.”
Japanese consumers are even more interested in U.S. Pork as the nation recovers from the massive earthquake and tsunami that hit the nation in March of 2011, Hendricks adds. “They are concerned about the safety of their domestic food supply, and they are more open to safe, high-quality imports, and are more aware of the quality and value of U.S. Pork.”
Looking ahead in 2012
Hendricks is encouraged by the recent trends in U.S. Pork exports and notes that expanded markets are emerging in 2012, thanks to trade agreements with Korea, Columbia and Panama. “These will create even more opportunities for U.S. Pork in the years ahead.”