May Pork Exports Continue Up; Beef Results Mixed

By CnAgri2012-07-13 19:56:32 Print

U.S. pork exports in May were up 3 percent in volume (186,809 metric tons) from a year ago and 9 percent higher in value ($524.3 million). Through the first five months of the year, pork exports exceeded last year's record pace by 6 percent in volume (968,485 metric tons) and 15 percent in value ($2.7 billion). Although May was the strongest month so far this year for U.S. beef exports, volume (95,221 metric tons) was down 13 percent compared to May 2011 and stood 10 percent lower (456,343 metric tons) through the first five months of the year. Beef export value in May ($471.1 million) was 4 percent higher than a year ago, which kept year-to-date export value ($2.19 billion) 5 percent ahead of last year's record pace. These results are based on statistics released by the USDA and compiled by the U.S. Meat Export Federation (USMEF).

With the exceptions of South Korea, Taiwan and the Philippines, U.S. pork export value is trending upward to every major destination. Exports to Korea were extremely high in 2011, due in part to a foot-and-mouth disease-related shortage of domestic pork and temporary duty-free access for a large volume of imports. U.S. exports to Korea through May stood at 77,790 metric tons valued at $222.8 million, down 32 percent in volume and 19 percent in value from last year's record pace, but still far exceeding exports in the first five months of any previous year.

Mexico continues to perform well as the leading volume destination for U.S. pork, and ranks No. 2 in value. While May exports to Mexico were about even with last year, exports through the first five months of the year were 15 percent higher in volume (254,059 metric tons) and 13 percent higher in value ($463.6 million). USMEF recently launched a campaign to build overall demand in Mexico by enhancing the image of pork and broadening its appeal among Mexican consumers.

"USMEF has reached agreements with several major supermarket chains in Mexico - totaling more than 500 outlets - to help USMEF promote pork through advertising and point-of-sale materials and to collect important sales data for evaluating the effectiveness of the campaign," explained USMEF President and CEO Philip Seng. "Per capita pork consumption in Mexico is only about 25 pounds per year, compared to 47 pounds in the United States. So we feel there is still great potential for expansion of overall demand, with the U.S. industry positioned to be the primary beneficiary."

Japan remains the leading value destination for U.S. pork, with exports through May reaching $869.1 million. This is 10 percent above last year's record pace, despite a 5 percent decline in volume (199,061 metric tons).

Meanwhile, two regions in which U.S. beef exports are surging in both volume and value are Russia and Central and South America. Though export activity to Russia has slowed in recent weeks, January-May exports were 24 percent ahead of last year's record pace in volume (32,307 metric tons) and 83 percent higher in value ($138.8 million). Bolstered by terrific growth in Chile, exports to Central and South America were up 42 percent in volume (14,715 metric tons) and 83 percent in value ($53.8 million).

"In Russia, we are aggressively promoting U.S. beef across several sectors and in a variety of geographic regions," Seng said. "From the Black Sea coast where the next Winter Olympics will be held, to the far eastern port of Vladivostok, U.S. beef is becoming more widely known and is in very high demand. Russia has expanded the import quota for U.S. beef this year, and we intend to make full use of that opportunity."

As with pork, U.S. beef exports have slowed dramatically to Taiwan. Exports in May were down about 90 percent from last year, while year-to-date exports were 54 percent lower in volume (6,175 metric tons) and 47 percent lower in value ($39 million). While the Taiwanese government is expected to take action soon on a maximum residue level (MRL) for ractopamine in imported beef, U.S. beef sales likely face a lengthy recovery due to the political controversy surrounding this issue.