Pork exports are hugely important to pork producers as they add about $63 per head to the value of each hog produced in the U.S. U.S. pork exports hit a record $8.1 billion in 2021, up 55 from the prior year. However, so far in 2022 exports are tracking below 2021. For the first quarter of 2022 they were down 17% by value, at $1.71 billion. By volume they also fell 20% from.
It’s largely a result of the slowdown in China purchases according to Terry Wolters, National Pork Producers Council President. He says, “Definitely its not to the levels it was before but again any of the product we move over there is a benefit to us because often those products that they consume are not products that we use in the United States. We’re still facing tariffs at the door over there. So we certainly like to get those tariffs reduced to a level playing field.”
In 2020 and 2021 China was also buying U.S. pork to restock their reserves after African Swine Fever devastated their herd. But U.S. Meat Export Federation Chair Elect Dean Meyer says they have nearly rebuilt their herd to pre-ASF levels. He says, “You know we kind of watch the price for their pork over there and where its at and its way down and so that kind of tells where they’re at for inventory.”
The strength of the U.S. dollar, COVID lockdowns and shipping obstacles have also been headwinds for all red meat exports, including pork. Meyer says, “And it isn’t just the port it’s the congestion through the port, holding at the port. Not just loading the ships but the chasey shortage. There’s storage yards that you know they don’t have enough room to store it there. “
Despite that other countries have picked up the slack including Mexico, which was the third largest pork export market for the U.S. in 2021, South Korea, the Dominican Republic and Columbia have also seen big increases.
Meyer says, “Mexico’s actually picked up now and ah Columbia was an excellent market last year. You know that’s a new growing market there again a new trade, fairly new trade agreement and its working there.”
That’s why the pork industry wants further expansion of trade to keep exports strong. Wolters says, “We’ve had great success. We continue to depend on that market as you know 30-plus percent of our product is exported and we really need to keep those non-domestic markets. They’re important and we need to keep them open.” And Wolters adds that is why they continue to push the administration for new trade agreements.
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