Inside: Pig Market
US pig export yield record
November was a peak month for the US pig industry. Never before has pork exports brought in so much money. To which country is this thanks?
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In total, the United States (US) exported around 223.962 tonnes of pork in November, slightly less than in the same month last year. In the first 11 months of 2017, the US exported about 7% (2,23 million tons) more than in 2016. In terms of the underlying value of pork exports, November was even the best month ever. Compared to the same month in 2016, the underlying value increased by 5% to $615.8 million.
November was the fourth month in history in which the underlying asset rose above $600 million. So far in 2017, the export value of pork is $5,9 billion (+10% compared to the same period last year). The booming American pig exports are benefiting from a relatively weak dollar. In the past year the dollar has fallen considerably in value compared to the euro.
South Korea to the market
South Korea is the export destination that stands out. For example, exports to Korea increased by 30% to a value of $420 million and increased by 28% to a volume of 153,569 tons. The volumes to Korea are easily declining due to the KORUS free trade agreement. This trade agreement between the US and South Korea exempts pork from import duties.
Neighboring country Mexico is also an important customer. Sales to China and Hong Kong, on the other hand, fell by 9% to 454.816 tonnes. Exports to China have picked up somewhat again since October. This is due to an increasing demand, which is related to the Chinese New Year (16 February).