Inside Pigs
US pig exports record record at the last minute
In the month that China launched an import tax on pork from the United States (US), American pig exports achieved a record volume. It underlines the importance that the US has in the world market.
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The American pork sector exported 230.049 tons in April, an increase of 13% compared to the same period in 2017. This is evident from figures from the USMEF (the American meat export agency). The underlying value also rose (+13% to $584 million). In the first 4 months of the year, the US exported a net 866.000 tons, an increase of 4% compared to the same period in 2017.
Mexico: main customer
Mexico was again the most important sales market in April. Compared to 1 year earlier, sales increased by 4% to 66.136 tons. The USMEF speaks of stable volumes. It remains to be seen whether this will remain the case in the coming months, given that Mexico recently announced that it would tax the import of American pork with 20%.
40
procent
Opinions differ about the impact of these measures. According to American economists, American pork (even with a tax) is still cheaper than the pork that Mexico produces itself. This is because the cost price of American pig farmers is about 40% lower than that of their competitors in Mexico.
However, this does not change that European exporters see opportunities in the Mexican sales market. Also Mexico itself threw already has a line in place for European exporters. In any case, it does not increase the American sales opportunities.
South Korean demand is booming
If we look at the underlying value, Japan is the most important sales market. This volume (25.650 tons in April) was also virtually the same as the same month in 2017. However, compared to March, there was a decrease. In South Korea, U.S. pork exports are posting unprecedented volume gains. In March, the US shipped almost 20.000 tons of pork to Korea, an increase of no less than 62% compared to 1 year earlier. This export flow has been going well all year long.
Losses in China
Compared to a year earlier, exports to China/Hong Kong shrank by 1% to 14 tonnes in April. This contraction is mainly a result of weakening Chinese demand and not (yet) so much of the import duties imposed by China that month on American pork. The USMEF expects that the Chinese tariffs will be reflected in the export figures from May.
In April, a net 30% of US pork production was exported. In the months before, this percentage was close to 25%. It indicates that export importance is increasing, while sales opportunities in China and Mexico are fading. It reduces the chance of a new export record.