China drives US pork exports

New figures from the United States Department of Agriculture (USDA) and the Meat Export Federation show that the pork exports increased by 8,5% to 225.376 tonnes in October. The export value also increased by 10% to $592 million. This amounts to a value of approximately €534 million. The export volume in the period January to October is 5% higher than last year (2,13 million tons), while the value is 3% higher ($5,48 billion).

Exports in October accounted for approximately 24% of total American exports pork production, which means that more meat is intended for export in 2019 than last year. If we look at the figures from January to October, exports in the month of October accounted for 26% of the country's pork production. This is also more than last year.

China stimulates exports
Although the United States is still experiencing the negative consequences of the trade war with China, pork exports still managed to increase 150% in October (year-on-year). Exports to China rose to 61.062 tons in that month last month was still 51.192 tons. The export value was 127% higher than in the same month last year, at $141,3 million (approximately €127,5 million). If we look at the first 10 months of the year, exports to China increased by 55% to 468.576 tons. The value rose 34% to $974,8 million. Exports are therefore already above the level of 2018 as a whole.

The fact that the Chinese are asking for large quantities of pork is mainly due to the many outbreaks of African swine fever. As a result, the pig herd has shrunk by almost 50%. "We also remain hopeful that the United States and China trade relationship will return to pre-trade war levels. Only then will we have a level playing field with our competitors," Dan Halstrom, president of the American Export Federation, said in a statement.

As a result of increased exports to China, pork exports to Mexico decreased in October. The export volume is 18% lower than last year and amounts to 54.639 tons. The value of exports is 9% lower and amounts to $97,3 million. This is the lowest export value since April. The export figure for the first 10 months is 11% lower than last year and amounts to 584.415 tons. At the same time, export value fell by 9% to $1,02 billion. “The increased demand from China is pulling some meat away from Mexico and other markets,” Halstrom said. "The sector is still feeling the effect of the retaliatory measures from Mexico on pork, which were in force for about 1 year."

Agreement with Japan
Now that the United States and Japan have taken a big step in their trade agreement, the prospects for the sales market are much more positive. The fact that American exporters are currently still faced with high import tariffs is clearly visible in the October export figures. This year's export in October was 16% lower than last year, at 29.622 tons. The export value is 17% lower: $122,3 million. Until October, exports to Japan are 7% behind last year, both in volume (307.974 tons) and in value ($1,27 billion).

Exports to Central America, on the other hand, were 16% higher in October than last year and amounted to 76.861 tons. The export value to Central America was 19% higher: $187 million. The biggest drivers were Panama, Honduras and Guatemala. The export volume to South America was 2% lower: 13.934 tons. It is striking that the value is higher: +12% to $35,9 million.