News Pig market
US pork exporters face headwinds
The export figures of the US pig sector show a downward trend. Although neighboring Mexico again imported significantly more in February, the drop in demand in China is cutting back sharply. Export volumes to Japan and South Korea are also under pressure.
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In January and February, the US exported 338.000 tons of pork, including by-products, according to figures from the meat export federation USMEF. This is a decrease of 20% compared to the same month in 2021. China in particular imports significantly less American pork. European exporters are also struggling with a sharply reduced Chinese demand now that the country itself is experiencing an oversupply struggling.
In January and February, the US shipped only 27.000 tons to China (including Hong Kong), compared to 101 tons a year earlier. This amounts to a decrease of 73%. The underlying value fell in the same order of magnitude. Sales to Japan, the most important sales market in terms of value, fell by 10% to 57.000 tons. Exports to South Korea fell by 3% to 27.000 tons. In addition to reduced demand, exports to distant destinations are hampered by disrupted logistics around the world.
Mexico to the market
Things are better closer to home. The sales to Mexico rose by no less than 41% to 143.000 tonnes in the first two months of this year. The neighboring country is now by far the most important sales market. Mexico is facing a pork shortage. Moreover, the US faces little competition from European meat exporters in this market. Sales to other South American countries such as Chile and Colombia are under pressure.
In the coming months, the US expects to benefit from the rapidly rising pork prices in Europe. This has improved the competitive position of American meat exporters on the global market. It is possible that this could stop the declining sales figures in Asia.