US: Pork Exports Decline in January, Lost to EU in China and Other Export Markets

According to data issued by the U.S. Department of Agriculture (USDA) and compiled by the U.S. Meat Export Association (USMEF), U.S. beef, pork and lamb exports fell sharply in January 2015 compared with the previous year. Shipment delays caused by labor disputes on the U.S. West Coast and a combination of economic factors caused U.S. beef and pork exports in January to fall to the lowest level in four years.

However, Philip Seng, president and CEO of the American Meat Export Association, pointed out that the situation facing beef exports and pork exports is very different. In 2015, global beef supplies became extremely tight again, while pork supplies were on the rise; competition in major pork export markets continued to intensify.

Philip Seng pointed out that the congestion of the port is naturally a major reason, and some other negative factors also play a role.

The currencies of the main export markets of the United States have weakened against the dollar, but the currencies of the main competitors of the United States-Australia, the European Union, Brazil and Canada-are also in a weak trend. The price disadvantage is becoming more and more difficult to overcome.

January was the first month that beef tariff cuts under the Japan-Australia Economic Partnership Agreement (JAEPA) went into effect, with further tariff cuts coming in April. Although Japan and the European Union have not yet reached an agreement, the two sides have recently completed the ninth round of economic partnership negotiations. It is expected that the two sides will finally sign an agreement on EU pork tariff reduction. South Korea and Australia's new trade agreements with Canada also narrow the tariff rate advantage that the United States has over these two countries.

U.S. Pork Exports to South Korea Increase, Mexico Steady

pork exports fell 16 per cent to 161165 tonnes in January, while exports fell 15 per cent to $0.4553 billion. The export volume of cut meat (119455 tons) decreased by 20%, and the export value ($0.3745 billion) decreased by 18%. The decline in United States exports to Mexico, the leading export market, was not significant (59306 tons, down 1 per cent), while exports stabilized at $0.1128 billion. U.S. exports to South Korea increased strongly (15262 tons, up 34%) and exports ($51.4 million, up 54%). US pork exports to Taiwan doubled in January compared with sluggish levels in 2014, with total exports rising 28 per cent to 1007 tonnes.

U.S. Pork Exports to Other Major Markets Decline Overall

the United States exported 26493 tons of frozen meat to Japan in January, down 25% year-on-year. In the China/Hong Kong region, European pork exports dominated, while US exports of 17681 tons fell 49%, the lowest level in the past five years, mainly due to market access issues and the weak situation of domestic pork prices in China. Following a deceleration in exports in the second half of 2014, US exports to Australia (2598 tonnes, down 59%) remained sluggish in January, while the EU and Canada increased their respective market shares.

Source: International Animal Husbandry Network Exclusive Compilation http://www.guojixumu.com/newsall.aspx?cid=22&id=4136 on March 12, 2015

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