U.S. Pork Exports Hit Record Levels in 2019
U.S. pork exports posted new volume and value records in 2019, reaching nearly $7 billion, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF), a release from the federation says.
Pork exports were up 34% year-over-year, reaching 282,145 metric tons (mt) in December, passing the previous record set in November 2019 by 9%. Export value was $760 million, which is up 44% from a year ago, and breaking the previous record, also set in November 2019, by 7% the release says. These numbers pushed 2019 exports to 10% higher than the previous year in volume (2.67 million mt) and 9% higher in value ($6.95 billion), breaking previous records for both. The previous records were 2.45 million mt in 2017, and $6.65 billion in 2014.
Pork export value per head slaughtered was $66.70 in December, nearly one-third higher than a year ago and the highest monthly average since 2014. For 2019, per-head value averaged $53.51, up 4% year-over-year, the release says. The percentage of pork production exported also set new records in December, as exports accounted for 32.1% of total pork production and 29.3% for muscle cuts only, up substantially from a year ago (26.1% and 23.6%, respectively). In 2019, exports accounted for 26.9% of total pork production, up from 25.7% and the highest since 2012. For muscle cuts only, the ratio was 23.6%, up from 22.5% in 2018.
After breaking records in November, China and Hong Kong’s demand for U.S. pork was even higher in December, nearly quadruple a year ago, at 110,876 mt. Value was almost six times higher at $274.9 million. Pork exports were up 89% to China and Hong Kong in 2019. The countries’ imports from all suppliers were up 40% year over year and accelerated into December after China’s hog prices peaked in November the release says.
"Despite retaliatory duties and the other barriers U.S. pork faces in China, exports to the China/Hong Kong region closed 2019 with tremendous momentum," says Dan Halstrom, USMEF President and CEO in the release. "We look forward to continued success in 2020, especially if U.S.-China trade relations continue to trend in a positive direction. The coronavirus situation is certainly concerning and disruptive, but it hasn't dampened our enthusiasm for the potential this market holds for U.S. red meat.
Exports to Mexico also ended 2019 on a high note as December volume was up 10% to 66,181 mt and export value was up 46% to $137.6 million, the highest in two years. Hit by Mexico's retaliatory duties for the first five months of the year, 2019 exports to Mexico were down 9% from a year ago in volume at 708,133 mt, but recovered to finish just 2% lower in value at $1.28 billion.
December pork exports to leading value market Japan trailed the previous year by 3% in volume at 29,323 mt, but value increased 3% to $121.6 million. Full-year exports to Japan were down 6% from a year ago in both volume (369,891 mt) and value ($1.52 billion), the release says. Much of this decline was ground seasoned pork, which fell by $86 million due to a wide tariff rate disadvantage compared to European and Canadian product. Beginning Jan. 1, Japan's tariff rates on U.S. pork and pork products were lowered to match those imposed on major competitors, with the rate for U.S. ground seasoned pork falling from 20 to 13.3%.
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