Exports were a shining star for the U.S. pork industry in 2023, says Courtney Knupp, National Pork Board’s vice president of international market development. And with the market dynamics at play, that means a lot to a U.S. pork producer’s bottom line.
“Almost 30% of our production in 2023 went into international markets. That’s just shy of about $65 contributed to the price of a pig that comes from the value and results of our exports,” Knupp explains.
U.S. pork exports surged significantly in December 2023, contributing to a record-breaking year. Export value set a new record at $8.16 billion, up 6% while export volume totaled 2.907 million metric tons, up 8% from 2022.
“Of course, that doesn’t tell the whole story. The last five years have been extremely volatile in the global market in general, meat trade included. When we look at that, versus the five-year average, we were up 6% in volume, but most excitingly, up 11% in value,” Knupp explains.
Regardless of how you crunch the numbers, 2023’s success shows that the strategy to diversify and differentiate export markets and U.S. pork ensures that the industry goal to sell every part of the pig at the highest value every day is working.
“We’re seeing more value per unit exported over time, which is exactly why we’ve invested in trade promotion for pork exports for decades and continue to do so by developing markets by building relationships and providing technical expertise,” Knupp adds.
Mexico is No. 1 for Volume and Value
Exports to Mexico produced record-breaking figures in both volume and value, standing out as a key market once again, she says. About $2.35 billion of U.S. pork was sold into Mexico, just over 28% of total exports from a value perspective.
“Mexico is a strong ham market for us, but we’re increasing and spending more resources to diversify pork demand in Mexico,” Knupp says. “We are really pushing the pork loin – not only in Mexico, but across the globe and seeing great results for increasing demand in the Western Hemisphere for the primal.”
Through projects focused on pork loin’s versatility and nutritional profile, they are seeing more use of this product, which is really exciting, she says.
We Can Celebrate More Than Mexico, Too
The U.S. has seen great uptick in sales to the Western Hemisphere, inclusive of the Central American countries, the Dominican Republic and Colombia. But even more promising is what’s taking place in the Asia-Pacific region.
“We have been at a disadvantage from a price and market access standpoint in previous years, but with the European Union’s contraction and spread of African swine fever across the region impacting domestic supplies, it’s giving us opportunities to capture more market share in key countries like Australia, New Zealand, the Philippines and Vietnam,” Knupp says.
South Korea and Japan remain key markets. Korea was up nicely, she says, but the Japanese market has had a lot of challenges with currency and inflation, so exports to Japan were down a bit but still proving to be a valuable market for U.S. red meat.
What About Brazil?
There’s no question Brazil is a growing as a key competitor in the global export market, increasing pork production and exporting more pork.
“We’re going to continue to focus on creating a differentiated brand for U.S. pork, realizing that Brazil is present in a lot of our markets in Asia but also creeping into the Western Hemisphere,” she says. “While we are seeing a great position versus the Europeans, we’re keeping our eye on our southern competitor and focusing resources to combat their presence.”
USMEF’s presence and focus on creating value beyond price with relationships is one of the key differentiators from Brazil or other competitors, Knupp says.
“Brazil is strong in those markets that are more price oriented. The Brazilians do have a lower cost of production. That’s largely due to their availability of labor, which is a larger challenge in our market,” she says.
While other competitors like Canada are struggling with the same challenges, Knupp says the U.S. is not letting off the gas pedal for 2024.
“We maintain dominant market share in Mexico, upwards of 90% for imported product. Our supply chains are greatly integrated, and we are able to send fresh, quality and consistent products direct to importers over the border,” she says.
That’s an important point because of the structure of the Mexican market. Buyers are set up to receive fresh product and they don’t have large cold storage for frozen product. U.S. pork is largely chilled and doesn’t need to be thawed out like Brazilian products, which is a key selling point from a logistics standpoint.
China Remains the Wild Card
The Brazilians are showing up in strength in Asia, as they send a pretty large percentage of their exports to China, Knupp explains. For the U.S., China remains the No. 1 purchaser of U.S. pork variety meats. This is incredibly valuable for the U.S. as 2023 variety meat shipments valued at about $850 million.
“China’s a challenge as we don’t have great access for muscle cuts due to tariffs in place while at the same time their population and consumption of pork is declining over time,” she says.
