Colombia’s pork market is steadily developing as consumers balance the competitive low cost of chicken with a need for variety, Gira writes in its latest report on Colombia in a study funded by the National Pork Board focusing on differentiation of U.S. pork in key international markets.
Beef consumption has declined in the last decade, but pork has more than made up for the losses. Despite programs to develop domestic production, imports have become a necessary part of the supply balance and provide a cost comparative input in a very price sensitive market, the report explains.
Imports of pork to Colombia have exploded over the last 10 years. For most of this time, the U.S. has been the dominant supplier aided by a 2012 free trade agreement and the U.S.’ cost-competitive position. However, the U.S. market share has slipped from over 90% in 2017 to 74% in first half 2022, as other global exporters look for alternatives to China, Gira highlights.
“With more potential competitors in the market, the U.S. will need to be more than cost comparative to defend its market position long term,” the report explains.
Why are Colombians Eating More Pork?
The National Pork Board has a history of working in partnership with the Colombian pork industry, says Courtney Knupp, vice president of international market development at the National Pork Board.
Throughout the last decade, the U.S. has partnered with Pork Colombia to grow overall demand for pork consumption, a driver that has enabled Colombia to continually modernize their domestic industry.
“We did general pork promotion campaigns that we co-partnered on to promote consumption in the country. Now, five to 10 years later, we’ve seen consumption continue to grow. And that’s a great example where that helped to modernize the domestic industry,” Knupp says. “They were able to grow to supply some of that existing and new demand. Then, it opened the door for import opportunity of which the U.S. now has a large market share.”
She says this shows what can happen when the U.S. partners with another country in market development. The National Pork Board’s board of directors and the USDA will be traveling to Colombia in January.
“Our embassy in Bogota is hosting a forum on sustainability between the National Pork Board and Pork Colombia, where we will share respectively how we strategically look at the topic, what our farmers are doing, and talk about what we could do together to better share the sustainability of pork as a protein,” Knupp says. “Because if that message helps with global pork consumption, that’s an opportunity for everybody.”
How Can the U.S. Maintain its Edge?
The U.S. dominates the import pork market in Colombia. Experts agree the U.S. is well-placed to maintain that dominance. Still, challenges exist from both domestic pork production and from international suppliers, especially Chile and Spain, seeking a home for their surplus production, Gira notes.
U.S. suppliers need to cultivate relationships, maintain efforts to educate both consumers and the profession, and guarantee that U.S. pork is the default representative for new demands such as sustainability, animal health and lifestyle choices, the report says.
Here are four things for the U.S. pork industry to consider to improve export opportunities in Colombia:
1. Modernization: Colombia is well on its way to creating a modern pork sector that threatens to reduce the space for imports, unless Colombian pork consumption continues to grow at a robust pace. The U.S. should look for ways to not only increase U.S. market share, but to further communicate to consumers that pork is a high-quality, nutritious protein that contributes to a healthy lifestyle.
2. Product Differentiation: Traders are looking for ways to signal higher quality in their meat, Gira explains, as well as linking pork to a healthy lifestyle. For example, U.S. ribs are already considered a quality product, this could be translated to all U.S. pork with branding.
3. Sustainability: Although this is a high priority for major Colombian players, Gira says consumers aren’t there yet. In the meantime, U.S. exporters need to find ways to communicate their standards and show that products are compliant.
4. Frozen pork quality: The need to “break the myth of frozen meat” and persuade the market that modern freezing and defrosting techniques make frozen pork a competitive match for fresh or chilled pork in most situations, Gira explains. At the same time, U.S. exporters should consider exploring the market for chilled pork as logistics bottlenecks ease.
The outlook is promising in Colombia, analysts agree.
“Colombia will continue to import pork, and the U.S. will always be the most secure source of those imports. But with a growing domestic sector and increasing international competition, U.S. pork should look for new ways to communicate with this market and look for new market niches and product opportunities to maintain its edge,” Gira advises.
Request a copy of the report on porkcheckoff.org.
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