A robust processing industry and strong incomes make Chile an optimal market for growth in U.S. pork imports.
Missouri pork producer and board member of both the National Pork Board and U.S. Meat Export Federation (USMEF), David Newman, recently returned from a tour of the country’s shipping, processing, production and retail industries.
The Chilean ag industry is very advanced, has good production systems in place and the processing capability there is tremendous, Newman says.
Opportunity lies in fresh U.S. pork, especially trim items or primal cuts, as well as ribs to accommodate the needs for their heavily processed items and retail market.
“[Chile] ranks in the top three in the Western Hemisphere, the United States, Canada and Chile, in terms of average income per person. So, the spending power is there to purchase middle meats and to purchase for the processed meats,” Newman notes.
With the country’s high reliance of imported grain to raise its own livestock, 100% of corn and nearly 75% of soybean meal, the U.S. is able to provide meat at a lower cost to Chilean consumers.
“Look at the opportunities, if we can get some of these shipping and logistical issues out of the way, it does provide an opportunity in multiple markets for U.S. products on a cost standpoint,” Newman explains.
U.S. pork provides additional advantages in the market, including safety and quality, to Chilean consumers, USMEF reports.
