For the first time ever, Mexico came in as the No. 1 country for export value and export volume in 2022. Courtney Knupp, vice president of international market development for the National Pork Board, says this is a huge success story for U.S. pork because it’s proof carcass utilization and getting more value for each pig pays off.
Variety meats were a big winner as Knupp reflects on the 2022 export data. These non-traditional muscle cuts were worth $1.27 billion in 2022. To show the bigger picture, variety meats were $1.27 billion out of $7.7 billion in sales. About 1.8% of our total export volume are variety meats, so it’s a small quantity, high value.
“U.S. pork is viewed as a differentiated brand partly from Checkoff investment and adding value through carcass utilization,” Knupp says. “We’re just thrilled and have big plans and ambitions for 2023.”
Carcass utilization is a key profitability figure that needs more focus, says Bob Ruth, a National Pork Board member and Pennsylvania pork producer recently retired from Clemens Food Group. It may even be more important than pounds sold.
“Carcass utilization drives the profitability of our business much better than if we’re oversold on loins or bellies and that sort of thing,” Ruth explains. “We’ve got the other parts of the carcass that we’re not sold up on. I do believe we’re really more focused on carcass utilization now than we have been in the past, which is driving some of the value and helping the profitability in our business.”
Untapped Potential
Without international markets, these variety meats often don’t have demand in the U.S., explains Chad Groves, senior vice president of sales, marketing and innovation for Seaboard Foods and board member from Kansas.
“Those products typically end up going to rendering,” he says. “When compared to what Southeast Asia would pay for front and hind feet for example, that is a difference of $2 to $3 a pound compared to 30 cents per pound.”
Knupp says although traditional sales to China were down this year, China was purchasing a lot of variety meats.
“That was hugely valuable for us,” Knupp says. “It’s also a great way for these products to be an entry into markets, maybe lower income countries that are able to start purchasing protein to integrate into their diet. In countries like Asia, they’ll pay more for pork bung than they will for pork loin. It’s a cultural preference compared to what Americans traditionally think of as ‘normal.’ That’s why we have to assess each market as we have quite the offering of products to meet their needs.”
A True Sustainability Story
When people talk sustainability here in the U.S., they mostly talk about water usage, animal welfare and other aspects, but rarely do they talk about carcass utilization, Groves says. Carcass utilization is the ultimate story of sustainability.
“We owe it to those animals that we’re harvesting to get the best value that we can out of every single piece,” Groves says.
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U.S. Pork Trade Value: $61.26 Added to the Value of Each Hog Marketed
