No one can argue the ability to export “more” of the pig to more places around the world is important. Nebraska pork producer Bill Luckey says the work being done by the National Pork Board and the U.S. Meat Export Federation (USMEF) and others to diversify these export opportunities around the world is extremely valuable to him as a pork producer.
“It’s hard to be in all places at all times,” Luckey explains. “USMEF has staff around the world in key export markets for us. They’re able to be ‘in market’ all the time. One of the things that we have to remember is, in a lot of these markets, we need to have an established relationship. That doesn’t just happen overnight with a one-time activity. It takes repetition, getting to know the customer and getting them to know us.”
Being able to export to more than 100 countries is a substantial base to start from, he points out.
“We’re always looking to add more countries to that number. I like to see the ability to ship around the world. That’s going to help me have a more consistent price, hopefully,” Luckey says.
Why Diversification Counts
Diversification has been a key focus for the National Pork Board – diversification not only of export opportunities, but also product offerings.
“Offal product or variety meats is a very important segment,” Luckey says. “In the U.S., those products would have a very low value, but if we can export it to another country where there’s a different understanding of the product, all of a sudden it has a great deal of value.”
Diversifying the mix of products sold into a country is also a critical way the pork industry seeks to gain export momentum.
“For example, if we are exporting one particular cut to a country, it’s a lot better to diversify those cuts, so there’s a variety of cuts,” Luckey says. “If we have a lack of something, we can substitute it and get another product in there without disrupting the flow of product into the country. We always want to be a reliable supplier of pork.”
Despite domestic demand challenges, exports have seen “very good momentum” so far in 2023, says Courtney Knupp, National Pork Board vice president of international market development.
“We have seen very strong demand from our partners in the Western Hemisphere, and the reemergence of demand from Southeast Asia, which is great to see because they’ve been a little quieter the past couple years with the impact of COVID,” Knupp says. “We still aim to differentiate our markets and differentiate U.S. pork from pork of other origins.
We’re watching production trends in the global pork trade closely. As the Europeans scale back their production and their presence in some of our key markets, we’re excited to regain momentum.”
A Deep Dive into Opportunities in Central America
These are some of the reasons why the National Pork Board works to provide insights to the export community in tandem with the USMEF, and independent third-party consultants like GIRA. Over the last four years, they’ve studied markets in the Western Hemisphere and Southeast Asia. At the World Pork Expo, they rolled out the Central American countries, which encompasses seven countries in the CAFTA-DR Free Trade Agreement and the U.S.-Panama free trade agreement.
“We have close proximity to them,” Knupp says. “We have a large market share, and we have a lot of opportunity not only to grow consumption, but to continue to be the leading supplier.”
In general, Knupp says the perception of the U.S. is very strong in this region. Central America appreciated the good production practices in the U.S., and certification programs like Pork Quality Assurance Plus. They also share a mutual interest in foreign animal disease prevention.
“It’s not just establishing new markets, but it’s making sure we retain the markets we’re in right now. It’s making sure we can meet the demands or needs of those importers to make sure we’re a reliable source for them and can prove that we’re going to be there for them next year also,” Luckey says.
Read More:
