Chile

Chilean Smokehouse and Retail Chains Embrace U.S. Pork: Spareribs and Bacon-Wrapped Loin Gain Popularity

Fri, 07 Jul 2023 11:31:53 GMT

This year, U.S. pork exports to Chile have rebounded, increasing 30% through April year over year, reports the U.S. Meat Export Federation.

According to Sebastian Gré, a professional chef who also serves as the USMEF program coordinator in Chile, recently shared insight to pork industry leaders regarding promotional efforts that are advancing U.S. pork’s presence in the Chilean retail and foodservice sectors, USMEF reports, which is supported by the National Pork Board and the USDA Market Access Program.

Specifically, bacon-wrapped U.S. pork loin in the Lider and Tottus supermarket chains and small retail shops has been the focus of the retail campaign.

Gré says the specialty product was first introduced into the supermarket chain, Lider, which has 140 total stores and is operated by Walmart, in December of last year.

“We did a marketing campaign with [Lider] in 20 stores with samplings, and due to the great success that the product had, they will be introducing the product to another supermarket—Tottus, a very big supermarket in Chile. It has 41 stores all over the country. They will be also introducing [the bacon-wrapped U.S. pork loin] to some small retailers to see how it works,” Gré explains.

Additionally, U.S. pork is gaining traction in the foodservice industry, USMEF reports. Specifically, spareribs have become quite popular since being featured at Curacaribs, a well-known Chilean smokehouse restaurant.

“Chile’s becoming more and more obsessed with smoking pork, smoking a lot of things. So, during September of last year in Espacio Food Service, which is a food show in Chile, we met with a smokehouse called Curacaribs, and they were looking for U.S. pork because they wanted to have something different at the restaurant,” Gré explains.

After putting the restaurant in contact with importers, the company now features U.S. pork spareribs in their restaurants and highlights the offering through their 150,000+ social media following, Gré adds.

Visit CuracaRibs on Instagram to see how they highlight U.S. pork:

View this profile on Instagram CuracaRibs (@curacaribs) • Instagram photos and videos

Chile: A Demanding Pork Export Market That Knows What It Needs

Thu, 08 Dec 2022 13:43:52 GMT

Despite strong growth in both production and imports, total pork consumption in Chile has fluctuated at the same level over the last decade, and fallen in per capita terms, Gira writes in its latest report on Chile in a series initiated by the National Pork Board that’s focused on differentiation of U.S. pork in key international markets .

Why? Despite positive demand factors in population growth and economic development, exports of pork continue to keep the market short, the report says.

“Chile’s pork sector is modern, highly consolidated and export-oriented, factors that U.S. exporters should bear in mind. Export replacement is a major function of the import market, leading to big up-and-down swings in import demand, as it backfills for fluctuating exports,” the report says.

Because slow economic and consumption growth are expected in the mid-term, demand for imported pork will continue to depend on the success of Chile’s pork exports, Gira points out.

“Chile will continue to need imported pork, with volumes depending on Chile’s exports to China. Buyers will remain focused on price, especially for further processing, and will trust their relationships inside companies. Economic and currency stabilization will help here. The U.S. is well positioned to supply Chile’s frozen pork market and provide volume at consistent quality. Brazil is the main competitor, but the overall U.S. value proposition is superior in the long term,” Gira summarizes.

Here are five things for the U.S. pork industry to consider to improve export opportunities in Chile:

1. Price. Price is a reigning criterion as one would expect. However, Gira says it’s reinforced in Chile’s case by two factors: much of the import market goes to processors, who are especially price-conscious; and because much of the demand is for backfill imports, they must be much cheaper than Chile’s export products. Unfortunately, price is something U.S. exporters can’t control – since inflation and the USD/CLP exchange rate are key factors.

2. Relationships. Personal contact with a named individual is of high importance to Chileans and has helped expand their trade in Asia. This is one the most important aspects in the trade today (once price and quality known), as Chilean buyers usually have a closed pool of suppliers, Gira explains.

“Building relationships will help support U.S. sales initiatives. This will require a consistent account manager who deals with specific people in Chile, an online portal if possible, for tracking shipments and document transfer and attending conferences, sponsoring U.S. visits,” the report says.

3. Speed. Although Brazil’s speed advantage is unbeatable, it’s important for U.S. suppliers to reduce time lags regardless.

“The industry is unanimous that U.S. provides better quality, and a substantial reduction in timing would help make the time-to-market issue less important,” Gira says. “Container and shipping backlogs appear to be easing, so that should help; U.S. suppliers can help by speeding the sequence from order to production to U.S. port of embarkation.”

4. Services. Gira found that importers are prepared to pay for high quality pork depending on the country of origin, the cut needed and the additional services negotiated. Services, including labeling, packaging control, order traceability, etc., will differentiate the offer in the future and lock buyers to U.S. exporters.

5. Sustainability. It may not be a high priority now, but Gira believes it will be in the next three to five years. U.S. exporters will have to develop recyclable packaging (not just for Chile), and demonstrate commitment to traceability, environmental impact and animal welfare. This is an opportunity for the U.S. to get ahead of the game by being first-to-market with credible support for these kinds of claims.

“You have to compete on the strengths of the U.S. industry – the quality, consistency, and all the things that go behind that, whether that’s sustainability or whether that’s the fact that you supply the right product at the right time and do more effort around that to hold market share,” says Rupert Claxton, meat director at Gira. “It’s not just about having a very cheap product that you can push into the market, but encouraging that market to want to pull it.”

Request a copy of the report on porkcheckoff.org.

Learn more:

Colombia and Chile Offer Untapped Potential for U.S. Pork Industry

U.S. Pork Export Growth Potential Found in Robust Chile Market

Tue, 30 Aug 2022 19:57:17 GMT

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.