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USMEF: Pork trends lower in June

Pork

June pork exports were lower year-over-year, shipments through the first half of the year remained ahead of the record value pace of 2023, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Posted on Aug 13 ,00:20

June pork exports totaled 224,392 mt, down 9% from a year ago and the lowest since September, while export value fell 5% to $659.7 million. However, January-June volume still reached 1.52 million mt, 3% above the first half of 2023, while export value increased 5% to $4.26 billion.

"June was a slower month in a few of our key destinations for U.S. pork, including Mexico and Colombia, where exports have been on a blistering pace and buying accelerated again in July", said USMEF President and CEO Dan Halstrom. "But June was another terrific month for U.S. pork in Korea, where exports could be record-large this year. Shipments also trended higher year-over-year to Central America and Canada, and it was encouraging to see export value per head slaughtered hold firm in the $66 range".

June pork exports lower, but bright spots include Korea, Central America, Caribbean

Pork exports to leading market Mexico cooled modestly in June, with volume down 3% from a year ago to 83,007 mt. But export value still edged higher, increasing 4% to $187.4 million. January-June exports to Mexico remained well ahead of last year’s record pace, up 6% in volume (563,200 mt) and jumping 13% in value to $1.2 billion. Mexico’s domestic hog price surged last month, and weekly export data suggest U.S. pork exports to Mexico also accelerated in July.

Mexico suspended imports of all Brazilian poultry in mid-July following a finding of Newcastle virus, which contributed to high poultry and turkey prices in the market. In early August, Mexico resumed imports of Brazilian poultry from all states except Rio Grande do Sul.  

Korea’s demand for U.S. pork remained very robust in June, with exports climbing 20% from a year ago to 17,327 mt, while export value increased 30% to $64.2 million. January-June exports to Korea soared 33% above last year’s pace at 135,419 mt, while value was 38% higher at $459.6 million (by comparison, when pork export value to Korea peaked in 2018, the first-half value total was $386.5 million). The U.S. industry has capitalized on higher pork consumption in Korea but is also capturing larger market share. U.S. share of Korea’s imported pork market climbed from 26% in the first half of 2022 to 38% this year.

Fueled by gains in Honduras and Costa Rica and a steady performance in Guatemala, June pork exports to Central America totaled 10,371 mt, up 2% from a year ago. But export value increased impressively, climbing 14% to $34.3 million. Through the first half of the year, exports to the region increased 21% from a year ago to 74,532 mt, while value soared 31% to $231.1 million. First-half exports increased year-over-year to all Central American markets and shipments to Honduras, Guatemala, Costa Rica, El Salvador and Nicaragua were on a record pace.  

Other January-June results for U.S. pork exports include:

• June pork exports to the Caribbean increased 14% from a year ago to 8,408 mt, while value climbed 19% to $25.8 million. Despite heightened competition from Brazilian pork, June exports to the Dominican Republic increased 11% from a year ago to 6,280 mt, valued at $18.4 million (up 17%), while exports to Cuba nearly quadrupled to 824 mt. Through June, exports to the Caribbean were 3% below last year’s record pace at 63,691 mt, with value steady at $183.4 million. 
• Following several months of strong gains, pork exports to Colombia took a step back in June, falling 17% from a year ago to 7,612 mt, while value dropped 7% to $22.2 million. But shipments to Colombia remained on a record pace through June, climbing 33% year-over-year in volume (56,927 mt) and jumping 44% in value ($157.5 million). Weekly export data also indicate shipments rebounded in July, after slowing in part due to market access uncertainty related to storage condition labeling.
• Pork exports to Canada reached 17,226 mt in June, up 3% from a year ago, while value increased 9% to $72.7 million. This pushed first-half export volume even with last year at 102,702 mt, while value increased slightly to $410.4 million.
• Malaysia continues to emerge as a promising destination for U.S. pork, with June exports up 24% from a year ago to 576 mt, valued at $1.8 million (up 18%). January-June exports to Malaysia increased 50% to a record 4,065 mt, while value climbed 43% to $12.6 million. The U.S. industry received good news last month when an additional U.S. pork plant was approved for export to Malaysia without the need for an on-site audit, which could clear the way for an increased U.S. presence in the market.
• With the persistently weak yen making Japan a more price-sensitive market, pork exports to Japan took a step back in June. Shipments fell 12% from a year ago to 28,498 mt, while value was down 10% to $118.7 million. January-June exports to Japan were down modestly from a year ago, falling 3% in volume (181,550 mt) and 2% in value ($737 million). The Bank of Japan’s recent interest rate increase and signals of a possible U.S. rate cut in coming weeks provided some positive movement for the yen, which has strengthened from 160 per U.S. dollar in mid-July to around 145 this week. Inventories of imported pork at the end of June were down 14% from last year, signaling the potential for larger imports in the second half of the year.
• Pork export value equated to $66.53 per head slaughtered in June, up slightly from a year ago. The January-June average was $66.54 per head, up 4% from the first half of 2023. Exports accounted for 29.4% of total June pork production and 25.4% for muscle cuts only, down from the very high year-ago ratios of 31% and 26.6%, respectively. For January through June, exports accounted for 30.5% of total production (up from 29.9% a year ago) and 26.3% for muscle cuts (up from 25.6%).

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