U.S. pork's appeal has foreign buyers bellying up for more

AgExporter, June-July, 1996 by Nancy D. Morrison

This is a market, however, that still holds the basis for future growth. In fact, a slight upturn in U.S. pork exports to Mexico was seen in late 1995, particularly in the fresh/chilled/frozen sector, due to a shortfall in Mexican pork production. Prospects for this year are forecast to be favorable if, as expected, the economy continues to strengthen and incomes rise.

In Canada, the other NAFTA partner, the market for U.S. pork continues to grow, particularly in the area of fresh/chilled meat for further processing. This segment of the market has seen the greatest growth in the last 7 years, increasing an average of 33 percent per year.

The Canadian pork market is not unlike the U.S. market in that the best cuts are sold at premium prices, while lower value cuts are sold into the domestic market for further processing. It is because of this further-processing segment in Canada that the United States has been able to gain a foothold by offering higher quality cuts at lower prices.

A number of other markets are also growing in importance for U.S. pork, including Asian markets such as South Korea, Hong Kong and even Taiwan. South Korea was the fifth largest U.S. pork market in 1995, as U.S. exports surged to more than 12,000 metric tons, up 350 percent from 1994. Although a slight downturn is expected in the short run, the United States is expected to continue to gain market share in the Korean market.

The Korean market for U.S. pork products has developed as a result of the concessions made in the Uruguay Round and in bilateral negotiations during the last year. Stiff competition was provided by other major pork exporting countries in 1995, but the United States prevailed with a 30-percent market share due to the high quality associated with U.S. pork and competitive prices.

U.S. pork producers, processors and exporters are looking to these and other markets to provide the sales growth opportunities of the future as the industry continues to plan for expanded production. Given the steady rise in world pork consumption - up 33 percent over the last decade - and a world market increasingly open to trade, U.S. advantages in quality, availability and price bode well for future export prospects.

RELATED ARTICLE: Export Programs Boost Sales to Russia

Recent U.S. successes in the large Russian pork import market were facilitated by both the PL-480 Food for Peace program and the Export Enhancement Program (EEP). Initially, exporters encountered difficulty introducing U.S. pork products in the former Soviet Union, where both public and private sector buyers were unfamiliar with the quality, cuts and attractive prices of U.S. pork.

In 1992, USDA first made available an EEP initiative for 30,000 tons of U.S. pork carcasses to Russia to compete against subsidized pork coming out of Western Europe. However, this EEP allocation did not result in any sales because of trade impediments and the unfamiliarity of Russian trade officials with U.S. pork.

After the USDA's Food Safety Inspection Service resolved the apparent trade barriers, U.S. pork made another try at cracking the market. To assist in the effort, in late 1993 USDA provided $24 million worth of U.S. pork carcasses to the former Soviet Union as humanitarian aid under PL-480.