US pork exports set new value record in 2021

According to the US Meat Export Federation, US pork exports finished slightly below the record volume reached in 2020 but set a new value record, topping $8 billion for the first time. Pork exports trended lower in December, falling 17% from a year ago to 215,872 mt, valued at $604.3 million (down 12%). For 2021, export volume was 2.92 million mt, down 2% from the 2020 record, but export value still climbed 5% to a record $8.11 billion.

“Entering last year, we knew it would be a daunting task to match the record level of pork exports reached in 2020 because of the recovery in China’s swine herd and its rising domestic pork production,” said USMEF President and CEO Dan Halstrom. “But the US is less dependent on China than other major pork exporters, and this is definitely reflected in the 2021 results. Even with shipments to China falling nearly 30%, total US exports posted a very strong performance thanks to outstanding growth in Latin America and other key markets.

Mexico reclaimed its position as the leading volume destination for US pork in 2021, with exports climbing to a record 874,589 mt – up 27% from a year ago and eclipsing the previous (2017) record by 9%. Export value also set a new record at $1.68 billion, up 45% from a year ago and 11% above the 2017 record. While much of the US pork bound for Mexico is for further processing, the US industry has made significant gains in both the retail and foodservice sectors, with pork benefitting from more in-home preparation as well as increased availability through takeout and delivery services.

Led by strong growth in mainstay markets Honduras and Guatemala, as well as larger shipments to Panama, Costa Rica, El Salvador and Nicaragua, pork exports to Central America increased 41% to a record 139,741 mt. Export value was also record-high at $376.1 million, up 56%.

Pork exports to Japan have achieved steady growth since regaining a level tariff playing field at the beginning of 2020 through the US-Japan Trade Agreement. In 2021, exports increased 2% to 394,492 mt, valued at $1.69 billion – up 4% from a year ago and the highest since 2014. The US held the top supplier position for Japan’s chilled pork imports, with volume up 2% to 205,683 mt, valued at $1.02 billion.

After a very challenging year in 2020, pork exports to Colombia rebounded to record levels – surging 58% to 106,283 mt, valued at $257.9 million (up 76%). Similar to Mexico, shipments to Colombia are largely for further processing but US pork has a growing retail presence.

Fuelled in part by strong demand for chilled US pork, exports to Korea increased 6% to 167,012 mt and jumped 23% in value to $556.5 million. The US surpassed Canada as the top supplier of chilled pork to Korea, with volume up 132% to 10,036 mt, valued at $64.6 million (up 166%). US pork benefits from zero duties under KORUS and is capitalising on Korea’s strong retail demand.

Although shipments trended lower late in the year, pork exports to the Philippines still reached a record 78,639 mt, up 69% from 2020. Export value was $204.3 million, up 78%. Exports were bolstered by a temporary reduction in tariff rates as Philippine officials took steps to increase available pork supplies and stabilize prices in the aftermath of African swine fever (ASF) outbreaks in many regions of the country.

Pork exports to the Dominican Republic were already on the rise before ASF was confirmed in late July, and ASF’s impact on domestic production further heightened the country’s demand for US pork. Exports to the DR reached a record 58,722 mt, up 48% from a year ago, valued at $150.8 million – up 67%, also a new record.

While total exports to China/Hong Kong declined as anticipated in 2021, the region remains a critical destination for US pork variety meat. Combined muscle cut and variety meat exports to China/Hong Kong were down 29% from a year ago to 734,620 mt and value fell 27% to $1.74 billion, but variety meat exports increased significantly in both volume (328,974 mt, up 16%) and value ($810.4 million, up 22%). On a global basis, exports of US pork variety meat increased 11% from a year ago to 522,089 mt and set a new record for value at $1.24 billion (up 19%).

Pork export value equated to $62.86 per head slaughtered in 2021, up 7% from a year ago. Exports accounted for 29.4% of total pork production, up slightly from 2020. For muscle cuts only, the percentage exported was 26%, down from 26.5% in 2020.

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Tags: Production, record, China, exports, pork, markets, US