News

Rebuilding pork consumption in key markets crucial to export growth

China’s demand for pork has moderated and many economists have expressed concern that will lead to lower pork prices.

But, US Meat Export Federation economist Erin Borror says there’s an opportunity to rebuild pork consumption in other parts of the world.  “There are big opportunities in Mexico, and also in Central and South America, and the Dominican,” she says. “Places where we’re seeing current growth, there’s still growth potential.”

She says the US has a competitive advantage over Europe in those countries. “When China slows down we know European pork will show up in those other markets, as was the case when Russia closed to Europe,” she says.  “We have big growth potential in the Western Hemisphere which is harder for Europe to compete in.  That’s our backyard and where we compete best.”

Of the major pork exporting countries, Borror says the US is the least reliant on exports to China and that puts the US pork industry in a much better position than its competitors.

The share of the US pork production exported to China peaked at 8%, while countries like Chile recently shipped more than 40% of its total pork production to China and Brazil at 20%.  As much as 34% of Canada’s pork production and 14% of Europe’s were exported to China.