Pork Exports May Reach Record

August 15, 2001

USDA's Foreign Agricultural Service predicts U.S. pork exports for 2001 will reach a record 700,000 tons (carcass weight equivalent), according to a special report published Tuesday. This would be an 18% increase from a year earlier -- the largest year-to-year increase in U.S. pork exports since 1998.

The record setting pace of U.S. pork exports thus far this year is due to larger sales to Japan, Canada and Mexico. USDA expects shipments to Japan to slow now as Japan's pork safeguard mechanism has been triggered by high import levels. Pork entering Japan through next March will face an additional 24% duty as a result.

Exports to Canada are up about 50% from last year. U.S. pork is filling a vacuum as Canada aggressively pursues foreign markets at the expense of its home market.

U.S. pork shipments to Mexico increased 30% during the first five months of 2001. USDA market analysts expect the Mexican market to become more competitive in the second half of this year as the U.S. and Canada both try to divert sales from Japan to Mexico.

The report also notes record imports of Canadian hogs coming into the U.S. -- 27%more in the first five months of this year. Sixty percent of these are feeder pigs, as more and more Midwest hog-feeding operations source Canadian feeder pigs. The full report may be viewed at: http://www.fas.usda.gov/dlp/highlights/2001/uspork07.pdf.