Duty-free access bolsters pork exports to Mexico
Despite retaliatory duties remaining in place, June also brought an encouraging rise in pork exports to China, which were the largest in more than three years.
Source: U.S. Meat Export Federation (USMEF)
via National Hog Farmer - Aug 05, 2019
U.S. pork exports were above year-ago levels in both volume and value in June and thanks to a rebound in Mexico and China, pork export value was the highest in 14 months.
According to data released by USDA and compiled by the U.S. Meat Export Federation, June pork exports posted double-digit gains in both volume and value, reaching 212,887 metric tons, up 11% year-over-year, valued at $569.2 million (up 12%). For the first half of 2019, pork exports remained 2% below last year in volume (1.25 million mt) and were down 6% in value to $3.14 billion.
Pork export value averaged $56.99 per head slaughtered in June, up 7% from a year ago and the highest monthly average since April 2018. First-half export value averaged $50.05 per head, down 9% from the same period last year. June exports accounted for 27.8% of total U.S. pork production and 24% for muscle cuts only, up from 25.8% and 22.4%, respectively, a year ago. For January through June, exports accounted for 25.8% of total pork production (down from 27.3%) and 22.4% for muscle cuts (down from 23.6%).
On May 20, the 20% retaliatory duty on most U.S. pork exports to Mexico was removed as the U.S., Mexico and Canada reached an agreement on steel and aluminum tariffs. Entering Mexico duty-free for the first time in nearly a year, June exports to Mexico were the largest since January at 59,837 mt (steady year-over-year), while value climbed 13% to $119 million – the highest since April 2018.
“It’s a tremendous relief to have Mexico’s retaliatory duties on U.S. pork behind us, as the June bump in export value clearly illustrates,” says USMEF president and CEO Dan Halstrom. “Now the goal is to get back to the record-setting trend the U.S. industry established in Mexico from 2012 through 2017, prior to the metal tariff dispute. USMEF’s marketing programs have ramped up in Mexico so that we can recapture lost market share and regain momentum in this critical market for U.S. pork.”
Despite retaliatory duties remaining in place, June also brought an encouraging rise in pork exports to China, which were the largest in more than three years at 41,704 mt (up 123% year-over-year)...