Source: Rita Jane Gabbett, MEATINGPLACE, 8/19/16

Second-quarter U.S. pork exports to six of the 10 most important foreign destinations decreased compared to a year ago, according to USDA’s latest Livestock, Dairy and Poultry Outlook report. However, the agency expects exports to rebound in the third and fourth quarters.

U.S. pork exports totaled 1.32 billion pounds in the second quarter, down about 1 percent lower than a year ago. Exports (by volume) declined to Mexico, Japan, South Korea, Australia, Colombia and the Dominican Republic, while increasing to Hong Kong/China, Canada, Honduras and the Philippines.  

The exchange rate value of the U.S. dollar remains the most likely factor dragging exports down, according to USDA. Price-sensitive markets such as Mexico are particularly vulnerable to the higher valued U.S. dollar. So far in 2016, the dollar has appreciated by more than 14 percent against the Mexican peso compared to the average values in 2015. Second-quarter U.S. pork exports to Mexico are 3.6 percent lower than a year ago.

U.S pork exports to China, so far in 2016, are helping to offset lower shipments elsewhere. In June, U.S. shipments to China—58 million pounds—where almost two-and-a-half times greater than a year earlier. Second-quarter exports to China were more than double the same period last year. China\Hong Kong is now the third largest foreign buyer of U.S. pork. Recent forward export sales data, however, suggest slower shipments to China since June.

Rebound predicted
As the U.S. pork industry enters the period of accelerated seasonal production, it is likely that ensuing lower product prices will help support foreign import demand for U.S. pork, USDA predicted.

Third quarter pork exports are expected to be nearly 1.3 billion pounds, almost 9 percent greater than the same period a year ago. In the fourth quarter, U.S. pork exports are expected to be 1.4 billion pounds, more than 10 percent higher than the same period a year ago.

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