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February US pork exports reached 273,056 metric tons (mt), up 46% from a year ago, valued at $726.6 million (up 59%), trailing only the volume and value totals from December 2019 and January 2020. For the first two months of the year, pork exports exceeded last year’s pace by 41% in volume (546,659 mt) and 54% in value ($1.47 billion).
Pork export value per head slaughtered was $67.77 in February, up 50% from a year ago and the highest since 2014. Exports accounted for just under 33% of total February pork production and nearly 30% for muscle cuts only, the highest on record and up substantially from last year (24% and 21%, respectively).
February exports to China/Hong Kong were even with the huge January volume and more than tripled from a year ago to 98,847 mt, while export value more than quadrupled to $243.2 million. For the first two months of 2020, exports increased 260% from a year ago to 195,849 mt and soared by 352% in value ($488.5 million).
Pork exports to Japan totaled 35,262 mt in February, an increase of 23% year-over-year, while value climbed 28% to $145.8 million. Through February, exports increased 9% in volume (66,840 mt) and 12% in value ($278.4 million). Capitalizing on reduced duty rates, U.S. pork is regaining market share of Japan’s imports of ground seasoned pork and chilled pork.
In Mexico, February exports climbed 16% to 61,693 mt, while value increased 43% to $107.6 million. January-February exports to Mexico increased 11% in volume (132,153 mt) and 41% in value ($242.3 million) from the same period last year, when most U.S. pork entering Mexico was saddled with a 20% retaliatory duty. Although weekly export data show March volumes to Mexico remained sharply higher year-over-year, the pace slowed from that seen in February, partly reflecting devaluation of the peso.
NOTES:
Export statistics refer to both muscle cuts and variety meat, unless otherwise noted.
One metric ton (mt) = 2,204.622 pounds.
U.S. pork currently faces retaliatory duties in China. China’s duty rate on frozen pork muscle cuts and variety meat increased from 12% to 37% in April 2018, from 37% to 62% in July 2018 and from 62% to 72% on Sept. 1, 2019. The rate on pork cuts was reduced to 68% on Jan. 1, 2020, through a reduction in the most-favored-nation (MFN) rate and to 63% on Feb. 14, 2020, through a reduction in the Section 301 retaliatory duty. The duty on pork variety meat was reduced to 67% on Feb. 14.
In February 2020, China announced a duty exclusion process that allows importers to apply for relief from duties imposed in response to U.S. Section 301 duties. When an application is successful, the rate for U.S. pork can decline to 33% for muscle cuts and 37% for pork offal (the 25% Section 232 retaliatory duty on U.S. pork remains). Some importers reported receiving duty relief beginning on March 2, 2020.
Mexico’s duty rate on pork muscle cuts increased from zero to 10% in June 2018 and jumped to 20% the following month. Beginning in June 2018, Mexico also imposed a 15% duty on sausages and a 20% duty on some prepared hams. Mexico removed all duties in late May 2019.
April 3, 2020/ USMEF/ USA.
https://www.usmef.org/
