Are there any other major North American pork exporting countries?

Canada is the world’s 6th largest exporter of pork.

New barns, improved fertility, and reduced morbidity will contribute to an expanded swineherd in 2020 and hence an increase in exports. Canadian pork prices saw prices similar to the US products but witnessed a higher peak of USD 2.91/KG in January. Exports for April were up 17% in terms of value and volume.

Production 

The majority of pigs in Canada are raised in indoor barns where the producer can control the feed, temperature, lighting, and ventilation. Females will normally have anywhere from 11 to 13 pigs per litter. With a sow being able to farrow close to three times a year, one sow can have around 36 piglets in one year. This makes it possible for pork production to occur year-round. Virtually all commercial pork production in Canada takes place in a controlled environment which implies that, at all times of the year, animals are kept in buildings specialized for farrowing and growing. The most common hog production unit today is a specialized farrow-to-finish operation of 200 to 250 sows, which can be managed efficiently by a single family.

Farrow-to-finish significantly reduces productivity losses associated with the stress of movement, adaptation to new environments, changing feed regimes, and transmission of diseases. In addition, producers can effectively monitor the performance of animals until they reach maturity. A strong infrastructure is in place and working in Canada to coordinate the ongoing program of swine improvement. In 1984, Canada introduced sow productivity and management systems and for the last three years, sow productivity improved 11 % compared to many other leading pork-producing countries (1% to 2%).

Pork Industry in Canada 

Canadian pork is usually offered for sale in the form of primal cuts, generally consisting of the butt, picnic, belly, loin, and leg. It is usually leaner than U.S. pork and the Canadian style of cutting differs somewhat from the U.S., particularly in the loin and shoulder cuts. A Canadian Pork Buyers' Manual can provide detailed information as to trimming and more specialized cuts.

Approximately 50% of all Canadian pork is further processed into cooked and cured products. Canada’s competitive pork prices and advanced processing technology make it possible to efficiently produce bacon, ham, and sausage products, in addition to the development of a wide variety of specialty pork products.

Canadian pork products are usually sourced directly from packers or through one of several experienced trading houses. The product is usually offered at the East or West Coasts, which are both well-serviced with refrigerated container service. For North American consumers, the product is generally offered in refrigerated truckload lots.

Chilled or frozen pork is normally offered in trucks or container lots, weighing approximately 18MT. The usual practice is for products to be quoted for prompt or nearby shipments in single or multiple load quantities. Long-term, fixed pricing is not common as there are no export subsidy programs.

In order to increase domestic pork consumption, the Canadian pork industry has recently implemented a marketing strategy that allows suppliers to directly reach consumers through advertising and recipe dissemination, and indirectly via influential channels such as the media, health professionals, retail, and foodservice sector. The campaign stresses the leanness, wholesomeness, and versatility of Canadian pork. At the retail level, programs have been developed to increase the number and variety of pork cuts, particularly new value-added cuts. New presentation and merchandising techniques have also been implemented which significantly increase pork sales and profitability.

Related Trade Agreements Canada has several free trade agreements with countries around the world. Issues or potential trade issues affecting the pork industry are as follows: the renegotiation of the North American Free Trade (NAFTA) agreement which was held in November 2018 (USMCA) effective July 2020 and the US's tariff war with both Mexico and China which had negative effects on the Canadian pork industry.

Export Trends

Canada has well-established agriculture and agri-food industry with long-standing success in the global marketplace. Pork production is a vital component of Canada's agricultural economy (CAD 24 billion). Canada has an advantage in producing pork with its stable grain production, allowing for selective, controlled feeding and reasonable feed costs. Canada enjoys a good reputation for its pork products with the quality of the products determined by whether it is lean, high-yielding, wholesome, and meets buyers' specifications.

In April 2019, the Minister of Agriculture and Agri-Food announced an investment of over CAD 6 million to help the Canadian pork industry harness innovation to boost production, strengthen public trust, and expand markets for Canadian pork domestically and internationally. In 2018, Canada’s pork exports amounted to over CAD 4B (USD 3.04) with the top pork export markets being Japan, the United States, China, Mexico, and South Korea.

The main exporting countries for Canada are Japan, the US, China, Mexico, and South Korea. China is a very important market for Canadian producers. In 2018, Canada’s pork exports were almost CAD 4 billion, of which CAD 514 million was exported to China, making it our third-largest export market. Between January and November 2019, 255,290 MT of Canadian pork was shipped to China, worth CAD 507,200,488. Currently, exports to China are up 44% YTD.

Alternate market opportunities in Asia are expected to support sustained export growth as well as expansions in exports to Japan and South Korea. As ASF continues to impact the region, demand from Asia will support increased pork exports in 2020 and supplement the deficit created by a loss of local production.

The Comprehensive and Progressive Transpacific Partnership (CPTPP) entered into effect for Canada, Australia, Japan, Mexico, New Zealand, and Singapore on December 30, 2018. Japan was also one of the first six to ratify the CPTPP and Canadian pork exports have subsequently seen two tariff reductions to the country. The ad valorem duty will fall from 2.2 percent to 1.9 percent on April 1, 2019, and will eventually reach zero in 2027. The EU market for Canadian pork has seen slow growth since the CETA implementation but, as marketing efforts progress and resolutions for non-tariff barriers are reached, it is expected to continue growing in 2020. Vietnam ratified CPTPP in January 2019 with tariffs being eliminated for fresh/chilled and frozen pork within nine years. The United States continues to be the dominant export market for Canadian beef and pork products. Canadian exports of feeder swine to the United States will increase slightly following the 2019 decline as a result of the Porcine Epidemic Diarrhea Virus (PEDv). In addition, the recent United States-Mexico Canada Agreement will have Canada working towards expanding its exports to Mexico as well.