Weekly Product Updates

W41: Pork Update

Frozen Pork Ham & Shoulder
Published Oct 20, 2023

In W41 in the pork landscape, in 2023, Mexican meat exports to the United States (US) experienced a consistent decline, with a reduction of 8.9% by W40. However, there was a slight recovery by the end of this period. Mexican pork exports to the US increased by 40% between W39 and W40, reaching 791 tons. For more than eight months, Mexico has exported a total of 33.32 thousand tons of pork to the US. It's worth noting that throughout the year, the US reduced its import of pork from abroad by 20%, amounting to 332.79 thousand tons, primarily due to reduced purchases from its top 10 suppliers. Denmark and Poland experienced the most significant drop in sales, with each country seeing a 60% reduction compared to the previous year, resulting in volumes of 14.55 thousand tons and 6.84 thousand tons, respectively.

Brazilian pork exports in Sep-23 reached 112.2 thousand tons, marking a 9.2% increase from the same period in 2022. In terms of revenue, exports amounted to USD 244.7 million, a 0.2% rise compared to Sep-22. For the year-to-date (January to September), pork exports totaled 920.1 thousand tons, indicating an 11.4% increase from the same period in 2022. There was a notable 16.7% growth in revenue, reaching USD 2.160 billion in 2023, compared to USD 1.851 billion in the first nine months of 2022.

China remained the primary export destination, followed by Hong Kong, the Philippines, Chile, and Singapore. Mexico also emerged as a significant importer of Brazilian pork, with more than 5 thousand tons imported in Sep-23. Santa Catarina led Brazil's main pork exporter, followed by Rio Grande do Sul, Paraná, Mato Grosso, and Mato Grosso do Sul. New destinations like Canada and the Dominican Republic also showed promising growth in pork imports from Brazil.

Paraguay experienced a remarkable surge in its pork product exports in terms of volume and income between Jan-23 and Sep-23. Records show that 5.12 thousand tons of exported pork and by-products, generating USD 12.8 million in revenue, marking a significant increase of 148% in quantity and 216% in foreign currency compared to the same period in 2022. The robust performance in exports is due to a high international market demand. The main destinations for Paraguayan pork products include Taiwan (54%), Uruguay (28%), Georgia (15%), Brazil (2%), and Angola (1%).

Pork production in the European Union (EU) has declined by over 8% from Jan-23 to Jul-23 compared to the same period in 2022, marking the second consecutive year of production decline. The EU is forecasted to end 2023 with a 6.6% decrease in pig meat production, mainly due to lower production in key countries like Germany, Denmark, Spain, and the Netherlands. This drop is due to reduced slaughter levels following record-low pig counts. As supplies have decreased, prices initially rose, but demand easing has led to a price drop. In addition, EU pork imports have fallen, indicating a decrease in overall demand, largely influenced by consumers facing cost of living challenges. The European Commission predicts a 5% decrease in per capita pork consumption in 2023. Exports of pig meat from the EU have also declined significantly, with the export capacity falling by 16% and drops in exports to Asian countries such as the Philippines, China, South Korea, and Japan.

Lastly, China is reopening its borders to pork imports from Russia, but with the condition that only meat from areas free of African swine fever can be exported. Several formalities must be addressed before Russia can begin pork exports to China, so the first shipments are anticipated in the second or third quarter of 2024. Despite China's strong demand for imported pork, European exporters are losing market share due to their inability to compete with North American and Brazilian suppliers on price. In the first half of 2023, China imported 13% more pork compared to the same period in 2022.

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