The United States pork industry is struggling in key export markets. However, it is embracing growth in other notable markets.
The U.S. Meat Export Federation (USMEF) reports United States pork exports to Central and South America, as well as the Dominican Republic remain strong. Jessica Spreitzer, USMEF trade analyst, says increased consumption has contributed to the growth in U.S. pork exports.
?Colombia, Guatemala and Honduras have actually had increasing pork production over the last 10 years. Colombia was up 144% in production. At that same time, their total pork consumption was up 198%. Looking at Guatemala, production was up seven-percent, but consumption was up 27%. In Honduras – Their production was up 27%, but consumption was up 75%. Even though we have growth in a lot of these markets, in their own production, consumption is growing so much faster that it?s giving the opportunity for the U.S. to fill that gap,? Spreitzer said.
Spreitzer says demographic trends are helping drive pork demand in these markets. However, she notes such opportunities would not be possible without key free trade agreements. The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and bilateral trade agreements with Chile, Colombia, Panama and Peru provide the United States pork industry access to these countries and help fuel strong growth in the U.S. market share.
?Pork is an affordable protein that is desirable for the diets in these markets. Also, we have urbanization and income growth trends. In the cities – consumers that are time poor, but now have higher incomes want those convenient processed pork products,? Spreitzer said. ?Looking specifically at Central America, the population has been growing well above the world trend for Guatemala, Honduras and Panama for the last 10 years and that?s expected to continue grow. The U.S. has (also) benefited from preferential duties with it?s free trade agreements.?
