Honduras Sets Pace as Pork Exports to Central America Reach New Heights
Published: Jan 31, 2013
With an expanding middle class, maturing retail and foodservice sectors and improved market access achieved through free trade agreements, Central America is one of the fastest-growing destinations for U.S. pork. Through November, 2012 pork and pork variety meat exports to Central America reached 43,906 metric tons (mt) valued at $101.9 million. When December results are in, USMEF projects year-end totals to reach 48,000 mt valued at $111 million. The region’s previous records were 41,765 mt in 2010 and $101.6 million in 2011. Just five years ago (2007), exports to Central America totaled only 23,652 metric tons valued at $45.87 million.
For several years Honduras has been this region’s mainstay market, often cracking the top 10 list of global destinations for U.S. pork.
“From an educational standpoint USMEF has worked closely with importers in Honduras for a number of years, especially in new product development,” said Gerardo Rodriguez, USMEF director of trade development for Central America and the Dominican Republic. “We have shown them viable ways to use U.S. pork in traditional Honduran cuisine, taking advantage of the quality and consistency of the U.S. product, not only at retail but also in foodservice.”
Through November 2012, exports to Honduras were steady in volume with the previous year at 17,983 metric tons and dipped 5 percent in value to $41.47 million, but other Central American markets grew as follows:
Volume Value Guatemala 11,925 mt, +25 percent $26.4 million, +22 percent Panama 7,374 mt, +42 percent $16.3 million, +33 percent El Salvador 2,541 mt, +36 percent $6.58 million, +29 percent Costa Rica 2,344 mt, +15 percent $6.64 million, +19 percent
In Nicaragua, export volume and value decreased slightly to 1,116 metric tons (-2 percent) and $3.2 million (-3 percent). In Belize, volume increased 23 percent to 623 metrics tons and value was steady at $1.26 million.
“Panama is one of our most exciting markets for the coming year,” said Rodriguez. “With the new free trade agreement in place we see tremendous opportunities, especially since importers used to pay 70 percent tariffs on U.S. pork. This year we have a 1,600 metric ton tariff-free quota, a tremendous advantage over our competition and an excellent opportunity to expand the market.”
In addition to the quota on muscle cuts, tariff-free quotas were also created for bacon, cured hams and pork fat (636 mt) and for some prepared items including deli ham and pre-cooked bacon (318 mt). The quotas increase annually until U.S. pork is tariff-free in the 15th year of the agreement.
Even with pre-FTA duty rates in effect for most of last year, exports to Panama through November reached nearly $14 million, making Panama the 17th largest value market for U.S. pork. USMEF projects that these market access improvements could boost annual U.S. pork and pork variety meat exports to Panama over $30 million by 2016.
Rodriguez explained that prospects in Guatemala are also promising in 2013, especially within the country’s rapidly maturing retail sector. Guatemala is Central America’s most populous country (about 13.8 million) and a well-established market for U.S. pork
“Guatemala offers an excellent growth opportunity, especially in the projects we're conducting with several different retail chains,” he said. “Until just a few years ago, only 20 percent of the population in Guatemala shopped in modern supermarkets. But that percentage has risen dramatically in recent years, giving USMEF an excellent venue to showcase the quality of U.S. pork and really differentiate our product.”
Though the markets are smaller in scale, Rodriguez also sees further market development potential in El Salvador and Costa Rica – making the region a diverse and worthwhile target for U.S. exporters exploring new opportunities.
“Even with the recent strides U.S. pork has made in Central America, there is plenty of room for growth,” he said. “The way this market is maturing and the customer base is expanding, it’s a very promising region for a wide range of U.S. pork products.”
For several years Honduras has been this region’s mainstay market, often cracking the top 10 list of global destinations for U.S. pork.
“From an educational standpoint USMEF has worked closely with importers in Honduras for a number of years, especially in new product development,” said Gerardo Rodriguez, USMEF director of trade development for Central America and the Dominican Republic. “We have shown them viable ways to use U.S. pork in traditional Honduran cuisine, taking advantage of the quality and consistency of the U.S. product, not only at retail but also in foodservice.”
Through November 2012, exports to Honduras were steady in volume with the previous year at 17,983 metric tons and dipped 5 percent in value to $41.47 million, but other Central American markets grew as follows:
Volume Value Guatemala 11,925 mt, +25 percent $26.4 million, +22 percent Panama 7,374 mt, +42 percent $16.3 million, +33 percent El Salvador 2,541 mt, +36 percent $6.58 million, +29 percent Costa Rica 2,344 mt, +15 percent $6.64 million, +19 percent
In Nicaragua, export volume and value decreased slightly to 1,116 metric tons (-2 percent) and $3.2 million (-3 percent). In Belize, volume increased 23 percent to 623 metrics tons and value was steady at $1.26 million.
“Panama is one of our most exciting markets for the coming year,” said Rodriguez. “With the new free trade agreement in place we see tremendous opportunities, especially since importers used to pay 70 percent tariffs on U.S. pork. This year we have a 1,600 metric ton tariff-free quota, a tremendous advantage over our competition and an excellent opportunity to expand the market.”
In addition to the quota on muscle cuts, tariff-free quotas were also created for bacon, cured hams and pork fat (636 mt) and for some prepared items including deli ham and pre-cooked bacon (318 mt). The quotas increase annually until U.S. pork is tariff-free in the 15th year of the agreement.
Even with pre-FTA duty rates in effect for most of last year, exports to Panama through November reached nearly $14 million, making Panama the 17th largest value market for U.S. pork. USMEF projects that these market access improvements could boost annual U.S. pork and pork variety meat exports to Panama over $30 million by 2016.
Rodriguez explained that prospects in Guatemala are also promising in 2013, especially within the country’s rapidly maturing retail sector. Guatemala is Central America’s most populous country (about 13.8 million) and a well-established market for U.S. pork
“Guatemala offers an excellent growth opportunity, especially in the projects we're conducting with several different retail chains,” he said. “Until just a few years ago, only 20 percent of the population in Guatemala shopped in modern supermarkets. But that percentage has risen dramatically in recent years, giving USMEF an excellent venue to showcase the quality of U.S. pork and really differentiate our product.”
Though the markets are smaller in scale, Rodriguez also sees further market development potential in El Salvador and Costa Rica – making the region a diverse and worthwhile target for U.S. exporters exploring new opportunities.
“Even with the recent strides U.S. pork has made in Central America, there is plenty of room for growth,” he said. “The way this market is maturing and the customer base is expanding, it’s a very promising region for a wide range of U.S. pork products.”