Promotion at Beijing Walmart Creates Visibility for U.S. Pork
Published: Oct 21, 2011
While China has been a booming market for U.S. pork exports this year – up 336 percent over 2010 – much of that product has been anonymously consumed through the processing and catering sectors. A new USMEF promotion with Walmart in Beijing is aiming to boost the recognition of U.S. pork in the largest pork-consuming nation on earth.
A Walmart store in southwest Beijing is working with USMEF on a trial promotion that prominently features U.S. pork in a stand-alone island display to help to entice consumer trial and purchase. The cuts are fabricated on-site from defrosted U.S. carcasses. While management at the store, one of the chain’s 12 in the capital, said it will evaluate sales in the coming week to determine whether to expand the promotion to other outlets, early feedback indicates solid consumer receptivity.
Support for the USMEF promotion with Walmart was provided through the USDA’s Market Access Program and the Pork Checkoff.
“U.S. pork sold through retail channels in China has been minimal,” said Donald Song, USMEF Beijing’s senior representative. “Our work with Walmart is part of a larger initiative to raise the visibility of U.S. pork in the eyes of consumers in China. We are encouraged by the willingness of Walmart Beijing to feature U.S. pork.”
USMEF has been actively cultivating new U.S. pork users in China this year. Earlier this month, USMEF lead a mission of Chinese meat processors to the United States. In November, USMEF will host a team of chain restaurant chefs to view U.S. concepts. USMEF also will participate in two trade shows next month, and continues to promote U.S. pork at a number of restaurant chains.
“The rapid growth and evolution of the Chinese economy is creating new opportunities to build consumer recognition for U.S. pork,” said Joel Haggard, senior vice president for USMEF Asia-Pacific. “The surge in building of mega-stores, like Walmart, provides a cost-effective channel for reaching a broad swath of the growing Chinese middle class, so it is critical that we continue to cultivate those relationships.”
High pork prices in China have prompted large pork imports this year. According to official Chinese data, pork imports including variety meats for the first eight months of the year totaled 728,388 metric tons, an increase of 42 percent and exceeding the pace of record 2008 imports by 6 percent. The U.S. has been the leading supplier.
Total U.S. pork exports (muscle cuts and variety meat) to China in the first eight months of 2011 reached 188,622 metric tons (415.8 million pounds) valued at $316.8 million, increases of 336 percent in volume and 237 percent in value over last year.
Chinese pork prices have softened slightly over the last month due to increasing domestic supplies and larger arrivals of imported products. Some products have also been released from China’s strategic pork reserve stockpile. During the second week of October, prices of Chinese pork carcass processed in medium to large plants cost approximately RMB 25/kg., or U.S. $ 177/cwt.
Although increased domestic pork supplies have been forecast, many analysts believe prices will not drop sharply in the near term. Seasonal winter demand, including large volume purchasing by South China processors of traditional preserved pork products, begins in mid-fall and will continue to the end of the year. Current Chinese pork prices are 40-plus percent over last year’s levels, and have been a major target of inflation-fighting policies of the central government.
Total U.S. pork exports (muscle cuts and variety meat) to China in the first eight months of 2011 reached 188,622 metric tons (415.8 million pounds) valued at $316.8 million, increases of 336 percent in volume and 237 percent in value over last year.
Chinese pork prices have softened slightly over the last month due to increasing domestic supplies and larger arrivals of imported products. Some products have also been released from China’s strategic pork reserve stockpile. During the second week of October, prices of Chinese pork carcass processed in medium to large plants cost approximately RMB 25/kg., or U.S. $ 177/cwt.
Although increased domestic pork supplies have been forecast, many analysts believe prices will not drop sharply in the near term. Seasonal winter demand, including large volume purchasing by South China processors of traditional preserved pork products, begins in mid-fall and will continue to the end of the year. Current Chinese pork prices are 40-plus percent over last year’s levels, and have been a major target of inflation-fighting policies of the central government.