U.S. Pork Building Market Share in Hong Kong
U.S. Pork Building Market Share in Hong Kong
Visitors to Hong Kong quickly notice that the territory has meat offerings from a wide range of supplying countries, and from almost every continent that can sustain commercial livestock production. With zero import duties and no domestic livestock industry, Hong Kong presents a microcosm of what a global meat market might look like in the absence of trade barriers.
“Everything is available here,” said John Lam, regional programs manager for USMEF. “Thai fresh pork, Scottish Angus beef, Mongolian lamb, South African ostrich, Brazilian corned beef – it’s a highly competitive market.”
While trade analysts are pointing to a decline in this year’s U.S. pork exports to China and Hong Kong when compared to the record-setting totals of 2008, the visibility of U.S. pork in Hong Kong has increased significantly. In 2007, the United States’ share of Hong Kong’s imported pork market was less than 4 percent. So far this year (January-May), the U.S. is the third-largest supplier of pork muscle cuts to Hong Kong with an 11 percent share. This trails only Brazil and China, which hold a combined 57 percent share of the market.
Imported Pork Market Share in Hong Kong, January-May 2009
One of the factors driving this increase has been USMEF’s effort to ensure that U.S. pork is featured more prominently and consistently on restaurant menus and supermarket shelves. Supermarket leader Wellcome, for example, features 1-lb. packages of frozen, grain-fed U.S. pork chops and shoulder steaks. This item is proving to be very competitive with frozen Brazilian pork, and is increasingly sold in competition with local fresh pork. Wellcome began featuring its “First Choice” brand of frozen U.S. pork cuts late last year, and since that time has been promoting this portion-control product in conjunction with USMEF. A recent Wellcome promotion offered First Choice U.S. bone-in pork chops at a special price of about $3.84 (U.S.) per pound.
Wellcome supermarkets feature grain-fed U.S. pork shoulder steaks
Frozen, portion-control cuts of U.S. pork gained increased attention from Hong Kong retailers last year when low U.S. pork prices and strong global demand – especially in China – led to record exports to the China/Hong Kong region. “Corn Country” U.S. pork debuted in Hong Kong’s Yata supermarkets in May 2008, and in that month sold more than 8,000 packages at a single location. Since that time, frozen U.S. pork items have been available on a consistent basis in hundreds of Hong Kong supermarket outlets.
Although frozen U.S. pork offers consumers an excellent value, it is not the lowest-priced product in the market. Hong Kong consumers generally prefer fresh pork, which – depending on the cut – retails in the $3.75 to $5.00 per pound range. Frozen Brazilian bone-in pork loin can be purchased for as little as $1.67 per pound in frozen meat shops. While meat buyers for major retail chains report good customer response from U.S. pork, they feel aggressive promotion is necessary to build familiarity with consumers. Sales results support this contention.
“We see a surge in sales during promotion months that are up to three times that of normal sales,” said Lam.
The first marketing step for USMEF-Hong Kong was to work with importers and distributors on packaging and merchandising concepts for the product. Then, with support from the Pork Checkoff, USMEF allocated promotion funds to supermarkets to help launch these items in a critical mass of stores.
“Although this was initially a price-driven product, consumer recognition of U.S. pork in the retail market place is increasing," Lam said. “We are playing on the world stage now, and have really developed some excellent brand recognition.”
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The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.
For more information, contact Jim Herlihy at jherlihy@usmef.org.
U.S. Pork Building Market Share in Hong Kong
Visitors to Hong Kong quickly notice that the territory has meat offerings from a wide range of supplying countries, and from almost every continent that can sustain commercial livestock production. With zero import duties and no domestic livestock industry, Hong Kong presents a microcosm of what a global meat market might look like in the absence of trade barriers.
“Everything is available here,” said John Lam, regional programs manager for USMEF. “Thai fresh pork, Scottish Angus beef, Mongolian lamb, South African ostrich, Brazilian corned beef – it’s a highly competitive market.”
While trade analysts are pointing to a decline in this year’s U.S. pork exports to China and Hong Kong when compared to the record-setting totals of 2008, the visibility of U.S. pork in Hong Kong has increased significantly. In 2007, the United States’ share of Hong Kong’s imported pork market was less than 4 percent. So far this year (January-May), the U.S. is the third-largest supplier of pork muscle cuts to Hong Kong with an 11 percent share. This trails only Brazil and China, which hold a combined 57 percent share of the market.
Imported Pork Market Share in Hong Kong, January-May 2009
One of the factors driving this increase has been USMEF’s effort to ensure that U.S. pork is featured more prominently and consistently on restaurant menus and supermarket shelves. Supermarket leader Wellcome, for example, features 1-lb. packages of frozen, grain-fed U.S. pork chops and shoulder steaks. This item is proving to be very competitive with frozen Brazilian pork, and is increasingly sold in competition with local fresh pork. Wellcome began featuring its “First Choice” brand of frozen U.S. pork cuts late last year, and since that time has been promoting this portion-control product in conjunction with USMEF. A recent Wellcome promotion offered First Choice U.S. bone-in pork chops at a special price of about $3.84 (U.S.) per pound.
Wellcome supermarkets feature grain-fed U.S. pork shoulder steaks
Frozen, portion-control cuts of U.S. pork gained increased attention from Hong Kong retailers last year when low U.S. pork prices and strong global demand – especially in China – led to record exports to the China/Hong Kong region. “Corn Country” U.S. pork debuted in Hong Kong’s Yata supermarkets in May 2008, and in that month sold more than 8,000 packages at a single location. Since that time, frozen U.S. pork items have been available on a consistent basis in hundreds of Hong Kong supermarket outlets.
Although frozen U.S. pork offers consumers an excellent value, it is not the lowest-priced product in the market. Hong Kong consumers generally prefer fresh pork, which – depending on the cut – retails in the $3.75 to $5.00 per pound range. Frozen Brazilian bone-in pork loin can be purchased for as little as $1.67 per pound in frozen meat shops. While meat buyers for major retail chains report good customer response from U.S. pork, they feel aggressive promotion is necessary to build familiarity with consumers. Sales results support this contention.
“We see a surge in sales during promotion months that are up to three times that of normal sales,” said Lam.
The first marketing step for USMEF-Hong Kong was to work with importers and distributors on packaging and merchandising concepts for the product. Then, with support from the Pork Checkoff, USMEF allocated promotion funds to supermarkets to help launch these items in a critical mass of stores.
“Although this was initially a price-driven product, consumer recognition of U.S. pork in the retail market place is increasing," Lam said. “We are playing on the world stage now, and have really developed some excellent brand recognition.”
# # #
The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.
For more information, contact Jim Herlihy at jherlihy@usmef.org.