Audio: Despite Slowdown from Last Year, U.S. Pork Exports to Korea Performing Well
Published: Jun 18, 2012
Year-over-year export statistics can sometimes be deceiving, and USMEF Economist Erin Borror says that’s definitely the case with regard to this year’s U.S. pork exports to South Korea.
Through April, pork exports to Korea are down about 30 percent in volume (67,000 metric tons) and 20 percent in value ($192.7 million) compared to last year’s pace. However, 2011 was a very unusual year in Korea as its swine herd was decimated by foot-and-mouth disease and domestic pork was in extremely short supply. As Borror points out, this year’s exports are by far the second-highest totals ever recorded to Korea – easily outpacing the pre-2011 records set in 2008.
Borror also notes that analysts should be careful not to underestimate the benefits the U.S. pork industry will derive from the Korea-U.S. Free Trade Agreement. The agreement just took effect in mid-March, so its full impact won’t be felt for some time. Borror points out that the FTA is critical to the U.S. industry’s ability to maintain a level playing field with Europe, which is a major provider of frozen pork to Korea. It will also deliver a significant advantage over Canada, which currently has no agreement with Korea, with regard to chilled pork.
TRANSCRIPT:
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report. Through April, U.S. pork exports to South Korea we down substantially compared to last year. But, USMEF economist Erin Borror, explains that unusual circumstances were in place in 2011 and that this year’s pork exports to Korea are actually performing quite well.
Erin Borror: U.S. exports to Korea were around 67,000 metric tons through April, and that was down about 30% from last year. But, if we look at the previous record year, in 2008, our volume this year was still up 38%. So, exports this year will be, by far, the second best ever; and on the value basis, exports were around $190 million dollars this year, which is down about 20% from last year’s record level. But, nearly double the value of exports in 2008, which was again, our previous high before last year. So, if you think to give context to the numbers, the U.S. is still the largest single supplier with about a third of the market, followed by Canada with about 14% market share. The U.S. and Canada are the largest suppliers of chilled pork. Korea’s chilled pork imports from the U.S. were actually up about 4.6% first four months of the year with the U.S. having about 39% of the market share.
Joe Schuele: Borror adds that despite the numbers being down from last year, people should not underestimate the significant benefits the U.S. pork industry will derive from Korea-U.S. Free Trade Agreement.
Erin Borror: The FTA was implemented mid-March, so we’ve only had about a month and a half of reported statistics. We also are, of course, comparing to last year where Korea had several duty free quotas allocated because of their FMD crisis and shortage of pork. It’s also important to remember that Europe has a free trade agreement with Korea implemented last summer. But, our deal is better than Europe’s and our duties are phased out faster and Canada does not have an agreement and they are definitely, and increasingly at a disadvantage.
Joe Schuele: For more on this and other trade issues, please visit usmef.org
Through April, pork exports to Korea are down about 30 percent in volume (67,000 metric tons) and 20 percent in value ($192.7 million) compared to last year’s pace. However, 2011 was a very unusual year in Korea as its swine herd was decimated by foot-and-mouth disease and domestic pork was in extremely short supply. As Borror points out, this year’s exports are by far the second-highest totals ever recorded to Korea – easily outpacing the pre-2011 records set in 2008.
Borror also notes that analysts should be careful not to underestimate the benefits the U.S. pork industry will derive from the Korea-U.S. Free Trade Agreement. The agreement just took effect in mid-March, so its full impact won’t be felt for some time. Borror points out that the FTA is critical to the U.S. industry’s ability to maintain a level playing field with Europe, which is a major provider of frozen pork to Korea. It will also deliver a significant advantage over Canada, which currently has no agreement with Korea, with regard to chilled pork.
TRANSCRIPT:
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report. Through April, U.S. pork exports to South Korea we down substantially compared to last year. But, USMEF economist Erin Borror, explains that unusual circumstances were in place in 2011 and that this year’s pork exports to Korea are actually performing quite well.
Erin Borror: U.S. exports to Korea were around 67,000 metric tons through April, and that was down about 30% from last year. But, if we look at the previous record year, in 2008, our volume this year was still up 38%. So, exports this year will be, by far, the second best ever; and on the value basis, exports were around $190 million dollars this year, which is down about 20% from last year’s record level. But, nearly double the value of exports in 2008, which was again, our previous high before last year. So, if you think to give context to the numbers, the U.S. is still the largest single supplier with about a third of the market, followed by Canada with about 14% market share. The U.S. and Canada are the largest suppliers of chilled pork. Korea’s chilled pork imports from the U.S. were actually up about 4.6% first four months of the year with the U.S. having about 39% of the market share.
Joe Schuele: Borror adds that despite the numbers being down from last year, people should not underestimate the significant benefits the U.S. pork industry will derive from Korea-U.S. Free Trade Agreement.
Erin Borror: The FTA was implemented mid-March, so we’ve only had about a month and a half of reported statistics. We also are, of course, comparing to last year where Korea had several duty free quotas allocated because of their FMD crisis and shortage of pork. It’s also important to remember that Europe has a free trade agreement with Korea implemented last summer. But, our deal is better than Europe’s and our duties are phased out faster and Canada does not have an agreement and they are definitely, and increasingly at a disadvantage.
Joe Schuele: For more on this and other trade issues, please visit usmef.org