With export volume of U.S. pork and pork variety meat up 35 percent in 2004, ...

With export volume of U.S. pork and pork variety meat up 35 percent in 2004, there are great opportunities and growth for the U.S. pork industry in the international marketplace, but that potential does not exist without challenges.

That was the message U.S. Meat Export Federation President and CEO Philip M. Seng delivered Saturday to a standing-room-only crowd of U.S. pork industry leaders in Orlando at the National Pork Industry Forum, the annual business meeting of the U.S. pork industry.

“The meeting itself was pivotal since it was a very large forum of the national pork industry,” Seng said. “The U.S. pork industry has had a great deal of success in export markets with 14 years of growth, but in some ways we’re just getting started.”

For the first time in 2004, the U.S. pork industry exported more than 1 million metric tons of pork and pork variety meat products valued at more than $2 billion, in addition to setting the 14th consecutive record for U.S. pork exports by volume.

Mexico was the largest growth area for U.S. pork and pork variety meat exports in 2004, up 65 percent over the previous year in volume, with a leading 361,587 metric tons (mt), and up 92 percent in value with $566.5 million. Japan led in value with $978.5 million, up 25 percent, and was not far behind Mexico in volume with 313,574 mt, up 16 percent.

USMEF helps increase the value and profitability of U.S. pork by creating global demand for the product. “One of the key things USMEF does is training and education of chefs in international markets on how to best utilize U.S. pork,” Seng said. “USMEF also concentrates on educating consumers on the safety, versatility and nutrition value of U.S. pork.”

In Mexico, for example, USMEF launched a successful Mother’s Day campaign using advertising and in-store banners to draw consumers to purchase U.S. pork, which was packaged with a coupon worth two points.

Consumers could collect 15 points to earn tickets to an educational and entertaining Mother’s Day event. The event drew 3,000 people and increased sales 42 percent for partnering retailers Gigante and Commercial Mexicana.

The promotion, partially funded by the National Pork Board, rewarded consumers, consisting of mostly housewives and mothers, for purchasing U.S. pork and encouraged them to experience for themselves U.S. pork is safe, tasty and nutritious.

The same message was delivered to consumers in Japan at the Bridgestone Indy Japan 300-mile race in April where USMEF sponsored the “American Pork Village” in front of the speedway entrance to attract consumers with the smell of barbequing U.S. pork while also providing cooking seminars, games and free samples.

Additionally, pork checkoff dollars helped USMEF utilize an American Pork Caravan that traveled to different retailers from May to June in Japan’s six major cities. The aim of the campaign was to offer correct information to consumers about U.S. pork and familiarize Japanese consumers with its good taste. Stores visited by the caravan experienced an extraordinary five-fold increase in sales.

The growth opportunity for the U.S. pork industry is not without challenges of growing competition in export markets, checkoff uncertainty and non-standardized trading principles.

“Free trade agreements can be positive in opening markets, but they also can be negative because they provide exclusive access for specific countries,” Seng said. “Competition is also intensifying in these markets. When I went to Japan 20 years ago there were only four countries trying to export pork there and today there are around 20.”

Brazil has emerged as a global meat exporter increasing from 2 percent of the world pork trade in 1994 to 15 percent in 2003. Brazil’s success is largely due to tailoring production to the needs of international consumers.

Canada and Denmark, the top two competitors of U.S. pork, continue to push aggressive promotion programs in Japan and other markets while China has the potential to turn the world’s largest hog production base into an export powerhouse.

World food demand is expected to increase 50 percent over the next 20 years, paced by the increasing population and affluence of China.

For the U.S. pork industry to compete in the international market, funding must be secured to continue building demand for U.S. product. This is a potential challenge as the checkoff system is uncertain and high U.S. government budget deficits decrease federal funding for agriculture.

The U.S. Meat Export Federation 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, sorghum and soybean checkoff programs.

– USMEF –