The 11-member delegation will visit Ohio, Indiana,
Illinois and Iowa over the course of the week, with opportunities to gain
firsthand insights on all aspects of the US pork industry. The tour was
organised by the US Meat Export Federation (USMEF) and is co-hosted by the Ohio
Soybean Council and the Iowa Pork Producers Association.
Leading
export destination
China recently emerged as one of the leading
destinations for US pork exports. Through the first seven months of this year,
pork and pork variety meat exports to the China/Hong Kong region have increased
by 288 percent in volume and 373 percent in value over the same period in 2007.
With Jan.-July totals of 286,335 metric tonnes valued at about $497 million,
China/Hong Kong is the largest export market by volume for US pork and pork
variety meats in 2008, and the second-largest market (behind Japan) in
value.
Market conditions, however, have become much less favourable in
recent weeks. China has made a concerted effort to bolster its domestic pork
production, resulting in significant herd expansion. These larger inventories
have led to a decline in live hog prices – including a drop of approximately 15
percent in September alone. Piglet prices in the major hog-raising regions of
China have dropped nearly 40 percent from their peak in the early spring. These
factors are severely limiting market opportunities for US pork, especially
muscle cuts.
“The first half of this year showed us the fantastic market
potential that China holds for US pork, but current conditions show us that this
is still a volatile and very price-sensitive market,” said Donald Song, USMEF's
senior representative for north China. “The longer-term fundamentals point to a
strong future for US pork exports to China, but success in this market will not
come easily. Our marketing efforts will need to be more focused and efficient
than ever.”
Increase understanding
According to Song,
one of the keys to profitability and success in China is the development of
positive relationships with meat buyers in the region. The team of pork industry
representatives visiting the United States is looking not only to increase its
understanding of the US pork industry, but also to develop contacts with
producers and exporters. In Ohio, the group will receive an educational view of
Ohio pork research and production, as the well as the opportunity to meet with
representatives from many sectors of Ohio agriculture.
In addition to the
Ohio Soybean Council, Merritt expects representatives of the Ohio Pork Producers
Council, the Ohio Farm Bureau Federation and the Ohio Corn Marketing Program to
participate. On Thursday the group travels to Indiana for a visit to the
headquarters of Elanco Animal Health, for an overview of Elanco's worldwide
contributions to improved swine health and performance.
The delegation
will be in Chicago, Friday through Sunday, where highlights will include a visit
to the Chicago Board of Trade and the opportunity to experience some of
Chicago's most outstanding dining establishments. Monday, the group arrives in
Des Moines for a “Meet the Buyers” conference in which they will meet with
representatives of the Iowa Pork Producers Association, as well as leaders from
other sectors of Iowa agriculture.
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