Between January and May, US pork exports are down 4% in volume against the same period of last year. However, with the removal of Mexican and Canadian tariffs on US goods in late May, US pork exports are set to receive a boost in the latter half of the year.
Exports to Japan and China/Hong Kong in the first five months of the year took a hit compared with last year’s export volumes, with pork volumes exported to Japan down 5% y-o-y and to China/Hong Kong 7% lower y-o-y. Exports to South America and Oceania offset some of the declines to Asian markets during this period. A 45% y-o-y growth in volume to Oceania was achieved while exports to South America, namely Colombia, Chile and Peru, rose 40% higher y-o-y.
For Mexico, due to the retaliatory tariffs on US goods including pork, exports were down 19% in volume between January and May. However, the removal of tariffs on US pork by Mexico in the penultimate week of May is expected to see US pork exports to the region rebound in the second half of the year. Whether exports to Mexico will return to pre-tariff levels remains to be seen, but the boost in exports will likely add an upward pressure to US pork prices. The Mintec price for US pork in June has dropped -6.2% m-o-m.