An international development strategy from the National Pork Board is being used to build confidence in U.S. pork in a diverse global protein market.
NPB looks for areas to differentiate U.S. pork from competitors and add value into other markets. Iowa State University economist Dermot Hayes talks about why the data is studies and how it correlates to priced paid for hogs.
?Price of live hogs, especially in negotiated hogs, depends on how much we’re exporting. So, if exports are strong, then negotiated prices are strong and even hogs priced off the value of the carcass, they get stronger, too.?
Hayes explains how the pork board uses export information to increase demand.
?We?re exporting about 30 percent of the meat we produce. If we didn’t have that we’d have to downsize the industry by 30 percent. So, the Pork Board needs to fund programs and policies that that increase exports, because U.S. population is not growing very fast and U.S. meant consumption is not growing very quickly. So, if we want to grow the industry, then we need to look to export markets.?
Hayes says the National Pork Board uses Checkoff dollars to diversify exports. Year-to-date export value increased eight percent year-over-year at $6.8 billion and volume remained consistent at 5.4 billion pounds, even while exports to China decreased 24 percent in volume and 22 percent in value when compared with the same period last year.
?Our exports are actually up slightly in volume and up significantly in value. And that’s true despite losing a lot of the muscle meat business to China. Now our exports of a variety of meats to China are actually stronger this year, but to lose a significant portion of your largest customer, and yet have total volume of this, is an amazing achievement.?
Visit porkcheckoff.org to learn more.