Strong incomes and a robust processing industry make Chile a potential market for growth of U.S. pork imports. To learn more about that opportunity, the U.S. Meat Export Federation (USMEF) and National Pork Board (NPB) recently hosted an NPB International Diversification Task Force trip to Chile to study the region from the ports to retail. Dr. David Newman, a producer from Missouri who serves on the boards of both USMEF and NPB, shared his insights into the Chilean pork market.
?The Chilean ag industry is very advanced,? Newman said. ?There are some very, very good production systems in Chile, and we were able to see them. There’s some tremendous processing capability there as well for further processed items. So what opportunities are there on the on the fresh pork side? For example, there’s a lot of heavily processed items there. So, I think that moving some of the individual, either trim items, or primals, I think there’s an opportunity across the board, quite honestly. We were in retailers as well, and if you look at items like ribs, there’s a big market there. And you will one of the things specific about Chile is in terms of their economy, you know, they rank in the top three in the Western Hemisphere, the United States, Canada and Chile, in terms of average income per person. So, the spending power is there, in other words, to purchase middle meats and to purchase for the processed meats.?
Chile has one of the highest per-capita incomes in the Americas and a robust processing industry- two factors that create a strong opportunity for U.S. pork. Newman said U.S. pork has advantages in the market not only because of safety and quality, but also because of U.S. grain production.
?They’re heavily reliant on the import of grain to raise livestock,? Newman said. ?They’re reliant on 100% of their corn, I believe 75% of their soybean meal. So, there becomes a cost equation that falls into that. Whereas here in the U.S., that least cost production is one of the things we talk about a lot in terms of raising livestock. And if you look at the opportunities, if we can get some of these shipping, and logistical issues out of the way, it does provide an opportunity in multiple markets for U.S. products on a cost standpoint.?
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