By Malinda Geisler, content specialist, AgMRC, Iowa State University, malindag@iastate.edu.

Profile revised March 2010.
 

Supply
The United States is the world’s second-largest producer of pork. China is the world’s largest pork producer, with nearly half of the world's total production. As of December 1, 2009, USDA estimated 65.8 million hogs and pigs were in the United States, down 2 percent from 2008. Of that, 60 million were market hogs.
 
Demand
Pork is the most consumed meat in the world. With increasing global incomes, more consumers worldwide are shifting to meat-based diets. 

In 2009, pork trade was affected by an outbreak in humans of novel H1N1 influenza, which was misnamed swine flu by the media. The outbreak resulted in China banning U.S. pork from late April through late October 2009. According to the National Pork Producers Council (NPPC), 2009 novel H1N1 resulted in lower pork demand in May and June to Mexico as Mexican consumers shied away from pork from any source. 

Official and unofficial bans on U.S. pork were placed in 27 countries. According to testimony by NPPC before the U.S. House Committee on Agriculture in October 2009, bans on U.S. pork were put in place despite statements issued by the World Health Organization, the World Animal Organization and the World Trade Organization that import bans on pork due to 2009 novel H1N1 would be unjustified because there was no evidence to indicate the virus could be transmitted by handling or consuming pork.

Exports
In 2009, 18 percent of U.S. pork production was exported for a total of 4.12 billion pounds. While pork exports were down 11.6 percent compared to 2008, it was the second highest export year for U.S. pork. U.S. exports continue to grow with strong demand, particularly from China, Hong Kong and Russia.

Japan is the largest customer of U.S. pork. Japan purchased 1.27 billion pounds of U.S. pork in 2009. U.S. exports of frozen pork have maintained growth in the Japanese market. In recent years, U.S. pork exports benefited from increased volume when Japan closed its borders to U.S. beef.

Other key export locations for U.S. pork are Mexico and Canada.  Economic growth and the ongoing development of the Mexican retail sector have contributed to Mexican demand for U.S. pork exports.

Live hog exports from the United States have averaged less than 1 percent of total U.S. hog slaughter. In 2009 the United States exported 21,245 live hogs. About half of the live hog exports went to Canada. Other buyers were China and Mexico.   

Imports
The United States imported almost 834 million pounds of pork in 2009. The majority of pork imports were from Canada. Denmark comprises 9 percent of U.S. pork imports. A significant share of the imports is baby back ribs. Denmark produces a smaller animal compared to the United States, thus more suited for baby back ribs.

Foreign Ag Service claims the United States and Canadian pork markets are increasingly integrated in the movement of live pigs. Canada accounts for the majority of total U.S. pork imports. Live hog imports totaled 6.36 million pigs in 2009. 

Competition
The United States competes with Canada for export sales to Mexico. The European Union is a primary competitor for pork sales to Japan. Overall, strong export competition is also being experienced from Brazil and the Russian market. The Pacific Rim and Mexico will continue to be growth markets for U.S. pork.
 
Long-term Competition
USDA’s Agricultural Baseline Projections to 2019, released in February 2010, indicated Brazil as a major pork exporter. Yet, until other countries recognize Brazil as free of Foot and Mouth Disease (FMD), it will limit Brazilian pork producers' ability to compete in some markets.

Increasing efficiency in the U.S. pork production will enhance the competitiveness of U.S. pork. Production costs and environmental regulations, rather than production efficiencies by competing exporters, will influence long-term gains in U.S. pork exports. According to USDA, countries such as Brazil with growing pork industries tend to have lower costs.

Key exports markets for U.S. pork will continue to be Mexico and Pacific Rim countries. Canada remains a competitor to the United States for these markets.

The value of the U.S. dollar relative to other pork exporting country's currencies is expected to help U.S. pork export volumes.
  
Traceability
According to the U.S. Meat Export Federation (USMEF), some countries are using safety as a form of protectionism. Asia and Europe, for example, are increasingly making traceability a condition of market access. The United States offers limited traceability on its pork exports.

Related to traceability is the country-of-origin labeling (COOL) program, which was included in the Farm Security and Rural Investment Act of 2002 (2002 Farm Bill). The labeling program was mandatory as of March 16, 2009. The Agricultural Marketing Service is responsible for enforcing and regulating COOL.
 

Sources
Agricultural Baseline Projections, Economic Research Service (ERS), USDA.

Europe - Pork Profile, U.S. Meat Export Federation.

Hogs & Pigs, National Agricultural Statistics Service, USDA.

Japan - Pork Profile, U.S. Meat Export Federation.

Livestock, Dairy and Poultry Outlook, ERS, USDA.

Meat, Livestock, Poultry and Egg Analysis, Foreign Agricultural Service, USDA.

U.S. Pork, Beef & Lamb Export Success Continues, U.S. Meat Export Federation, February 17, 2009.

U.S. Pork Industry Economic Crisis Testimony, National Pork Producers Council, October 22, 2009.

U.S. 2003 and 2004 Livestock and Poultry Trade Influenced by Animal Disease and Trade Restrictions, ERS, USDA, 2004.