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

Profile revised March 2011.
 

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, 2010, USDA estimated 64.3 million hogs and pigs were in the United States, down 1 percent from 2009. Of that, 58.5 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 2010, 19 percent of U.S. pork production was exported for a total of 4.23 billion pounds and valued at $4.78 billion. The volume and value of U.S. pork exports were second only to export records set in 2008. 

Japan is the largest customer of U.S. pork. Japan purchased 30 percent of U.S. pork exports valued at $1.65 billion in 2010. U.S. exports of frozen pork have maintained growth in the Japanese market. Other key export locations for U.S. pork are Mexico at 25 percent and Canada at 10 percent of U.S. pork exports. 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 24,207 live hogs. About half of the live hog exports went to Canada. Other buyers were China and Mexico.   

Imports
The United States imported almost 860 million pounds of pork in 2010. The majority of pork imports, or 81 percent, were from Canada. Denmark comprises 9 percent of U.S. pork imports. A significant share of the imports is baby back ribs. Compared to the United States, Denmark produces a smaller animal that is 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 5.7 million pigs in 2010, or nearly 10 percent fewer than the previous year. 

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 2020, released in February 2011, 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.
  
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. 

Global Agricultural Trade System, Foreign Agricultural Service (FAS), USDA.

Hogs & Pigs, National Agricultural Statistics Service, USDA.

Livestock, Dairy and Poultry Outlook, ERS, USDA.

Meat, Livestock, Poultry and Egg Analysis, FAS, USDA.

U.S. Pork Exports Help Boost Trade Balance, National Pork Board, March 2011.

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

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