Weekly USMEF Audio Report: Decline in Ground Seasoned Pork Exports Underscores Need for Tariff Relief in Japan
DENVER, CO – July 22, 2019 – The latest U.S. pork export results (for May) showed an uptick in shipments to Japan, the leading value destination for U.S. pork. After trending lower through the first four months the year, May pork exports to Japan increased 5% from a year ago to 36,373 metric tons, while export value ($148.6 million, up 3%) was the highest in 18 months. But January-May exports to Japan were still below last year’s pace, and U.S. Meat Export Federation (USMEF) Economist Erin Borror explains that this is largely due to a decline in U.S. shipments of ground seasoned pork – a product Japanese processors use as an ingredient for sausages.
Borror notes that U.S. ground seasoned pork faces a 20% duty rate in Japan, while competitors such as the European Union, Canada and Chile pay 13.3% due to recent trade agreements. For the first five months of this year, Japan’s imports of U.S. ground seasoned pork fell by $46 million year-over-year and U.S. market share dropped from 67% to 57%.
On a positive note, Japan’s tariff reductions have helped fuel an increase in pork imports and pork consumption, so Borror sees outstanding growth opportunities in the pork sector if the United States is able to secure a trade agreement with Japan.
The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry. It is funded by USDA; the beef, pork, lamb, corn and soybean checkoff programs, as well as its members representing nine industry sectors: beef/veal producing & feeding, pork producing & feeding, lamb producing & feeding, packing & processing, purveying & trading, oilseeds producing, feedgrains producing, farm organizations and supply & service organizations.
Submitted to the BARN by:
Director of Communications
U.S. Meat Export Federation