It is good to see that meat exports are holding up despite the global economic turmoil and efforts by China and Russia to reduce imports.
A story about U.S. meat exports on page 9 says Japan and Mexico are making up for reduced exports to China and Russia.
In Canada, sales statistics show fresh and frozen pork exports stood at $198.7 million in January, up 30 percent from the same month last year.
Beef exports totalled $132.4 million, up 34 percent from January 2008. December was similarly strong for both meats.
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Japan is the top buyer of Canadian pork, followed closely by the United States.
Japan buys $55 to $83 million of Canadian pork per month and the U.S. buys about $45 to $62 million per month.
Australia comes next, often buying more than $10 million a month while South Korea and Hong Kong follow, often in the $7 to 12 million range.
We reported last week that Russia intends to become self sufficient in pork production by 2011 and perhaps become an exporter. That is a concern because sometimes it is a major buyer of Canadian pork. In the second half of last year it often bought more than $25 million worth a month. In total, it bought about $190 million worth of Canadian pork. However, in December and January it backed off, buying $6 to $7 million a month.
China also became a more significant buyer in 2008. The activity mostly appeared in exports to Hong Kong, with transshipments through to the mainland.
Disease slashed Chinese pig production, forcing it to import large quantities of pork.
Canadian exports to Hong Kong jumped to $103 million in 2008 from $22 million the year before.
The pace does not appear to have dropped yet, with December and January exports in the $8 million to $9 million per month range.
Strong pork exports in 2008 prevented hog prices from crashing because of large supply. This year hog production in the U.S. and Canada is much tighter and the export market will not be as critical, but it will still be important, especially if rising levels of unemployment in the U.S. and Canada start to significantly cut domestic meat consumption.
