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U.S. pork exports set another record in ’08

By DOUG SCHMITZ
Iowa Correspondent

CLIVE, Iowa — According to the latest Census Bureau statistics, U.S. pork exports have risen sharply over the past 16 years, with Iowa remaining the leading pork-exporting state, setting another pork export record in 2008.

“I think the numbers speak for themselves and are proof that worldwide demand for pork is strong and Iowa pork remains a great value in the international market, particularly Japan,” said Dave Moody, president of the Iowa Pork Producers Assoc. (IPPA).

The Census Bureau added that because of the prevalence of exporting companies in California, that state is second in pork exporting, followed by Nebraska, North Carolina and Illinois. What’s more, the U.S. Meat Export Federation (USMEF) said U.S. pork exports jumped 200 percent in 10 years, with one of every 3.3 pounds of pork traded globally originating from the United States.
Released Sept. 10, the new report, which has been tracking individual state export totals since 1996, said pork export totals for the first half of 2008 indicated that Iowa fresh and frozen pork exports are at more than $390 million, an increase of nearly 57 percent over the same six-month period in 2007, according to the Iowa Department of Economic Development (IDED).

That figure jumps to more than $433 million when edible pork offal products such as stomachs, intestines and hearts are factored into the total, the IDED said.

“Since (1996), exports of Iowa fresh and frozen pork to Japan have ranged from $190 million in 1998 to $531 million in 2006,” Moody said. “In 1996, 91 percent of Iowa’s fresh and frozen pork exports went to Japan.

“Since 2005, Iowa fresh and frozen pork exports to Japan have been in excess of $500 million each year. Through the first six months of 2008, the total was $466 million, so this shapes up to be another outstanding year for shipments of pork to Japan.”
In addition, for the second quarter of 2008, fresh and frozen Iowa pork exports were up 110 percent and pork offal products increased to 178 percent from the same period in 2007.

“Iowa continues to lead the nation in pork production,” Moody said. “More hogs are marketed here each year than any other state. Because of our corn and soybean production, we have ready access to feed for livestock and the manure from the hogs is applied to the cropland, and serves as a valuable resource.

“The abundance of hogs and the close proximity to several outstanding packing facilities also helps Iowa producers in the export market. And, we’re blessed with an interstate highway system that aids in the transportation of livestock. Also, Iowa producers are widely recognized for producing safe and nutritious pork products.”

Mark Fischer, IDED’s meat, livestock and genetics marketing manager, said the reason Iowa leads the nation in pork exports is because worldwide demand for pork is strong and the U.S. dollar is soft.

“Iowa produces high quality (pork) products and producers have a commitment to meeting customers’ needs,” he said.
“It’s easy to increase percentages when you start with a low number, but in this case, we’re talking about some very high numbers and for the exports in Iowa to increase by more than 100 percent, that’s phenomenal for any period of time.”

For the period Jan. 1-June 30, most of Iowa’s pork was sold and shipped to four countries, with Japan remaining the state’s top market, importing 48 percent of Iowa’s pork.

“The state of Iowa has enjoyed a sister-state relationship with Japan for more than 50 years,” Moody said. “Japan’s terrain prevents it from producing enough food to feed its 125 million people. The Japanese have great amounts of disposable income and the resources that enable them to purchase and enjoy quality food.”

Currently, Korea and Canada are each at 13 percent and Russia is importing 10 percent of the state’s product, with Canada’s percentage being significant because its purchases have increased from $12 million in 2007 to $50 million this year – a 300 percent increase, according to the Iowa Farm Bureau Federation.

Danita Rodibaugh, USMEF executive committee member, a Rensselaer, Ind. pork producer and past president of the National Pork Board in Des Moines, said the consistent quality of U.S. pork products and decades of campaigns and promotions have made the U.S. the dominant player in the global pork industry.
“It’s clear that future growth and prosperity for the U.S. pork industry are inextricably tied to our ability to grow exports,” she said. “The increasing presence and importance of U.S. pork in the global marketplace is a tribute to the quality of product, in addition to how well we are marketing it overseas.”

Overall, Iowa exports pork to 27 countries, which Fischer said is good news for Iowa and the pork-producing sector.

“At a time of increased production from the swine sector,” he said, “finding new outlets and creating new demand for pork products creates good opportunities for everyone within the pork industry.”

9/24/2008