Capital Update – For the Week Ending December 9, 2022
U.S. Pork Exports Soar During Pork Month
What happened? U.S. pork exports in October – National Pork Month – reached their highest in 16 months, according to data recently released by the United States Department of Agriculture (USDA). Year-over-year, exports were up 5% in October, topping 238,000 metric tons, the largest amount since June 2021. That was more than $697 million of product, an increase of 13% over the past year.
Comparing January through October 2022/2023, exports were down 8% by value, at $6.26 billion, and 12% lower in volume, at 2.18 million metric tons. Pork exports for 2022 through October represented 27.1% of total U.S. production.
U.S. pork destinations: Mexico remains the top market for U.S. pork, taking in a record $203.1 million of product in October. While volume was up just 1% year-over-year, value was 11% higher than October 2021. China/Hong Kong imported 37% more U.S. pork by volume and 39% more by value compared with the same period last year.
Other U.S. pork export markets that saw significant year-over-year increases were South Korea, with a 25% increase in volume and 26% in value; the Dominican Republic, up 45% and 59%, respectively. Countries in the Association of Southeast Asian Nations, particularly the Philippines, saw an 11% increase by volume and a 47% rise by value.
What does this mean for producers? For pork producers, exports in October added nearly $64 to the value of each hog marketed, up 14% from a year ago. For January through October, they added $60.18 per head. While that was down 5% compared with the same period in 2021, it was the second-highest 10-month value since 2014.
Resources: Learn more about NPPC’s fight for public policies, programs and trade pacts to ensure we continue to defend our freedom to operate and expand our access to global markets all while maintaining significant economic contributions.
NPPC Signs ATWG Letter of Support on WRDA of 2022
What happened? NPPC, alongside twenty-four other agricultural trade associations and organizations a part of the Agricultural Transportation Working Group (ATWG), signed onto a letter supporting the bipartisan agreement for the Water Resources Development Act (WRDA) of 2022.
What is the WRDA of 2022? The WRDA of 2022 bill, like a highway bill, provides construction and maintenance of ports, roadways and inland waterways.
Why is it important? By signing this letter, NPPC hopes this permanent policy change provides certainty and will bolster investments for U.S. inland waterways, expedites the modernization of locks and dams and enhances the ability of ATWG members to serve domestic and global customers.
Barge transportation moves about half of all grain exports and has a large hand in transporting input costs – such as fertilizer, feed and fuel along inland waterway systems. This legislation ensures this low-cost transportation is preserved and continues to generate revenues and significant value-add to the agricultural and overall U.S. economy.