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Pork Checkoff reports show opportunities for exports to Vietnam, Philippines

 
By DOUG SCHMITZ
Iowa Correspondent

DES MOINES, Iowa – Two new market assessment reports by the Pork Checkoff show new opportunities for U.S. pork exports to Vietnam and the Philippines.
Conversely, Pork Checkoff officials said, the reports also show how African swine fever (ASF) outbreaks in Asia have impacted both countries’ pork industries, and related supply chains. 
“The annual Pork Checkoff producer survey identified diversification of U.S. pork exports as a top priority,” said Norman Bessac, Pork Checkoff vice president of international marketing. 
“These reports will help exporters position the U.S. pork industry as a supplier of choice in both countries, helping to expand our export options, and create even greater value for the more than 60,000 pig farmers here,” he added.
The reports are funded by the Pork Checkoff at the National Pork Board in Des Moines, and the USDA Foreign Agricultural Service Emerging Markets Program. The reports were prepared by Gira, a French global research firm. The Pork Checkoff collaborated with the USMEF and the National Pork Producers Council on the Vietnam and Philippines market assessment.
The reports said researchers share critical insights on how U.S. pork can position itself for long-term success in the Vietnamese and Philippine markets – two Asian markets with increased demand for pork consumption anticipated in the next decade.
According to Gira’s research, as Vietnam and the Philippines recover from COVID-19 and ASF outbreaks, pork consumption and import demand will increase. This projected increase is counter to other key markets, where pork consumption is expected to shrink by 2030. 
The predicted growth in these two markets is based on the rise in the middle classes and pork’s popularity in Vietnamese and Filipino cuisines, the report said.

For example, in Vietnam:
• Pork is the most common protein in Vietnamese cuisine, and as a result, total pork consumption in the country has more than tripled, from 31 pounds to 72 pounds (based on carcass weight equivalent, or CWE) since 2000.
• The country’s population will soon reach 100 million, boasting one of the fastest-growing economies in the world – even faster than China.
• The Vietnamese population is quickly becoming urban, as new jobs are drawing rural residents into cities with higher wages, which will increase demand for pork.
• Complete recovery to pre-ASF production levels in Vietnam will not be achieved until after 2025, creating an opportunity for imports to help meet demand.
In the Philippines:
• Pork is prized in the Filipino culture – both for special occasions, and as an everyday staple – with consumption at 40 pounds (based on CWE) per capita.
• Rising demand for pork, fueled by an expanding population, and increasing disposable incomes are significant drivers for the future.
• By 2028, a majority of Filipino residents will be urban. This change will help drive growth for imported pork as urban consumers have higher incomes, consume more meat, and are exposed to modern retail.
• The Filipino pork sector will not fully recover from the ASF outbreak until after 2030, requiring a reliable source of imports to meet domestic demand
Curtis Meier, a Clarinda, Iowa, pork producer, said these reports show how the Pork Checkoff is committed to listening to producer feedback, and collecting market insights and implementing programs, with the goal of adding value for U.S. pork producers through exports. 
“Exports are one of the greatest opportunities for our industry’s future success,” he said, “but it’s also our greatest risk if we rely too heavily on a few international markets.”
According to the U.S. Meat Export Federation (USMEF), exports accounted for nearly 30 percent of U.S. pork production from January to September 2020, with over 20 percent of production exported to just three markets: China, Mexico, and Japan.
“This market research and future studies will provide information that may help develop new markets, and create stable opportunities to generate value for our product internationally,” Meier said.
To view the full report, visit: pork.to/international.
2/8/2021