USMEF Strategic Market Profile

• As a whole, ASEAN consumers are extremely price sensitive which affects the importation of high quality pork cuts. That said, ASEAN regional per capita income is improving with an increasing share being spent on food.
• Both Malaysian and Indonesian processors are facing a decreased supply of fresh pork and will need to depend on imported frozen pork as raw material. In Vietnam, the prolonged incidence of diseases will encourage meat traders to look at imported pork in order to maintain customer confidence.

• U.S. pork is priced much higher than pork from Brazil, China, Canada and Europe. However, the weakness of the U.S. dollar will keep U.S. pork more competitive in the near term.
• With increased prices for imported chilled pork from Australia, certain gourmet sausages and hams are expensive to produce in Singapore, creating opportunities for U.S. premium brand sausages.
• U.S. pork has a limited presence on supermarket shelves as it is normally imported frozen by sea-freight, and pork at retail levels needs to be merchandised fresh/chilled to capture market share.
• U.S. exports to the Philippines face significant competition from domestic production and alternative proteins such as cheap Indian beef and frozen chicken. Imported U.S. pork is mainly offal and low value cuts.

• With more regional stability and the growth of tourism, the rapidly growing hospitality industry needs more food imports that include meat. However, further expansion of U.S. high quality pork in the HRI sector remains limited until the U.S. pork prices are more in line with the competition.
• USMEF has introduced U.S. pork loin into high-end restaurants especially in Singapore and Indonesia where U.S. pork enjoys an upper-class image and HRI outlets are able to achieve good profit margins without resorting to price competition.
• Projected growth in four- and five-star restaurants, U.S. food service franchises and first-class catering operations in the ASEAN region should result in increasing demand for U.S. pork, including processed products. This is particularly true in Singapore with the entry of the Casino business.
• In its efforts to position U.S. pork as a premium item, USMEF has introduced exotic U.S. Kurobuta pork and high-quality U.S. processed pork items to the retail sector. U.S. pork has a competitive advantage with such items as they cannot be duplicated by competing suppliers. 
• USMEF has been successful in introducing more U.S. processed pork (quality sausage, ham, pre-cooked bacon) to importers, particularly in markets like Singapore where there is a higher cost for production for processed products. The introduction of pre-cooked bacon to the foodservice sector will help to lay the in-roads for U.S. enhanced pork entry to the sector.

Product/Industry Image

• Although U.S. pork is expensive compared to domestic and other imported pork, USMEF has positioned U.S. pork as a premium item. U.S. Kurobuta pork, although priced very high, is recognized as the top gourmet item for pork and is now receiving greater acceptance in countries like Singapore, where it has a status similar to high-quality U.S. beef. 
• High quality U.S. pork ribs are well recognized in the HRI sector, and having U.S. pork ribs on the menu is a status symbol and good branding for the establishment. USMEF’s continued focus on differentiating U.S. pork is showing positive results in the foodservice sector, with increased use of U.S. pork tenderloin and loin as center-of-the-plate items.

Operating/Marketing Environment and Trade/Distribution Issues

• The growth of the retail sector has provided a greater geographical distribution of U.S. pork; for example, in the Philippines, the availability of U.S. pork variety meats like pork liver has expanded to smaller cities beyond Manila.
• Although Malaysia is a predominately Muslim country and pork is typically consumed only by the local Chinese who account for approximately 24% of the population, this segment of the population is very affluent. Specialty gourmet stores that cater to the wealthy Chinese and expatriates offer the best opportunities for retail pork and processed pork items. This is also the case in Indonesia.

Access Conditions

• A Trichinae-free certificate must accompany all chilled pork imports to Singapore. The U.S., New Zealand, Australia, Sweden and Canada are the only countries that supply trichinae-free certificates for their chilled pork.
• Currently, Malaysia requires that individual plants gain approval from Malaysian authorities before they can export pork muscle cuts to Malaysia. Pork variety meat and processed product exports do not need this approval. Additionally, Malaysia includes pork bellies and spare ribs on the list of permitted variety meats. No U.S. plants have been approved for export by Malaysian authorities but occasionally Malaysia will allow muscle cuts into the market when they are short of domestic supply such as during Chinese Festivals.

Import and market share data is based on import data of the Philippines and Singapore (from GTA), and U.S. export data is from the U.S. Department of Commerce, Trade Census Bureau.

Long-term Strategy:

• Develop brand/image recognition for quality U.S. pork and processed pork in the region, and increase the presence of U.S. pork in target high-profile retail outlets.
• Position and maintain a strong presence in the ASEAN food service industry with cuts like ribs and loins and processed items like pre-cooked bacon, ham and sausages.
• Position U.S. pork as a significant supplier to the pork processing industry in the region, particularly in the Philippines, Vietnam and Singapore.
• Educate the retail sector in the region about the profit potential of defrosted U.S. frozen pork and processed pork products, and introduce U.S. finished pork products as a substitute for locally manufactured products in target ASEAN countries.

USMEF Export Forecasts: