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Canada’s Pork Exports Sluggish in September; Beef Exports Strong

US_Canada-Pork-Trade

Canada’s pork/pork variety meat exports remained sluggish in September. Volume fell 4 percent year-over-year to 87,427 metric tons (mt), despite strong exports to China (10,281 mt, +21 percent and the largest since November 2014) and Hong Kong (2,787 mt, +54 percent). U.S. net imports of Canadian pork dropped to 14,203 mt in September, down 2 percent from a year ago and the smallest since May, reflecting larger U.S. exports to Canada.

Canada’s January-September exports totaled 749,032 mt, down 5 percent, with growth to the United States (297,439 mt, +18 percent), Mexico (68,672 mt, +16 percent), Taiwan (32,057 mt, +76 percent), South Korea (29,715 mt, +14 percent), Australia (20,731 mt, +41 percent), Hong Kong (19,920 mt, percent), Chile (9,840 mt, +73 percent), New Zealand (8,341 mt, 53 percent) and South Africa (6,727 mt, +521 percent) not offsetting the loss of the Russian market and smaller exports to Japan (126,329 mt, -7 percent), China (68,321 mt, -31 percent), the Philippines (22,295 mt, -5 percent), and Colombia (5,808 mt, -20 percent).

U.S. net imports of Canadian pork dropped to 14,203 mt in Sept, down 2 percent from a year ago and the smallest since May, reflecting larger U.S. exports to Canada. U.S. imports of Canadian hogs (through Oct. 17) were up 11 percent to 4.35 million head, including an increase in feeders (3.37 million head, +7 percent). Through Oct. 24, Canadian hog slaughter is running 2.4 percent ahead of last year’s pace at 16.48 million head.

US_Canada-Beef-Trade

Canada’s beef/beef variety meat exports were up 12 percent in September to 31,126 mt, maintaining August’s strong pace. This included another record for China (5,236 mt, +505 percent) and an uptick to Hong Kong. For January through September, exports were up 1 percent to 237,297 mt, led by the U.S. (174,394 mt, +6 percent) and China (18,665 mt, +219 percent). Exports were lower for Mexico (15,186, -11 percent), Japan (10,025 mt, -28 percent), and Hong Kong (8,669 mt, -56 percent), but larger for Angola (1,976 mt, +16 percent) and Saudi Arabia (1,450 mt, +131 percent).

January-September imports were up 2 percent to 155,680 mt, as growth from Australia (34,449 mt, +40 percent) and New Zealand (17,621 mt, +30 percent) offset smaller imports from the U.S. (89,470 mt, -10 percent). Australia has filled its 35,000 mt quota for imports into Canada, with about 70 percent of the volume being manufacturing beef. But similar to the U.S., the lean market has crashed in Canada and cold storages are reportedly full, so the volume of Australian beef entering North America will be very slow for the remainder of 2015.

Through Oct. 17, U.S. imports of Canadian cattle were 672,455 head, down 25 percent from a year ago, including a decline in feeders (269,000 head, -18 percent), direct slaughter fed cattle (165,559 head, -46 percent) and slaughter cows and bulls (225,902 head, -16 percent). Canada’s cattle slaughter (through Oct. 24) was down 8 percent to 2.06 million head, indicating very tight supplies even as Canada is yet to really begin its herd rebuilding process.

Sources: Global Trade Atlas, USDA and Meat and Livestock Australia