USMEF Addresses Full Spectrum of Challenges at South American Pork Seminar

South American pork industry representatives learned all about U.S. pork in USMEF seminars in Chile, Peru and Colombia

The South American pork industry is a broad umbrella that covers modern retailers and sophisticated processors all the way to small businesses in regions where road conditions are primitive enough to make it uncertain whether products can effectively be transported.

More than 80 South American pork industry representatives from 50 companies in Chile, Peru and Colombia recently accepted an invitation from USMEF to participate in educational seminars in each of those nations to learn more about the U.S. pork industry, types of cuts and specifications, and other information to build their comfort level with products to fit their business models. Funding for the sessions was provided through the Pork Checkoff.

“The challenge in South America is that our target audiences have a wide variety of needs,” said Jessica Julca, USMEF’s representative based in Lima, Peru. “In Chile, for example, attendees at our seminar paid more attention to the structure of the market and where they can buy directly from processing plants to provide an advantage for their businesses.”

In contrast, she noted that the attendees at the Peru session have many different levels of familiarity with the U.S. pork industry, and they benefitted more from a broad-based education that covered everything from the U.S. pork producer and production practices all the way to the advantages of using high-quality, consistent product from the United States.

The Colombia session raised a different set of issues. Since the Free Trade Agreement between the U.S. and Colombia took effect in 2012, U.S. pork exports to that nation have risen sharply – up 82 percent in volume (30,709 metric tons) and 70 percent in value ($80 million) during the first 11 months of 2013. However, Colombian importers have lamented the fact that in pre-FTA days, shipments could clear customs in just two days versus eight now.

“The Colombian customs and port administrations have to adjust their procedures to keep pace with an increasing volume of exports and imports,” said Julca. “Even road conditions are an issue. Importers have asked us to develop joint training programs for them and the customs inspectors to help clarify issues and import requirements. USMEF is working with the USDA Foreign Agricultural Service to develop just such a training program for implementation later this year.”

Led by Colombia, the Central/South America region has been one of the fastest growing markets for U.S. pork in the past year. The region has increased purchases of U.S. pork by 34 percent in volume and 35 percent in value in the first 11 months of 2013, totaling 108,796 metric tons (240 million pounds) valued at $275.5 million.

“There are a lot of opportunities for growth in this region,” said Julca. “Educational programs like these are essential as we build the familiarity of the buyers with the quality and value proposition of U.S. pork so they see the advantage of using it for their businesses.”