Audio: Industry Welcomes New Option for Certifying U.S. Pork Exports to Chile

Last week a new option was approved for certifying U.S. pork for export to Chile. Pork derived from hogs raised under the Pork Quality Assurance Plus (PQA+) program, as certified under a USDA Agricultural Marketing Service export verification program, is no longer subject to trichinosis testing. Dan Halstrom, senior vice president of global marketing for the U.S. Meat Export Federation (USMEF), explains that this change will lower costs for pork producers and exporters serving Chile, which is one of the largest markets in the Central-South America region for U.S. pork.

Before retreating somewhat last year, U.S. pork exports to Chile increased rapidly from 2010 through 2013. Exports in 2009 were just 1,890 metric tons (mt) valued at $5.5 million, making Chile the 26th-largest value destination for U.S. pork. But by 2013, Chile had climbed to the ninth-largest market with exports of 24,188 mt valued at $61.7 million. In 2014, exports totaled 19,110 mt valued at $49.3 million.

The United States is Chile’s largest supplier of imported pork, holding about 41 percent of the market. Primary competitors are Canada and Brazil.

Because the transit time between the U.S. and Chile is about 23 days, Halstrom says supplying chilled pork will remain a challenge even with the new PQA+ certification option. However, buyer interest suggests that there is definitely potential for growth in chilled exports to Chile.

TRANSCRIPT:

Joe Schuele: In this U.S. Meat Export Federation report we look at a new option for certifying U.S. pork exports to Chile. Under this new option, relief is granted from trichinosis testing and freezing requirements, as long as the pork is derived from animals raised under the Pork Quality Assurance Plus (PQA+) program, as certified under an Agricultural Marketing Service export verification program. Dan Halstrom, USMEF senior vice president for global marketing, has more details.

Dan Halstrom: In regards to Chile, the recent announcement that pork product derived from hogs raised under the Pork Quality Assurance Plus (PQA+) program is indeed good news for the industry and our exporters because it will give another option to export to Chile. It will also be a cheaper option, so this is a good development, especially in a market that's grown like Chile has. In 2013, it was out ninth-largest market at $61 million - up quite a bit from four years prior when it was only a $5 million market.

Joe Schuele: The transit time between the U.S. and Chile is about 23 days, which means supplying chilled pork will remain a challenge even with the new certification option. But these changes could also provide a boost for frozen pork exports to Chile by reducing the time and cost of getting the product to market.

Dan Halstrom: Chilled can be done, but it doesn't leave a lot of time for distribution. Chilled is definitely an area that's growing, but it's also a very large frozen market and this will provide exporters with a more competitive cost option for the frozen side as well. So it's good for both frozen and chilled, and given the diverse product mix product mix going down to Chile from the U.S., especially on the muscle meat side, this is indeed good news.

Joe Schuele: For more on this and other trade issues, please visit USMEF.org. For the U.S. Meat Export Federation, I’m Joe Schuele.