USDA forecasts record pork exports in 2008

by Editor
Tuesday, December 04, 2007

The U.S. Department of Agriculture (USDA) predicts that U.S. pork exports will reach a new record in 2008, while beef exports are expected to remain steady.

However, the dollar values of both will rise due to a continued weak U.S. dollar.

In its November outlook for U.S. Agricultural Trade report, the department forecast 2008 pork exports (including chilled, frozen and processed meats) will hit a record volume of nearly 1.1 million metric tons valued at $2.7 billion, up from its August forecast of 1.0 million metric tons valued at $2.6 billion, which would have been basically unchanged from 2007.

USDA left its beef and veal export forecast for 2008 unchanged in volume at about 545,000 metric tons, up from about 442,000 metric tons exported in 2007.

Beef and veal exports are now expected to be worth about $2.4 billion in 2008, up from USDA's August forecast of $2.2 billion and last year's $1.9 billion because of the weak dollar.

Relative to 2007, the U.S. dollar (adjusted for relative inflation rates) is expected to depreciate five percent against the euro, six percent against the Chinese yuan, three percent against the Brazilian real, eight percent against the Argentine peso and 0.5 percent against the Mexican peso in 2008. The dollar is expected to be up two percent versus the Japanese yen and unchanged against the Canadian dollar, according to the USDA forecast.