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Renewed marketing, product development keys to improved pork sales: report
Renewed marketing, product development keys to improved pork sales: report

Winnipeg Free Press

time3 days ago

  • Business
  • Winnipeg Free Press

Renewed marketing, product development keys to improved pork sales: report

Opinion Canadian pork producers are likely to chew slowly as they digest a report released this week by one of the largest agricultural creditors in the U.S. While the paper by CoBank focuses on U.S. pork production and consumption trends, the North American hog and pork industries are highly integrated. Whatever happens in this report's wake, if anything, will spill across the border to influence the Canadian sector. Nearly one-quarter of the pigs born in Canada are sent to the U.S. for feeding and slaughter. Sixty per cent of those live hog exports are weanlings sent to U.S. feeding operations. Canada also exported US$1.7 billion in pork products to the U.S. in 2024, while importing US$850 million back. JOHN LOCHER / THE ASSOCIATED PRESS FILES Pigs eat from a trough at the Las Vegas Livestock farming operation in Nevada CoBank says the U.S. industry's continued reliance on export sales to places like Mexico, China, South Korea and Canada for nearly a quarter of its production is becoming too risky because of 'new trade policies' creating more volatility in global trade. Even without U.S. President Donald Trump's tariffs in the mix, trade with China has fallen sharply since record sales in 2020. That country's domestic production rebounded faster than expected following a devastating outbreak of African swine fever in 2018. Sales to China in 2024 were less than a quarter of the kilograms sold five years ago. Bacon has achieved a cult-like following and sausage products have gained appeal, which has doubled the market prices for the pork bellies and trimmings used to make them. However, the 'muscle cuts,' such as pork loins and hams, are often discounted because they aren't as convenient and consumers often don't know how to cook them. 'Sluggish exports could mean more pork loins in domestic markets, and U.S. consumers have difficulty cooking 'the perfect pork chop,'' the report says. Exports of so-called 'variety meats,' such as livers, hearts, kidneys, tongues, stomachs, snouts, ears, feet and tails, were worth $1.3 billion in 2024, but they aren't popular menu items in North America. 'Any trade barriers in place for countries that purchase variety meats could cause implications for the U.S. pork sector because those products have extremely limited demand in the U.S.,' CoBank says. The industry has launched campaigns focused on convincing consumers they need more pork on their forks, something the Canadian sector has been working on, too. Even though Canadian pork consumption is much lower, at about 16 kg per capita, recent marketing efforts have achieved increases of just under 15 per cent. CoBank warns increasing U.S. consumption, which has remained static at about 22 kg per capita since the 1970s, will be challenging because the parts of the animal the industry currently exports are such a hard to sell to American consumers. 'If the U.S. consumer is to reimagine pork, the pork industry may need to make drastic changes, including recalibrating the genetic hog makeup and showcasing different cuts at retail and through food service.' CoBank cites Kansas State University research that names taste as the primary driver for protein purchases. When it comes to animal protein, the flavour is in the fat. Weekday Evenings Today's must-read stories and a roundup of the day's headlines, delivered every evening. That's a problem for a sector that heeded the low-fat messaging of yesteryear and shifted genetic focus in selecting breeding stock towards lean carcass weights, rapid growth and feeding efficiency. CoBank says the industry needs to rethink that strategy if it wants to convince consumers to eat more pork. It also must put more effort into marketing and new product development focused on eating quality and convenience. 'The lean hog formulation that was adopted by the broad bulk of U.S. producers more than two decades ago has largely influenced the pork that U.S. consumers are offered today,' the report says. 'This has left something to be desired when comparing pork chops to beef steaks, often with an overcooked chop delivering a bad experience.' CoBank is signalling a shift in market direction that has obvious implications for the Canadian sector. When it's time to make a change, the consolidated and vertically integrated industry will be able to pivot relatively quickly. However, with all the moving parts to this equation, now is not the time. Laura Rance is executive editor, production content lead for Glacier FarmMedia. She can be reached at lrance@ Laura RanceColumnist Laura Rance is editorial director at Farm Business Communications. Read full biography Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.

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