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 Producers visit Thailand and Vietnam to expand pork
markets
 epresentatives of
the Iowa Pork Producers Association traveled to Vietnam and Thailand
earlier this year to assess future market potential and sales
opportunities for pork and pork variety meats.
The mission was a cooperative effort of the
Iowa Department of Economic Development (IDED), U.S. Meat Export
Federation (USMEF) and IPPA. Also participating were Asian sales
managers for two pork packing companies with Iowa facilities.
Vietnam is the U.S.'s 10th largest export
market," said Curtis Meier, President of the IPPA and representative
on the trade mission. "Currently, Vietnam is a small market
for U.S. agriculture exports, but we are working to expand those
markets."
 "In
Thailand, opportunities should exist for U.S. pork muscle meat
exports to serve the growing Thai tourism sector," said
Meier. "Thailand economically relies on tourism, as it contributes
over 10% of the GDP (Gross Domestic Product)."
Other representatives from the IPPA include
Sam Carney of Adair and Rich Degner, IPPA staff.
 Vietnam
Vietnam is only slightly larger in size than the state of New
Mexico but stretches nearly 1000 miles from north to south. Flat
deltas in the north and south are divided by central highlands.
Vietnam is a strong agricultural country with about 70% of its
80 million people earning some portion of their income from on-farm
activities.
Vietnam is the world's largest rice exporter,
as well as a large exporter of coffee, black pepper and seafood,
including farm raised shrimp and catfish.
 The population is
young, with 60% under the age of 24 years, and well-educated.
An increasing percentage of the population is studying the English
language.
Vietnam is a communist country that has had
to recover from the ravages of war, loss of financial support
from the old Soviet Bloc and the rigidities of a centrally planned
economy. Communist leaders are grudgingly initiating reforms
necessary for a free market. Many urban people desire to be business
people and are opening small shops throughout the country. The
government controls most companies, manufacturing and utilities
and is moving some state-owned enterprises to privately owned.
 Vietnam has 23.1
million head of hogs, the second largest swine herd in Asia,
following China. Per capita meat consumption is 37.4 pounds per
year and pork accounts for about 75%. The government views the
swine sector as the most important part of the livestock industry
and is working to improve the swine herd.
Hogs are normally slaughtered at night weighing
between 175 - 220 pounds. The live hog prices typically range
from $.51 - $.58 per pound. Following slaughter, the carcasses
are cut and distributed during the night to local wet markets
for sale. The merchants in the markets further cut the pork for
customers who begin shopping in early mornings for family consumption.
Consumers typically shop their local wet market two times per
day for food. Rice is eaten at every meal. The vast majority
of the food is sold fresh and not refrigerated.
In the local wet market, pork products were
priced as follows:
Heart - $2.42 per pound
Kidney - $1.52 per pound
Stomach - $1.52 per pound
Muscle meat - $1.20 per pound
Feet - $0.45 per pound |
Consumers prefer fresh, not frozen, pork.
The import duty on fresh pork is 40% and processed pork is 20%.
The government discourages importation of products produced and
exported by Vietnam.
Thailand
 Thailand extends down the Malaysian
Peninsula in Southeast Asia covering an area about the size of
Arizona and Utah combined. It has a population of 63 million
people with less than one-fourth living in cities. The central
region is dominated by fertile agricultural land and Bangkok.
The per capita income is about $2,000 per year. The King and
Queen are the most respected and honored people in the country.
Agriculture employs roughly half of the labor force, but the
percentage is declining as more people seek jobs in industry
and the service sector. Last year, Thailand exported $2.5 billion
of fish, primarily shrimp, and $2.4 billion of rice.
Thailand produces 9 million hogs per year.
Approximately 60% of the production is very modern and under
the control of feed companies. Hogs are marketed at 220 pounds.
The cost of production and the live hog price were close to breakeven
in February at approximately $.34 per pound. At least one government
slaughterhouse is located in each of the 76 provinces in Thailand.
 Last year, Thailand
purchased $800 million in bulk commodities, primarily feed grains
and soybeans. They will typically purchase U.S. corn after Thai
corn is used each year. Last year they purchased 1.5 million
metric tons of soybeans and 1.5 million metric tons of soybean
meal from the U.S.
Pork consumption is 23 pounds per person per
year. Thailand is self-sufficient on pork at the current level
of consumption, but is short on pork variety meats such as liver,
intestines and feet. Prices of pork and pork variety meats were
similar to that of Vietnam. Thailand is reluctant to allow pork
imports and, consequently imposes high duties. Opportunities
should exist in the future for U.S. pork muscle meat exports
to serve the growing Thai tourism sector. Tourism is the most
important segment of the economy by generating over 10% of the
GDP.
 Thai consumers view
U.S. originated food products as being of high quality and safe.
The consumers are very price conscious. In Bangkok, 70% of the
population shops at a hypermarket or supermarket, but most still
purchase meat and produce at local wet markets. Outside of Bangkok,
20% of the population shop at hypermarkets and supermarkets.
Thank you to Mark Fischer, IDED, for his
assistance in the development of this article.
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 Through the use of Pork Checkoff funds,
the IPPA Foreign Market Development Committee maintains a membership
with the United States Meat Export Federation (USMEF) to continue
building partnerships with major importing countries, like Japan,
Mexico and Canada.
The USMEF is a
non-profit trade association working to create new opportunities
and develop existing international markets for U.S. beef, pork,
lamb and veal. Headquartered in Denver, USMEF has offices in Seoul,
Tokyo, Osaka, Hong Kong, Shanghai, Singapore, Taipei, Moscow,
St. Petersburg, Mexico City and London. USMEF also has special
market representatives covering China, Europe, the Middle East,
Central and South America and the Caribbean.
This worldwide
network of offices has forged a series of partnerships which have
ensured that USMEF, U.S. companies and U.S. products have become
integral parts of international red meat markets. An extensive
international presence allows USMEF to have a finger on the pulse
of vital markets from Moscow to Singapore. USMEF shares its local
intelligence and two decades of experience with U.S. exporters,
traders, buyers, end users and processors in each market.
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