Prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The Market Update draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA NASS and AMS reports.
Pork
According to last week’s announcement, pork and pigs traded between the U.S., Canada, and Mexico would remain at current zero-tariff levels as per the USMCA agreement. This will likely cause little impact on pork and hog supply from Canada as well as export sales to Mexico. Mexico remains the top customer for U.S. pork. An additional 10% tariff was placed on U.S. pork by China on March 10, increasing the effective tariff rate to 47%. Additional tariffs were scheduled to go into effect on April 10, bringing the total tariff rate on U.S. pork and pork variety meat to 81%. U.S. Secretary of Agriculture Brooke Rollins has stated a trade agreement could be reached with China as early as the end of this week.
February pork exports were 4% lower than last year with value 2% lower. Year-to-date exports were 3% lower than 2024. Pork export value per head slaughtered equated to $66.07 in February. Last week’s estimated harvest of 2.52 million head was 40,000 more than the prior week and 112,000 more than last year. The pork cutout value was $1.04 lower, averaging $95.35.
Lamb
The U.S. imported 309.3 million pounds of lamb in 2024, 99% of it from Australia and New Zealand. Lamb from those two countries is now subject to a 10% tariff. The move is applauded by the American Sheep Industry Association. U.S. lamb production under federal inspection last year totaled 133.6 million pounds. This means for every pound produced domestically, over two pounds is imported. The month-long Ramadan holiday ended on March 29. The period brought increased demand and higher prices for light market lambs. Market lambs at auction were steady to $35/cwt lower last week. Easter helps lamb demand, but the impact is far less than Ramadan. The lamb cutout value was $4.37 higher last Friday at $459.58. Estimated harvest was 42,000 head, 1,000 more than the previous week and 4,000 more than last year. Shorn lambs brought $215-$240/cwt with light market lambs sharply lower, selling to $250/cwt.
