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
Packer margins are reported to be in the black, even amid declining pork cut-out values and higher cash prices. Last week’s estimated harvest of 2.418 million was 120,000 head fewer than the week prior. It was 22,000 fewer than the same week last year. The smaller harvest amounted to 27.6 million pounds less pork production compared to the week before. The pork cutout value was 24 cents lower last week, averaging $97.78. Pork exports totaled 243,965 metric tons in January, 3% lower from a year ago, while value eased 2%.
Shipments soared to Central America and continued to trend higher to leading market Mexico. China has increased tariffs on U.S. pork by 10%. Pork exports to China have declined in 2024, but Dr. Lee Schulz, Chief Economist with Ever.Ag’s Livestock Risk Management Team, points out it is important to note the type of pork products sent there. In a National Hog Farmer article, Schulz said total U.S. pork exports to China in 2024 were 5.9% lower at 467,227 metric tons, while value fell 10.4% to $1.11 billion. This included 321,719 metric tons of pork variety meat, which is more than half of the U.S. industry’s global pork variety meat export volume, valued at $764.8 million. “U.S. pork exports returned $66.53 per head value for each hog processed in 2024 according to data released by USDA and compiled by the U.S. Meat Export Federation. Pork variety meat exports accounted for $10.02 of that,” Schulz wrote. Variety meats comprise products not sought out by the American consumer such as tongues, livers, intestines, hearts, and feet.
Lamb
The cash lamb market was steady to $20/cwt lower last week. The lamb cutout was $6.22 lower at $457.83 last Friday. Last week’s estimated harvest was 39,000 head, making it 1,000 more than the prior week and 5,000 fewer than last year. January exports of U.S. lamb fell 7% from a year ago, while value was down 1%. Muscle cut exports increased slightly in both volume and value, led by growth in Mexico, Trinidad and Tobago, and the Netherlands Antilles. Shorn lambs brought $150-$190/cwt with some selling to $200/cwt and up.
