Tag Archives: Pork

Expanding U.S. export markets is vital to the success of American pork producers, but trade disputes with some of our top markets, most notably China, are hampering growth and have caused severe financial harm to U.S. hog farmers, National Pork Producers Council Vice President and Counsel of Global Government Affairs Nick Giordano said today at a Global Business Dialogue event in Washington, D.C.

“Mostly because of free trade agreements, the United States is the leading global exporter of pork. As a result, U.S. pork is an attractive candidate for trade retaliation. America’s hog farmers – and many other sectors of U.S. agriculture – have been at the tip of the trade retaliation spear for more than a year,” Giordano explained to the briefing at the National Press Club.

 

While Mexico’s 20 percent retaliatory tariff on U.S. pork was recently lifted, America’s producers still face a stifling 62 percent tariff into China. There are enormous trade opportunities with China, especially to help offset reduced domestic production due to African swine fever (ASF), a pig-only disease with no vaccine treatment that poses no human health or food safety risks, but that is almost always fatal for hogs, Giordano noted.  ASF has spread to every province in China, other parts of Asia and in Europe.

Giordano said NPPC is working with the U.S. Department of Agriculture and Customs and Border Protection to strengthen biosecurity at our borders and on our farms to prevent its spread to the United States.

“We have always known that China holds more potential than any market in the world for increased U.S. pork sales. But, today, because of African swine fever, that potential is off the charts, offering the single greatest sales opportunity in our industry’s history,” said Giordano. “China needs reliable suppliers of pork now, and likely, well into the future. The question U.S. hog farmers are asking: ‘Will we get the main course, or will we get the crumbs off the table?'”

“For most of the last year, the U.S. pork industry has the dubious distinction of being on three retaliation lists: China and Mexico related to U.S. actions under Section 232 of the Trade Expansion Act of 1962 and China in response to U.S. tariffs imposed under Section 301 of the Trade Act of 1974,” Giordano said. Last year, Mexico was the industry’s largest volume market and China was the third top market by volume, although punitive tariffs imposed by those two countries have cost U.S. pork producers $2.5 billion over the last year.

“U.S. pork production costs are among the lowest in the world with safety and quality that are second to none. But for the retaliatory duties, the United States would be in a perfect position to take advantage of this massive import surge in the world’s largest pork-consuming nation and single handedly put a huge dent in the U.S. trade imbalance with China,” Giordano said. Instead, Chinese pork buyers are reaching out to those in Europe, Canada and Brazil for supplies. “What should have been a time of enormous prosperity and growth for U.S. pork producers and their suppliers will instead fuel jobs, profits and rural development for our competitors,” he noted.

“U.S. hog farmers understand the challenges faced by this administration in recalibrating U.S. trade policy toward China. The issues are myriad and complex. Moreover, hog farmers appreciate the farmer aid packages that the administration has put forward,” Giordano continued. “However, the China pork tariff needs to be lifted.”

Giordano’s full remarks can be read here.

April exports of U.S. beef and pork were lower than a year ago while U.S. lamb exports continued their upward trend, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Beef exports totaled 105,241 metric tons (mt) in April, down 5% year-over-year, though export value was down only slightly at $674.2 million. For January through April, exports were 4% below last year’s record pace in volume (412,547 mt) and 1% lower in value ($2.58 billion).

On a per-head basis, beef export value per head of fed slaughter averaged $305.61 (down 7% from April 2018). The January-April average was $308.34 per head, down 3% from a year ago. April exports accounted for 12.5% of total U.S. beef production and 10.2% for muscle cuts only, down from 14.1% and 11.3%, respectively, a year ago. For January through April, these ratios were 12.7% and 10.2% (down from 13.4% and 10.8%).

Pork exports totaled 216,757 mt in April, down 6% from a year ago, valued at $535.2 million (down 8%). January-April exports were also 6% below last year’s pace in volume (817,025 mt) and were down 12% in value to just over $2 billion.

Pork export value averaged $50.58 per head slaughtered in April, down 13% from a year ago but the highest in 10 months. For January through April, export value averaged $47.25 per head, down 15% from the same period last year. April exports accounted for 26.6% of total U.S. pork production and 23.3% for muscle cuts only – down from 29.9% and 25.8%, respectively, in April 2018. January-April exports accounted for 24.9% of total pork production (down from 27.4%) and 21.8% for muscle cuts (down from 23.7%).

Beef demand strong in Korea and Taiwan; Japan edges lower

South Korea remains the export growth leader for U.S. beef, with April volume up 18% to 22,584 mt. April value surged 22% to $164.3 million, surpassing Japan as the month’s leading value market. January-April exports to Korea were 11% ahead of last year’s record pace in volume (78,757 mt) and climbed 15% higher in value ($578.5 million). U.S. share of Korea’s total beef imports climbed to 47.5%, up a full percentage point from last year. U.S. share of Korea’s chilled beef imports reached 60%.

Taiwan is also coming off a record year for U.S. beef exports and posted a strong April at 5,118 mt (up 15% from a year ago) valued at $47.9 million (up 14%). Through April, exports to Taiwan totaled 18,605 mt (up 6%) valued at $165.6 million (down 2%).

In Japan, where all of U.S. beef’s major competitors have gained tariff relief in 2019, April exports were down 6% from a year ago in both volume (24,149 mt) and value ($156.8 million). Export volume through April was steady with last year’s pace at 98,296 mt while value increased 2% to $637.2 million. U.S. market share in Japan is still more than 41%, but this is down from nearly 45% in the first four months of 2017. For chilled beef, U.S. share has slipped two percentage points to 47.4%. In April, Japan’s imports from Mexico more than tripled year-over-year and imports also increased from Canada (up 52%), New Zealand (up 41%) and Australia (up 9%) as competitors of U.S. beef benefited from lower tariff rates.

“U.S. beef is holding its own in Japan, but the April numbers are telling,” cautioned USMEF President and CEO Dan Halstrom. “With the April 1 rate cut, Australian, Canadian, New Zealand and Mexican beef are now subject to a 26.6% duty while the rate for U.S. beef remains at 38.5%. It is absolutely essential that the U.S. secures an agreement that will level this playing field. U.S. beef’s exceptional growth in Korea is a great example of what’s possible when tariffs are less of an obstacle.”

Other January-April highlights for U.S. beef include:

  • Beef exports to Mexico continue to post strong results, especially for muscle cuts. Combined beef/beef variety meat exports through April were 2% below last year’s pace at 76,870 mt, but value increased 9% to $372.4 million. For muscle cuts only, exports to Mexico climbed 8% from a year ago in volume (47,379 mt) and 11% in value ($293.3 million).
  • Strong growth in the Philippines fueled a 20% increase in beef exports to the ASEAN region as volume reached 17,770 mt, valued at $86.9 million (up 6%). Export volume also trended higher to Indonesia and Vietnam.
  • An exceptional performance in the Dominican Republic is fueling a strong year for U.S. beef in the Caribbean. Exports to the Dominican Republic soared 56% above last year’s pace in volume (3,068 mt) and 50% higher in value ($25 million). The Caribbean was up 16% in volume (9,826 mt) and 18% in value ($65.2 million) with exports also trending higher for Jamaica and the Bahamas.
  • Exports to Hong Kong slipped 36% from a year ago in volume (27,825 mt) and were 29% lower in value ($236.6 million). Despite a 25% retaliatory duty, U.S. beef exports to China increased 5% to 2,417 mt, but value was down 15% to $18.2 million as most of the tariff cost was borne by U.S. suppliers. China’s beef imports already eclipsed $2 billion through the first four months of this year, up 54% from last year’s record pace, but the U.S. holds less than 1% of China’s booming beef import market.
  • Exports to Canada were down 15% in volume to 31,070 mt and 14% in value to just under $200 million. Demand has been impacted by larger Canadian beef production in 2019, but elimination of the 10% retaliatory duty on prepared beef products from the U.S. will help exports in this important category rebound.

Latin America, Oceania, Taiwan bolster pork exports

On May 20, the 20% retaliatory duty on most U.S. pork entering Mexico was removed, as the U.S., Mexico and Canada reached an agreement on steel and aluminum tariffs. This was obviously too late to boost April pork exports to Mexico, which sank 30% from a year ago in volume (54,971 mt) and 29% in value to $94.5 million. For January through April, exports to Mexico were down 18% in volume (232,391 mt) and 29% in value ($356.5 million).

“Lifting of Mexico’s retaliatory duties was the most welcome news the U.S. pork industry has received in a long time,” Halstrom said. “Now let’s hope the duty-free access U.S. pork has enjoyed in Mexico since late May isn’t short-lived.”

President Trump has proposed a 5% tariff on all goods imported from Mexico unless more steps are taken to curb illegal migration at the U.S.-Mexico border. The tariff would take effect June 10 and increase to 25% by Oct. 1, but negotiations are ongoing and Mexico has not yet announced any retaliatory measures.

U.S. pork also faces a significant disadvantage in China, where retaliatory duties remain in effect and competitors are positioning to fill China’s looming African swine fever-driven pork shortfall. January-April exports to China/Hong Kong were 16% below last year’s pace in volume (128,200 mt) and down 32% in value ($242 million).

Leading value market Japan has not imposed any new tariffs on U.S. pork but its main competitors (European, Canadian and Mexican pork) have gained tariff relief in 2019. January-April exports of U.S. pork to Japan were down 7% from a year ago in volume (123,166 mt) and fell 9% in value ($493.3 million), as U.S. share of Japan’s total imports fell from 36% last year to 32%. The sharpest decline was in Japan’s imports of U.S. ground seasoned pork, which were down nearly $40 million.

January-April highlights for U.S. pork include:

  • A strong performance in mainstay market Colombia and excellent growth in Chile and Peru drove exports to South America 44% above last year’s record pace in volume (57,005 mt) and 42% higher in value ($136.9 million). In Colombia, where USMEF has helped bolster demand for U.S. pork through promotional campaigns, educational seminars and enhanced efforts to overcome technical barriers, exports climbed 25% from a year ago to 37,283 mt valued at $79.6 million (up 17%). Last year, even with domestic production on the rise, the Colombian market took more than $215 million in U.S. pork, more than double the value exported in 2016.
  • Exports to Central America are also coming off a record year in 2018 and climbed 11% in volume (29,321 mt) and 8% in value ($68.3 million), led by growth in Guatemala, Panama and Costa Rica.
  • April exports to Australia were the largest of 2019, pushing January-April volume to 37,979 mt (up 37% from last year’s record pace) valued at $98.6 million (up 21%). Exports to New Zealand are also performing extremely well in 2019, climbing 53% in volume (3,390 mt) and 36% in value ($10.1 million). Oceania is a strong region for U.S. hams used for further processing, which is especially important at a time when ham exports to Mexico and China were being pressured by tariffs.
  • Despite facing ractopamine-related restrictions in Taiwan, exports increased 80% in volume (8,819 mt) and 55% in value ($19.3 million). Exports to Taiwan slumped in 2016 but have been rebounding over the past 2½ years.

Momentum continues to grow for U.S. lamb

Strong variety meat demand in Mexico and muscle cut growth in the Caribbean, the Middle East and Panama have fueled an upward trend in U.S. lamb exports. April exports totaled 1,227 mt, up 26% from a year ago, while value was up 15% to $2.2 million. For January-April, exports were up 56% year-over-year in volume (5,400 mt) and up 26% in value ($9.1 million). Muscle cut exports were up 17% in volume to 828 mt and climbed 19% in value to $5.4 million.

Complete January-April export results for U.S. beef, pork and lamb are available from USMEF’s statistics Web page.

Monthly charts for U.S. pork and beef exports are also available online.

 In response to President Trump’s plan to impose five percent tariffs on all Mexican imports as of June 10, 2019, David Herring, president of the National Pork Producers Council and a pork producer from Lillington, North Carolina, issued the following statement:

“We appeal to President Trump to reconsider plans to open a new trade dispute with Mexico. American pork producers cannot afford retaliatory tariffs from its largest export market, tariffs which Mexico will surely implement. Over the last year, trade disputes with Mexico and China have cost hard-working U.S. pork producers and their families approximately $2.5 billion.

“Let’s move forward with ratification of the United States-Mexico-Canada trade agreement, preserving zero-tariff pork trade in North America for the long term; complete a trade agreement with Japan; and resolve the trade dispute with China, where U.S. pork has a historic opportunity to dramatically expand exports given the countries struggle with African swine fever.

“We hope those members of Congress who are working to restrict the administration’s trade relief programs take note. While these programs provide only partial relief to the damage trade retaliation has exacted on U.S. agriculture, they are desperately needed. We need the full participation of all organizations involved in the U.S. pork supply chain for these programs to deliver their intended benefits.”

For most of the last year, U.S. pork producers have lost $12 per hog due to trade retaliation by Mexico, which was lifted last week, according to Iowa State University Economist Dermot Hayes. Dr. Hayes projects that the U.S. pork producers will lose the entire Mexican market, one that represented 20 percent of total U.S. pork exports last year, if they face protracted retaliation. As of April 1, 2019, the value of U.S. pork exports to Mexico were down 28 percent from the same period last year.

The U.S. Department of Agriculture today announced the appointment of five members to the National Pork Board. Bill Luckey of Columbus, Nebraska was among those selected and will serve a three-year term.

Other appointed members are: Russell A. Nugent III, Lowell, Ark.; Gene Noem, Ames, Iowa; Alicia Pedemonti, Hopkinton, N.H.; and Michael P. Skahill, Williamsburg, Va.

The National Pork Board is composed of 15 pork producers nominated by the National Pork Producers Delegate Body, which is made up of 132 producer and importer members.

Bill Luckey owns a wean-to-finish operation in Columbus, Nebraska where he also holds partial ownership of a sow farm. Bill is responsible for the daily care of 740 nursery pigs and 1,400 finisher pigs.  In addition, his family operates a 2,000 head custom contract finisher. They market 10,000 pigs annually. Bill also raises corn, soybeans and cattle on 700 acres.

Bill is currently serving on the board of directors for the Swine Health Information Center. He has also been active on numerous National Pork Board committees and currently serves as chairman of the International Marketing Committee. In addition, has given over 50 speeches as an Operation Main Street 2.0 speaker.

Previously, Bill served on the National Pork Producers Council board of directors from 2008-2014 and on the Nebraska Pork Producers Association (NPPA) board of directors from 2001-2007 where he was president from 2006-2007. NPPA President,

Tim Chancellor offered his congratulations stating, “It gives me great pleasure to extend my warmest congratulations to Bill on his appointment to the National Pork Board. I am confident that Bill will continue his unwavering dedication to the pork industry.”

The program was created and is administered under the authority of the Pork Promotion, Research, and Consumer Information Act of 1985. It became effective September 5, 1986, when the Pork Promotion, Research, and Consumer Information Order was implemented. Assessments began Nov. 1, 1986.

Since 1966, Congress has authorized the development of industry-funded research and promotion boards to provide a framework for agricultural industries to pool their resources and combine efforts to develop new markets, strengthen existing markets, and conduct important research and promotion activities. The Agricultural Marketing Service (AMS) provides oversight of 22 boards, paid for by industry assessments, which helps ensure fiscal accountability and program integrity.

Arkansas-based meat processor Tyson Foods is suing a federal agency for $2.4 million, saying it had to destroy 8,000 carcasses because a federal meat inspector lied about checking hogs at a plant in Iowa.

Yolanda Thompson, who works for the U.S. Department of Agriculture’s Food Safety Inspection Service, signed certificates suggesting she had checked slaughtered hogs at the Storm Lake plant in March 2018, Tyson said. The company noted that video footage indicated Thompson never entered the plant and actually approved the inspections while sitting in her automobile.

Tyson filed suit Tuesday in the U.S. District Court in Sioux City alleging the USDA and Food Safety Inspection Service knew of Thompson’s inadequate inspection practices and physical difficulties walking around the plant, the Sioux City Journal reported.

“The United States should have recognized Thompson’s unfitness to perform the inspections that were necessary for the protection of Tyson’s property. However, the United States failed to so recognize, resulting in the destruction of approximately 8,000 hog carcasses, causing injury to Tyson,” the company said in the lawsuit.

Inspectors are mandated to visually examine all hogs slaughtered at the plant to decide whether they have health conditions that could make them unsuitable for human consumption.

On March 26, 2018, Tyson killed roughly 4,622 hogs at the Storm Lake plant, and Thompson gave signed inspection cards to plant supervisors. The lawsuit states that plant administrators were told by Food Safety staffers the next day that Thompson had not executed the inspections. On March 30, 2018, the USDA declared that it was not feasible to determine whether the hogs that had not been checked were subject to any health conditions that would have led to disapproval of the carcasses.

Tyson had no choice but to destroy about 8,000 carcasses, which included the inspected and uninspected, the lawsuit said.

USDA and Tyson officials declined to comment.

WASHINGTON, D.C., May 10, 2019 – The Trump administration today indicated it is planning a trade relief package in response to the U.S. trade dispute with China. The following statement may be attributed to David Herring, a pork producer from Lillington, North Carolina and president of the National Pork Producers Council:

“U.S. pork has suffered from a disproportionate share of retaliation due to trade disputes with Mexico and China. This retaliation turned last year — which analysts had forecast to be profitable — into a very unprofitable time for U.S. pork producers. The financial pain continues; the 20% punitive tariff on pork exported to Mexico alone amounts to a whopping $12 loss per animal.

“While there is no substitute for resolving these trade disputes and getting back to normal trade, NPPC welcomes the offer of assistance from President Trump. We stand ready to work with the USDA to facilitate U.S. pork exports as food aid to a number of nations. This assistance should not cannibalize commercial trade. Rather, it should help people in need who otherwise would not have access to this high-quality U.S. protein.

“Pork producers have been innocent bystanders in these trade disputes. Unlike most of the population, they have suffered severe economic dislocations as a result of trade disputes.  It is fair and right that the U.S. government purchase significant quantities of pork over the next 18 months to ship as food aid to help ease the financial burden placed on producers.”

For the first quarter of 2019, U.S. beef exports were slightly below last year’s record pace while pork exports continued to be slowed by trade barriers, according to March data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). U.S. lamb exports were a first quarter bright spot, trending significantly higher than a year ago.

March beef exports totaled 107,655 metric tons (mt), down 4% year-over-year, while value fell 2% to $678 million. For the first quarter, exports were down 3% at 307,306 mt valued at $1.9 billion (down 0.8%).

March beef exports were very strong on a per-head basis, with export value per head of fed slaughter averaging $335.81 – up 1% from a year ago and the highest since December. The first quarter average was $309.32/head, down 2% from a year ago. March exports accounted for 13.6% of total U.S. beef production and 11% for muscle cuts only, which was fairly steady with last March. For the first quarter these ratios were 12.9% and 10.2%, down from 13.2% and 10.7%, respectively, a year ago.

Pork exports totaled 211,688 mt in March, down 7% from a year ago, valued at $520.7 million (down 15%). First quarter exports were 6% below last year’s pace in volume (600,268 mt) and down 14% in value ($1.47 billion).

Pork export value averaged $48.55 per head slaughtered in March, down 15% from a year ago. For January through March, export value averaged $46.15 per head, down 16% from the first quarter of 2018. March exports accounted for 25.6% of total U.S. pork production and 22.7% for muscle cuts only – down from 27.5% and 23.5%, respectively in March 2018. First quarter exports accounted for 24.4% of total pork production (down from 26.6%) and 21.3% for muscle cuts (down from 23%).