Tags: trade | china | pork | usda | tariffs | donald trump

US Hog Farmers Could Get Squeezed in China Trade Dispute

a hog in iowa gets bathed.
(Photo by Scott Olson/Getty Images)
 

By    |   Thursday, 18 October 2018 04:41 PM

American pork is falling victim to the ongoing trade dispute with China, where the world’s biggest appetite for pork could be filled by hog farmers in Europe and South America, the Wall Street Journal reported.

China’s tariffs on U.S. pork have soared as high as 70 percent, the Journal reported — raising the prospect of a realignment in the global supply chain that’ll hit U.S. hog farmers hard, the news outlet reported.

And China’s efforts to buy low-cost pork from other countries suggest the United States may have to cut prices to keep its sales overseas, the Journal reported.

“Only the most competitive will survive,” Ernest Xargayo, export manager for pork processor Costa Brava in Spain, told the Journal.

In Argentina, government officials are working out an agreement to ship pork to China by the end of this year, Guillermo Proietto, representative manager for Argen Pork, a farmer-owned cooperative, told the Journal.

And Pablo Alvarez, who manages exports for Chile-based Coexca SA, wakes at 5 every morning to respond to a growing number of WeChat messages, emails and voice mails from China-based pork buyers, the Journal reported.

Though farmers in China will rear about 708 million hogs this year, the U.S. Department of Agriculture estimates, it won’t be enough for the nation’s appetite, the Journal reported.

Chinese consumers eat 123 billion pounds of pork annually, and pork imports swelled to 3.6 billion pounds last year, nearly 10 times more than a decade ago, according to the USDA, the Journal noted.

“If the pork industry is going to be viable as a successful and growing industry, China’s critical,” Steve Rommereim, a South Dakota hog farmer and president of the National Pork Board, told the news outlet.

But China’s tariffs on U.S. pork—a 25 percent duty in April, followed by a second duty in July, on top of existing import charges—have called the future of the U.S.-China pork trade into question. 

“For us, it’s definitely good news,” Grant Gouws, an account representative for Elfering Export GmbH in Germany told the Journal. "As soon as the [tariffs] came on, that definitely turned things around.”

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American pork is falling victim to the ongoing trade dispute with China, where the world's biggest appetite for pork could be filled by hog farmers in Europe and South America, the Wall Street Journal reported.
trade, china, pork, usda, tariffs, donald trump
350
2018-41-18
Thursday, 18 October 2018 04:41 PM
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