US pork producers lose $2.2bn due to trade dispute with China

The US National Pork Producers Council (NPPC) has urged for a quick resolution to the trade dispute between the US and China as US pork producers have incurred a loss of $2.2bn on an annualised basis since the beginning of the disagreement.

The dispute primarily relates to China’s 25% punitive tariffs on pork products that were implemented in retaliation to US tariffs on aluminium and steel.

A rapid resolution is expected to increase US pork exports to China, which is currently the world’s largest pork-consuming nation.

National Pork Producers Council president Jim Heimerl said: “US pork has invested significantly to ramp production to capitalise on growth opportunities around the world, including China and other markets throughout the Asia-Pacific region.

“We applaud the administration for making the expansion of agriculture exports a cornerstone of the discussions with China.

“We hope the next round of trade talks with China results in improved market access to a critical export market for US pork and other farm products.”

NPPC noted that the uncertainty in the export market comes at a time when the US pork industry is expanding its production to record levels.

A total of five additional new pork processing plants are set to open or have recently opened, which will increase the country’s pork production capacity by approximately 10% from 2015 levels during 2019.

According to the council, pork exports have accounted for more than $53 of the average $149 value of a hog in 2017, in addition to supporting more than 110,000 jobs.

The US has been, on average, the top global supplier of pork for more than a decade.

Heimerl further added: “We produce the safest, highest-quality and most affordable pork in the world.

“We are dependent on exports and are one of the few sectors of the US economy that can immediately reduce the trade imbalance with China, where pork represents approximately 10% of the consumer price index.

“Eliminating punitive tariffs and improving access to China by eliminating or reducing tariffs on frozen and chilled pork would result in an explosion of pork exports, contributing significantly to US economic growth and reduction of the trade deficit.”