In this file:
· Pork sector struggles with Chinese ban
· Trade Dispute Heightens Risk of Long Term Erosion of Chinese Pork Market
Pork sector struggles with Chinese ban
Business to China was booming in the first half of 2019. That all came to a grinding halt on June 25 when China discovered a fraudulently certified shipment of Canadian pork.
By Sean Pratt, The Western Producer (Canada)
September 12, 2019
Canada’s pork sector was drawn to China like a moth to fire but is now getting singed by the flames.
Business to China was booming in the first half of 2019. It rapidly became Canada’s top export market by volume in the wake of the devastation caused to China’s hog herd by African swine fever.
That all came to a grinding halt on June 25 when China discovered a fraudulently certified shipment of Canadian pork.
Rick Bergmann, chair of the Canadian Pork Council, used the fire analogy to describe the plight of hog producers.
“Right now we’re uncomfortably warm in this situation,” he said.
Packers and processors are also feeling the heat.
“It’s certainly a struggle from our side as well,” said Chris White, president of the Canadian Meat Council.
China paid good money for hard-to-sell products like pig heads and intestines. It is proving exceedingly difficult to replace that market.
“If you haven’t identified a (replacement) market then that product becomes effectively useless and it is just used for rendering,” said White.
Packers, processors and producers are all seeking compensation from the federal government for their losses. Producers want $260 million in direct payments. Packers and processors are seeking another $100 million.
Federal Agriculture Minister Marie-Claude Bibeau dodged a direct question asking for a response to the requests for aid.
“Canada’s focus is on working with China to reassure them of the integrity of Canada’s certification process and to resume exports of meat products,” she said in an email.
“(Canadian Food Inspection Agency) officials continue to engage with Chinese officials to resolve this issue as soon as possible.”
Bibeau said a pork and beef government-industry working group has been established to devise strategies to strengthen the sector and explore alternative markets.
In the meantime, Canadian producers are being hurt by slumping pork prices that are inextricably tied to United States prices. Those values have been plummeting in the midst of the trade war between the U.S. and China.
Canadian farmers are frustrated that their counterparts in the European Union and Brazil are filling the massive void in Chinese pork production and reaping the rewards of escalating prices.
Canada was one of the exporters that had been benefiting from the devastation African swine fever has caused to China’s hog sector.
Rabobank estimates half of China’s hog herd will be lost in 2019 and that there will be a 25 percent drop in pork production this year. It is forecasting a further 10 to 15 percent decline in pork production in 2020.
The Chinese government says it has lost more than 100 million hogs to the disease.
According to the Dim Sums blog, the Chinese government estimates...
Trade Dispute Heightens Risk of Long Term Erosion of Chinese Pork Market
Nick Giordano - National Pork Producers Council
Farmscape for September 13, 2019
The National Pork Producers Council warns the longer Chinese tariffs on U.S. pork remain in place, the more difficult it will be to recover market share lost in that country.
Although African Swine Fever has devastated Chinese pork production resulting in a dramatic increase in Chinese pork prices, the United States has been shut out of that market as the result of Chinese tariffs on U.S. pork.
The impact of the U.S. China trade dispute was among the topics discussed yesterday as part of a National Pork Producers Council media briefing.
NPPC spokesman Nick Giordano told reporters Iowa State University estimates the dispute is costing U.S. producers eight dollars per hog and that number could grow.
Clip-Nick Giordano-National Pork Producers Council:
The analysts believe that 50 percent of Chinese production is out.
That's the biggest pork producer in the world so China is obviously going to import more pork.
You've seen the articles, they're concerned about food price inflation.
They're going to import more pork and more meat protein.
The question is who's going to benefit?
Going back two years ago, further than that, under those economic conditions without the trade frictions, unequivocally the United States would be the principle beneficiary.
But given the uncertainty surrounding the U.S. China trade dispute we just don't know.
Clearly there's upward pressure on global pork and meat prices worldwide because if you pull that much meat protein out of the global meat complex it creates upward pressure on prices.
Who's going to benefit and how much, we don't know.
Our great concern is, the longer this goes on, the less we benefit, the more places like Brazil and Europe and competing areas expand their production.
They get more of the Chinese market and then that competition presumably we've got to compete with over the long haul.