In this file:
· China blinks in trade war as pork prices spiral out of control
Record high pork prices may be behind China's latest trade concession…
· China adds US agricultural products to tariff exemptions ahead of trade talks
· Thanks to Swine Fever, Pork Is Wildly Expensive in China
China blinks in trade war as pork prices spiral out of control
By Jonathan Garber, FOXBusiness
September 13, 2019
Record high pork prices may be behind China's latest trade concession.
Chinese state-run news agencies said Friday morning that U.S. pork and soybeans will be exempt from additional tariffs. Soybeans make up a large portion of a pig’s diet.
“Based on what I know, Chinese govt encourages Chinese companies to buy certain amount of US farm products, including soybeans and pork, which will also be exempted from additional tariffs,” tweeted Hu Xijin, editor in chief of the state-run Global Times.
Friday’s announcement may seem like a trade concession from China, but there are other forces also at play.
African swine fever has swept across China, causing a 32.2 percent year-over-year drop in the number of live pigs, a Hong Kong-based research team at Citi said in a note sent to clients on Thursday.
They added that the depleted supply caused pork prices to soar by a record 23 percent month-over-month in August to an all-time high of 36 yuan per kilogram in early September, up 76 percent this year.
China is the world’s largest consumer of pork, accounting for 49.3 percent of global consumption, Citi says. Pork makes up 75.4 percent of China’s meat consumption.
“Understanding China’s hog cycle is important, because it matters for both inflation dynamics and social stability and therefore can influence policy actions,” the analysts said.
Beijing has announced several measures to try and contain runaway prices.
On Monday, the Chinese government announced it would offer subsidies of up to 5 million yuan ($700,000) for the construction of large-scale pig farms. Some environmental restrictions were recently removed to encourage more farming.
China’s problems are expected to get worse before they get better.
“Intervention by China’s government to halt the spread of African Swine Fever (ASF) and mitigate its impact on pork prices is proving ineffective,” wrote Singapore-based Capital Economics Senior China Economist Julian Evans-Pritchard on Friday...
China adds US agricultural products to tariff exemptions ahead of trade talks
o The Chinese Ministry of Commerce said it will exempt U.S. agricultural products such as soybeans and pork from additional tariffs.
o These farm goods add to 16 types of U.S. products that will be exempt from tariffs.
o The exemption will be valid for a year through to September 16, 2020.
o China said it welcomed President Donald Trump’s decision to delay tariffs by two weeks.
Yun Li, CNBC
Sept 13, 2019
China plans to exclude American farm goods, including soybeans, from tariffs in the latest move to ease trade tensions before the two countries restart trade talks next month.
The Chinese Ministry of Commerce said Friday China welcomed President Donald Trump’s decision to delay tariffs by two weeks and said it will exempt U.S. agricultural products such as soybeans and pork from additional tariffs.
These farm goods add to 16 types of U.S. products that will be exempt from tariffs.The exemption will be valid for a year through to September 16, 2020.
The move came after Trump said Thursday he would consider an interim trade deal with China, even though he would not prefer it.
China’s agriculture buying has been a sticking point in the trade battle as Trump has repeatedly accused China of not following through on its promises…
Thanks to Swine Fever, Pork Is Wildly Expensive in China
The country is reeling.
Dan Nosowitz, Modern Farmer
Sep 12, 2019
Pork is a very, very big deal in China.
China consumes roughly half of the world’s pork, despite having only about 18.5 percent of the its population. It is by far the country’s most-consumed meat. This means that when China runs into a gigantic problem with their pork industry, the effects can be huge.
According to recent reports, pork prices have dramatically spiked: almost 50 percent more expensive, year over year, in August, according to CNBC. This is due largely to an outbreak of African swine fever, which has forced the slaughter of millions of infected (or potentially infected) hogs.
African swine fever is a spectacularly deadly disease for domestic hogs, with some varieties causing near-certain death in as little as a week. Originally, African swine fever was a non-deadly disease affecting wild relatives of the domestic pig, like the warthog. But thanks to globalization, nothing stays localized for long. African swine fever first showed up in China last August; the country quickly tried to restrict the movement of hogs within China in order to stop the spread, but within months, it could be found throughout.
China has so far had to cull about 100 million hogs, according to the Chinese agricultural ministry’s reports. This has sent shockwaves throughout national and global agriculture. China has set up rationing systems for pork, has tried to artificially depress the prices through subsidies, and is now attempting to ramp up a program to allow farmers to replenish their stocks.
CNN recently reported that some municipalities have been forced to tap into their reserves of frozen pork. The ruling Communist party’s newspaper even published a story trying to convince people to eat less pork, stating that it is “very high in fat and cholesterol.”
Other pork producing countries, though, see an opportunity to make inroads in China. Imports from Europe (Denmark, Spain, Portugal) and, especially, from Brazil have increased. That growth has been modest, so far; the South China Morning Post says there has only been about a 12 percent increase in pork imports this year. But that’s an effect from the release of the frozen pork reserves; once those are tapped, China will have to look elsewhere to fill its demand.
And what about the United States? The US is the largest pork-exporting country in the world. But in retaliation for Trump administration tariffs, China has had taxes on imported American pork for months...