In this file:
· NPPC Statement on China Market Access
· ‘Let U.S. Pork Producers Help Chinese People,’ NPPC Says
· Trade Dispute Heightens Risk of Long Term Erosion of Chinese Pork Market
NPPC Statement on China Market Access
Sep 13, 2019
WASHINGTON, D.C., Sept. 13, 2019 – This morning, Chinese media reported that it was suspending the imposition of punitive tariffs on U.S. pork imports. The following is a statement from National Pork Producers Council President David Herring, a pork producer from Lillington, N.C.:
"If media reports are accurate, this is a most welcome development. The Chinese have placed punitive tariffs of 60% on most U.S. pork products, bringing the effective tariff rate on most U.S. pork to 72%.
"According to Iowa State University economist Dermot Hayes, the Chinese retaliation on U.S. pork has shaved $8 off the price of every hog sold in the United States for well over a year. Most of our competitors face only a 12% tariff on their pork exports to China. Pork is somewhat unique given that it is the most important protein consumed in China, accounting for a significant part of the consumer price index.
"Additionally, pork is in short supply in China because African swine fever has ravaged the Chinese hog herd and significantly reduced the production of pork. When you consider that China is the largest producer and consumer of pork in the world, the importance of this market to U.S. pork producers is clear. U.S. pork exports could single handedly make a huge dent in the trade imbalance with China. We are hopeful that this apparent gesture of goodwill by China leads not only to more sales of U.S. pork, but that it contributes to a resolution of U.S.-China trade restrictions."
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NPPC is the global voice for the U.S. pork industry, protecting the livelihoods of America's 60,000 pork producers, who abide by ethical principles in caring for their animals, in protecting the environment and public health and in providing safe, wholesome, nutritious pork products to consumers worldwide. For more information, visit www.nppc.org.
‘Let U.S. Pork Producers Help Chinese People,’ NPPC Says
Rhonda Brooks, FarmJournal's Pork
September 12, 2019
The ongoing struggle China has confining and preventing African swine fever (ASF) could increase market opportunities for U.S. pork producers, according to the National Pork Producers Council (NPPC).
“It’s unfortunate for Chinese consumers and producers; we feel for them,” said David Herring, during a NPPC press briefing in Washington, D.C., on Thursday. Herring, a hog farmer from Lillington, N.C., is president of the organization.
China’s struggles to prevent ASF have created what Herring described as a “hole in protein sources for China and throughout the world, which should create opportunity for our farmer producers.”
The importance of pork to the Chinese is hard to overstate. Each consumer there eats, on average, 120 pounds of pork annually—more than twice the average amount of pork that most U.S. consumers eat in a year. Half the world’s total pork is consumed in China.
In China, pork prices have escalated during the past year. Data published Tuesday by China’s National Bureau of Statistics show that the price of pork in China is nearly 50% higher today than during this same time in 2018. The average price of pork, excluding offal, in the week ended Aug. 23 was 31.77 yuan a kilogram ($2.02 a pound), according to data from China’s Ministry of Commerce and reported by the Wall Street Journal.
Who Will Benefit?
Some of the questions now, according to NPPC CEO Neil Dierks, have to do with how much trade potential is available for U.S. pork.
“China’s obviously got to import more pork and more meat protein,” Dierks said.
He noted that the large pork vacuum created by ASF has created upward price pressure, which will encourage other countries to ramp up their pork production.
“Brazil, Australia and Europe will likely increase their production. Then, presumably, we’ll have to compete more with them over the long haul,” Dierks said.
Under more normal conditions, he added, the U.S. pork industry would be the single-largest beneficiary. But ongoing tariffs have severely limited trade between the U.S. and China.
“Why have a 60% punitive tariff on something that you need,” Dierks asked, referencing the penalties China has imposed.
“They really need pork now. The escalation in prices and inflation are a big deal…. If China would roll back (punitive tariffs), we could ship a lot of pork there,” he added. “Single-handedly, U.S. pork could make a huge dent in the U.S.-China trade imbalance. We’re in a unique position where we can help both countries and somewhat diffuse the problem.”
Other Opportunities ...
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.