In this file:
· China, Tariffs and Pork Sales
… Tariffs on U.S. pork increased another 10% on Sept. 1, making the retaliatory tariff 60%, tacked on to a traditional 12% duty already in place. That puts the full Chinese tariff on U.S. pork now at 72%...
· NPPC optimistic about tariff-lifting reports from China
“About what it actually means or what the tariffs will be eliminated to. But, I think that the fact that we’re working together and working towards mutual resolution is going to be very beneficial.”
· China pork prices soar as herds hit by fever, farm closures
Chinese families are having to rethink menu options as pork prices soar despite government efforts to rebuild herds decimated by African swine fever and large-scale closures of pig farms for environmental reasons…
· NPPC Statement on China Market Access
China, Tariffs and Pork Sales
NPPC: China Should Reduce Tariffs to Lower Food Inflation, Move Talks
By Jerry Hagstrom, DTN/Progressive Farmer
WASHINGTON (DTN) -- While Friday's announcement from China that it would suspend additional tariffs on U.S. pork is a good sign, China should remove the 60% punitive tariff it has placed on U.S. pork to ease its own rising pork prices and move along trade talks with the United States, National Pork Producers Council officials said.
If the Chinese government would do this, "It would help their citizens," who are experiencing rising pork prices due to African swine fever, NPPC President David Herring, a Lillington, North Carolina producer, said at a briefing for reporters Thursday following an NPPC fly-in to Washington.
Early Friday, China announced it will suspend "additional tariffs" on pork, soybeans and other farm goods, Xinhua News Agency reported. Yet it is unclear exactly what level of tariffs Chinese officials committed to suspend, and the Associated Press reported phone calls to Chinese government agencies were not answered Friday because of a national holiday.
"If media reports are accurate, this is a most welcome development," Herring said in a statement Friday.
Tariffs on U.S. pork increased another 10% on Sept. 1, making the retaliatory tariff 60%, tacked on to a traditional 12% duty already in place. That puts the full Chinese tariff on U.S. pork now at 72%. The inability of U.S. producers to export to China is costing pork producers $8 per animal sold, according to Dermot Hayes, an economist at Iowa State University.
With China forced to kill pigs to stop the spread of African swine fever and Chinese production down 50%, U.S. producers should benefit, but the tariffs make U.S. pork too expensive to import, said Nick Giordano, NPPC vice president and counsel for global government affairs.
U.S. pork producers are benefiting from rising world pork prices due to lower Chinese production, but the benefits would be so much greater if the U.S. industry could export to China, he said.
"Our sector is one of those most impacted by the trade disputes," Giordano said.
Removing the tariff on U.S. pork, "Would be viewed favorably by our industry but, more importantly, by the U.S. government," Giordano said.
Instead of exporting higher volumes in a period of Chinese shortages, American producers are watching their competitors in other countries make those sales, he added. Most U.S. competitors only pay a 12% duty selling into China.
China bought 237,800 metric tons of U.S. pork and variety meats from January through July of this year, according to USDA data, a 51% increase from low 2018 sales to China. In terms of volume, China is the second-largest market behind Mexico. Japan remains the top market for U.S. pork in terms of dollar value, while China is third behind Mexico.
Data published by the European Commission on the EU's pork exports show that, during the first half of 2019, EU exports to China grew by 42% compared to the same period in 2019, going from 680,686 metric tons in 2018 to 965,768 metric tons in 2019, according to the swine industry website www.pig333.com.
Asked whether the fact that the Chinese tariffs are in retaliation for U.S. tariffs means that President Donald Trump should reduce American tariffs to encourage the Chinese to reduce theirs, Giordano said...
NPPC optimistic about tariff-lifting reports from China
By Julie Harker, Brownfield
September 13, 2019
The National Pork Producers Council says they are pleased Chinese media is reporting that China will suspend tariffs on U.S. pork imports, “We’re really excited and we welcome this announcement. I think it’s very good to see that there has been movement by the Chinese to resolve this tariff dispute,” Maria Zieba, director of international affairs for NPPC, tells Brownfield Ag News.
She says they are waiting for details, “About what it actually means or what the tariffs will be eliminated to. But, I think that the fact that we’re working together and working towards mutual resolution is going to be very beneficial.”
Zieba says the tariff rate China has on U.S. pork is 72%...
more, including audio [3:06 min.]
China pork prices soar as herds hit by fever, farm closures
Fu Ting, Associated Press
via New Haven Register - September 13, 2019
BEIJING (AP) — Chinese families are having to rethink menu options as pork prices soar despite government efforts to rebuild herds decimated by African swine fever and large-scale closures of pig farms for environmental reasons.
Liu Min, a 61-year-old retired cleaning lady, went ahead and bought a small chunk of pork that cost her 21 yuan ($3) during a recent visit to a local fresh market. That's nearly twice what it usually costs.
After all, you can't make "zhajiang" style noodles without pork to go into its heavy bean-based sauce, Liu said.
But pork is a big part of her diet, as it is for most Chinese, and the higher prices are pinching.
"This is having a huge effect on me, a huge one," she said.
Pork prices surged 46.7% in August from a year earlier, adding 1.08 percentage points to a 2.8% rise in the consumer price index. That's hitting Chinese families hard: pork accounts for more than 60% of their meat consumption.
"People complain pork is too expensive and buy less, so business is not going well," said Sun Tiantao, who sells pork in a market in Beijing.
China raises about half of the world's pigs, and the outbreaks of African swine fever that began over a year ago have ravaged its herds. The disease does not infect humans.
To boost pork production, the government announced this week that it will take steps to help revive hog production, prevent and control the disease and upgrade farms to further ensure pork supplies and stable prices.
That will take some doing: in August hog stocks dropped nearly 40% from a year earlier and nearly 10% from July, according to the Ministry of Agriculture and Rural Affairs.
The trend is unlikely to reverse anytime soon, and piglet prices had more than doubled from a year earlier to 52.93 yuan ($7.50) per kilogram as of last week, the ministry said.
That means the price of pork will be rising for at least another six months.
"It has to go up, because increasing supply is so difficult and the farmers are leaving, and they are not coming back," said Wang Dan, an analyst for the Economist Intelligence Unit.
The pork crisis has at least one advantage, Wang quipped, allowing China more "flexibility" in its trade talks with the U.S., since smaller herds mean less need to import soybeans for feed.
Human appetites are another question...
NPPC Statement on China Market Access
Source: National Pork Producers Council (NPPC)
September 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.”
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.