National Pork Producers Council: TPP must be approved

The National Pork Producers Council (NPPC) is strongly supporting the Trans-Pacific Partnership (TPP) trade deal, with its president-elect calling the agreement “the biggest commercial opportunity ever.”
John Weber, NPPC president-elect, joined leaders from the National Corn Growers Association, American Soybean Association, National Cattlemen’s Beef Association, U.S. Grains Council and National Association of Wheat Growers during a November 11 press conference to stress how greatly TPP would benefit U.S. agriculture.
“America’s pork producers strongly and unequivocally support the Trans-Pacific Partnership, and we will urge Congress to pass it quickly,” said Weber.
Negotiators from the U.S., Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam on October 5 approved the free-trade agreement, which now awaits congressional approval. The text of TPP was just released on November 5.
While Weber admits that no trade agreements are perfect, he stresses that TPP is the best one proposed to date.
“We’re confident it will provide enormous new market opportunities for high-quality U.S. pork products,” said Weber. “It is by far the biggest commercial opportunity ever for U.S. pork production and U.S. pork producers like myself, and especially for those like my son and my young herdsman who will be the next generation of pork producers and will see the full potential of this agreement. This agreement will dramatically exceed all previous U.S. free trade agreements.”
Citing estimates from Iowa State University Economist Dermot Hayes, Weber said the U.S. will see exponential growth in pork exports to the other 11 TPP countries, and those new exports alone will create 10,000 U.S. jobs.
Other factors members of Congress need to keep in mind, Weber said, are that additional countries like Indonesia, the Philippines, South Korea, Taiwan and Thailand have expressed an interest in joining TPP, and that competing nations are negotiating free-trade deals in the Asia-Pacific region that do not include the United States.
When the panel was asked about their views on the likelihood of TPP’s passage, Brett Blankenship, president of the National Association of Wheat Growers, said he was optimistic it would be approved.

US pork exports lost momentum in May

Exports of U.S. pork lost momentum in May, falling below year-ago levels in both volume and value, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Pork exports totaled 184,865 metric tons in May, down 2 percent from a year ago, while value slipped 18 percent to $489.2 million. Through the first five months of 2015, pork exports were down 6 percent in volume (910,967 metric tons) and 15 percent in value ($2.4 billion) from the same period of 2014.
January-May pork exports equated to 25 percent of total production and 21 percent for muscle cuts only – down from 28 percent and 23 percent, respectively, a year ago. Pork export value per head slaughtered averaged $51.39, down 19 percent from the first five months of 2014.


US pork exports to Japan, Mexico slip
After a relatively strong performance in April, pork exports to Japan and Mexico took a step back in May. Export volume to Japan dipped 9 percent from a year ago to 39,340 metric tons, while value was down 18 percent to $152.9 million. Through the first five months of the year, exports to Japan were down 11 percent in volume (189,188 metric tons) and 18 percent in value ($705.2 million).
May exports to Mexico were the lowest in 19 months at 53,186 metric tons, down 6 percent from a year ago. Export value fell by nearly one-third to $95.1 million. For January through May, exports to Mexico remained 5 percent ahead of last year’s pace in volume (291,184 metric tons) but were down 17 percent in value ($508.7 million), reflecting the decline in pork prices from last year’s record levels.


US pork exports to Korea
Exports to Korea cooled slightly in May but remain on a very strong pace, with volume up 38 percent to 95,686 metric tons and value up 37 percent to $285.1 million. Pork demand also took a short-term hit due to MERS, but should be strong in coming months as domestic production is taking longer than expected to recover from the impact of recent outbreaks of PEDV and FMD. Korea’s domestic pork carcass prices edged slightly lower June but still averaged $2.40 per pound – among the highest in the world.


Other Latin American destinations
Growth to Honduras and Guatemala offset smaller volumes to Colombia, resulting in steady volume to Central/South America (51,257 metric tons). Export value was down 3 percent to $132.8 million. The outlook for this region looks positive as exports to Colombia gained momentum in May and shipments to Honduras and Guatemala have surged even higher in recent weeks.


Chinese pork market
Limited access to China, which only a small number of U.S. pork plants are eligible to serve, continues to dampen exports to the China/Hong Kong region – a critical destination for selected pork and pork variety meat items, especially with China’s hog prices hitting multi-year highs. Export volume was down 21 percent from a year ago to 130,525 metric tons and value fell 26 percent to $273.6 million. The European Union is dominating the region’s imported pork market, accounting for nearly 70 percent of pork entering China/Hong Kong.

USDA: Pork exports down 10 percent in February

U.S. pork exports in February totaled 377 million pounds, a ten percent decline when compared to February 2014, the USDA reported.
According to the USDA Livestock, Dairy and Poultry Outlook report released on April 15, lower pork exports were a likely consequence of the high exchange rate value of the U.S. dollar. The USDA also indicated that a labor dispute at West Coast ports, which have now been resolved, slowed both the import and the export of pork.
The federal agriculture agency also noted that U.S. pork exports to most Asian countries were lower in February, largely because of competition from European pork, denominated in lower-valued euros, with the West Coast port slowdown.


Trade with Canada, Mexico picks up
Despite an overall decline in U.S. pork exports in February, U.S. pork exports to Canada and Mexico did increase during the month. Since Mexico is the largest importer of U.S. pork and Mexico and Canada together accounted for 40 percent of all U.S. pork exports in 2014, USDA views this as a positive development.


Outlook for first quarter
USDA anticipates that exports of U.S. pork for the first three months of the year will amount to 1.125 billion pounds, which would be a 16 percent decline when compared to the first quarter of 2014. 

US reaches deal to expand pork exports to Peru

USDA has reached a deal that would expand the export of fresh and chilled pork to Peru. 
The USDA has reached an agreement that will expand access to consumer markets in Peru for U.S. fresh and chilled pork. U.S. Secretary of Agriculture Tom Vilsack announced the new trade agreement on April 10 during a meeting with producers in Des Moines, Iowa.
"Our priority at USDA is not only to open or reopen markets for our producers, but to help drive U.S. economic growth through trade by supporting and creating American jobs on and off the farm," said Vilsack. "We expect Peru's market could generate $5 million annually in additional pork sales."
USDA has conducted extensive negotiations with Peru's Servicio National De Sanidad Agraria (SENASA) since 2012 to expand access for U.S. fresh, chilled pork and pork products. USDA's Food Safety and Inspection Service export library will be updated to the new export requirements for these pork and pork products exports.
At the same meeting, Vilsack also announced an agreement that will allow U.S. producers to export slaughter cattle to Mexico. The agreement between the U.S. and Mexico will take effect immediately and will allow U.S. producers to export slaughter cattle to Mexico for the first time in more than a decade. The two nations had been negotiating on the opening of cattle trade since 2008.

US pork exports up 10 percent to $6.67 billion in 2014

For the fourth year in a row, U.S. pork exports eclipsed the $6 billion mark, according to the National Pork Board. In 2014, 4.803 billion bounds of pork and pork variety meats valued at $6.674 billion were exported, up 2 percent and 10 percent, respectively from 2013.
The top five markets in total pounds of pork exported were: Mexico (1.501 billion pounds), Japan (1.033 billion pounds), China and Hong Kong (743.6 million pounds), Canada (457.2 million pounds) and Korea (298.5 million pounds).
The top five markets in total value exported were: Japan ($1.932 billion), Mexico ($1.558 billion), Canada ($904.7 million) China and Hong Kong ($775.4 million) and Korea ($444.6 million).
“We saw a dynamic environment for U.S. pork exports last year,” said Brian Zimmerman, chair of the Pork Checkoff’s Trade Committee and a Beatrice, Nebraska, producer. “Our strong global partnerships and rising demand across the globe for our product meant that despite record prices, we continued to see growing revenue from exports. However, our exporters dealt with many trials, as it was a highly competitive market.”
In 2014, 26.5 percent of U.S. pork and pork variety meat were exported, adding $62.45 per hog marketed. Strong pork variety meat demand around the world continues to increase exports and positively impact producer profitability. For every $1 million of pork variety meats exported, the live value of hogs is increased by $0.20 per cwt, according to a regression analysis conducted by Iowa State University.
“While 2014 exports remained strong, the industry faced many challenges, such as market closures, increasing competition, export port issues, a high-valued U.S. dollar and global trade shifts,” said Becca Hendricks, vice president of international marketing for the Pork Checkoff. “Checkoff resources were extremely important in monitoring and reacting to situations to allow for continuous trade.”
During 2014, more than 100 countries around the world imported U.S. pork.

US pork exports to Mexico expected to continue to grow in 2015

Pork exports from the United States to Mexico are expected to grow in 2015, but at a less rapid pace than they have over the past three years.
From January to November 2014, U.S. pork exports to Mexico totaled 617,000 metric tons, worth a record $1.42 billion, up 10 and 31 percent respectively from 2013, based on data from the U.S. Department of Agriculture's most recent data. Based on that, full-year 2014 exports should be 630,500 metric tons, up 12 percent from 2013, according to University of Missouri economist Ron Plain. He predicts 2015 sales to Mexico will be 649,000 metric tons, just a 3.1 percent bump from 2014.
According to a Reuters report, the U.S. Meat Export Federation (USMEF) puts total 2014 U.S. pork exports to Mexico at about 680,000 metric tons, an 8 percent rise from 2013, valued at $1.6 billion, up 28 percent, the third straight yearly record for both tonnage and value to Mexico.
The USMEF projected another record year for export volume to Mexico in 2015 but with growth at a more modest pace of 1.5 percent to about 690,000 metric tons.
Porcine epidemic diarrhea (PED) virus, which has killed an estimated 8.5 million pigs in the United States since May 2013, is one factor behind Mexico's aggressive buying in 2014.
The virus had spread to 17 of Mexico's 19 producer states by May 2014.
Pork prices in Mexico rose to near-record highs in 2014 but should come down in 2015 as PEDv shortages start to ease, Mexico swine veterinarian Dr. Alberto Stephano said.

North Carolina pork exports to Japan continue to climb

• 

  Andrea Gantz

  Pork has become North Carolina's most rapidly growing export product shipped to Japan.

  From WATTAgNet:
  Japanese demand for U.S. pork has helped make pork the fastest growing export product from the state of North Carolina.
  The value of pork shipped from North Carolina to Japan has grown nearly ten-fold since the beginning of the 21st century. According to a report from the Raleigh News & Observer, the value of pork shipped from North Carolina to Japan was below $30 million annually, but it now exceeds $250 million. In the process, pork has outgrown tobacco as North Carolina’s leading export product to the Japanese market.
  The increased demand for pork from the United States is a reflection of the quality of the product. In the minds of the Japanese customer, the pork that is raised in North Carolina has a specific taste, flavor and color that the people of Japan desire.
  “Japanese consumers are very finicky, very rich and they demand quality,” said Dermot J. Hayes, a pork economy expert and a professor at Iowa State University. “So the people who export to Japan—they export a very high-value product. And that returns a lot of money.”
  Japan is expected to purchase an estimated $2 billion worth of pork from the U.S. this year.

U.S. pork exports decline 2.5 percent in July

U.S. pork exports in July amounted to 396 million pounds, about 2.5 percent below the levels recorded during July 2013, according to the USDA Livestock, Dairy and Poultry Outlook report, released on September 17.  Higher prices of U.S. pork products in June are largely attributed to the overall reduction of U.S. pork exports in July.
Of the typical ten largest importers of U.S. pork, six of them received fewer shipments in July. Japan, Canada, Russia, China, Australia, the Philippines and Honduras all showed a drop in imports of U.S. pork. The most significant drop came from China, which went from receiving 53 million pounds to 25 million pounds, a 53.5 percent decrease.
The U.S. exported more pork to Mexico – its largest customer – with a 3.8 percent increase. July 2014 levels reached 113 million pounds, up from the July 2013 figure of 109 million pounds. Other countries increasing shipments of U.S. pork included South Korea, up 19.5 percent, and Colombia, up 23.8 percent. Russia went from receiving no U.S. pork in July 2013 to receiving 38 million pounds. That resumption of trade, however, ended after Russia on August 6 announced a ban on food products from the United States and other countries for political reasons.
U.S. increases pork imports
The USDA Livestock, Dairy and Poultry Outlook report also noted that pork imports to the U.S. were up 79 million pounds, a year-over-year increase of 2.4 percent. Almost 76 percent of those imports came from Canada, although the U.S. received slightly less Canadian pork in July 2014 than it did during the same month in 2013.
The balance of the U.S. pork imports came from Poland, Denmark, Mexico, Italy and the Netherlands.

National Pork Board examines global marketing opportunities

The National Pork Board announced today a study that will explore alternatives for promoting pork's quality and sustainability benefits with international consumers. The study, to be conducted by SIAM Professionals, LLC, will evaluate existing marketing strategies and partners to identify methods for improving pork's position as the global meat of choice.
Funded through America's Pork Checkoff, this project will evaluate the effectiveness of current global marketing efforts and identify potential partnerships and marketing tools for promoting U.S. pork. SIAM specializes in evaluating and developing international market opportunities for the food andagribusiness industry.
"Throughout the world, pork is the single most consumed meat. The popularity of U.S. pork is driven by its taste, versatility as a recipe and menu item, and affordable cost," said Chris Novak, chief executive officer of the National Pork Board. "For many years, pork has been marketed globally with all other meats, and it's our intention to determine the ideal way to market U.S. pork on an international basis. It is part of our ongoing commitment to examine all of our Pork Checkoff programs to ensure continuous improvement."
According to Euromonitor International's latest estimates, global pork sales are expected to grow by 12 percent in the 2013-2018 forecast period, adding 10.6 million metric tons in sales volume by 2018. Most of this increase will be seen in emerging markets, such as Eastern Europe, Asia Pacific and Latin America where populations and incomes continue to grow. In the first six months of 2014, exports increased 9 percent from the same time period a year ago, according to current data from the USDA Foreign Agricultural Service. Most of the gains are due to growth in Mexico and continued demand in Asia.
The National Pork Board is committed to addressing the international trade barriers facing the pork industry. Currently, the United States exports approximately 28 percent of the pork raised here, delivering around $70 per animal raised back to America's pig farmers.
"In 2013, the U.S. sold pork in more than 100 countries. International markets represent a significant sales channel and, grown properly, will be critical to the success of pig farmers across thecountry," Novak said. "As an industry, we must remain keenly focused on developing global markets and effectively promoting pork worldwide."
The Pork Checkoff's International Trade activities are overseen by the Checkoff's Board of Directors and a 23-member International Trade Committee from throughout the United States. The committee's mission is focused on:


• Research: Conducting technical and economic research andmarket analysis to prove or dispute non-scientific barriers tointernational trade.
• MarketAccess: Seeking and pursuing alllegitimate avenues to market U.S. pork worldwide.
• MarketDevelopment: Defining key targetmarkets and creating promotion and education outreach opportunities withimporters and consumers.
The National Pork Board has funded international market development activities through the U.S. Meat Export Federation for more than 25years and is interested in further expanding how U.S. pork is marketed on a worldwide basis. SIAM will investigate the potential for a revised or complementary approach, developing systems with a focus on identifying new and emerging markets, incorporating new messages, and more effectively measuring results.
"Our farmers, staff, contractors and others involved in U.S. pork production look forward to using insights gleaned from SIAM's analysis in shaping and sharing pork's story with our international consumers," Novak said. "We plan to engage our entire industry in this process of global market review."
Results of SIAM's evaluation will be presented to Pork Checkoff's full board of directors in spring 2015.

Japan gate price on pork must end, NPPC says

The National Pork Producers Council, in a letter sent to top Obama administration officials on August 14, detailed the reasons U.S. negotiators on the Trans-Pacific Partnership (TPP) should insist that Japan eliminate its gate price on U.S. pork. TPP is a regional negotiation that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which account for nearly 40 percent of global gross domestic product.
NPPC told U.S. Agriculture Secretary Tom Vilsack and U.S. Trade Representative Michael Froman that the gate price has associated with it a long history of fraud and criminal activity, and it discriminates against Japanese consumers by putting upward pressure on food prices and has prompted Japanese meat processing companies to move their factories to other Asian nations, costing the country much-needed jobs.
The byzantine system also may violate Japan’s constitution, which requires that obligations contained in treaties be given legal precedence over domestic laws. Japan considers the World Trade Organization’s “Marrakesh Agreement,” which established existing WTO rules, as a treaty, NPPC pointed out. Several plaintiffs, including a former Japanese government official, are arguing that the gate price violates provisions of the WTO Agreement on Agriculture, which prohibit the use of variable import levies, and, therefore, is in violation of the country’s constitution.
Pork producers’ support for a final TPP agreement is conditioned on the elimination of all tariff and non-tariff barriers to U.S. pork exports in each of the TPP nations, including the elimination of the gate price in Japan,” said NPPC President Howard Hill, a veterinarian and pork producer from Cambridge, Iowa.
In the TPP negotiations, Japan is demanding special treatment for its agricultural sector, including exempting pork and other “sensitive” products from tariff elimination and maintaining the gate price on pork.
“While Japan’s current TPP offer on pork, if implemented, might allow a modest increase in U.S. pork exports to that country,” Hill said, “it would rob the U.S. pork industry of hundreds of millions of dollars in annual pork exports to Japan and would stymie the creation of thousands of U.S. jobs that the industry would realize if the gate price and tariffs on pork were eliminated. Further, the disposition of this issue will impact our producers for the next 25 years, setting a precedent for future U.S. free trade agreements.”
Japan is the No. 1 export market for U.S. pork, which shipped nearly $2 billion of products to the island nation in 2013.

US pork export forecast raised for 2014, 2015

Russia’s ban on U.S. agriculture products should not have an impact on overall pork exports, according to the USDA. The agency, in its August 12 World Agricultural Supply and Demand Estimates (WASDE) report actually increased its projections for U.S. pork exports in 2014 and 2015.
USDA stated in its report that the demand in other major markets will more than offset the loss of Russia as a trade partner.
The August WASDE report called for 5.07 billion pounds of U.S. pork to be exported in 2014, up from the July estimate of 5.005 billion pounds. The trend is similar for 2015. The August report projects  5.15 billion pounds of U.S. pork to be exported in 2015, up from the July projection of 5.09 billion pounds.
US pork production forecasts also raised
Forecasts for U.S. pork production in both 2014 and 2015 were raised in August by the USDA. The agency called for 22.78 billion pounds of pork produced in 2014, up from its July estimate of 22.76 billion pounds. The projection for 2015 U.S. pork production was updated in August to 23.28 billion pounds, up from the July forecast of 23.24 billion pounds.
According to USDA, the projections for U.S. pork production were raised because lower feed prices are encouraging producers to raise animals to heavier weights.

US pork exports down 3 percent

A Russian ban on pork and beef from the United States continues to affect US red meat exports in 2013, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
May US pork exports increased 3.5 percent in volume over last year's totals if Russia is excluded. For January through May 2013, export volume would be down 5.8 percent instead of 9 percent if Russia is not included. An oversupply of domestic pork in many major export markets continues to pose a challenge to U.S. exports.
"The loss of a key market like Russia ripples through the red meat industry," says Philip Seng, president and CEO of USMEF. "The absence of one of the largest meat purchasers in the world affects the volume of product sold and, more importantly, the price that other customers need to pay for it in a competitive marketplace."
Summary of May pork results 
Total pork exports in May improved over 2013 trends but still dipped 3.3 percent to 180,637 metric tons valued at $505.4 million, a 3.6 percent decline from last year. They accounted for 23 percent of muscle cut production and 26.4 percent of muscle cuts plus variety meat, similar to last May.
For the first five months of the year, exports were down 9 percent to 882,905 metric tons valued at $2.47 billion, down 8 percent.
The value of pork exports in May equated to $54.85 per head of fed slaughter, down from $56.47 last year. The year-to-date export value averaged $53.14 per head, down from $58.36 last year.
May pork exports were led by another strong month for Mexico (52,295 metric tons, +11 percent) and steady year-over-year volumes to Japan (37,108 metric tons). Exports also were larger for Central/South America (10,008 metric tons, +58 percent, led by growth to Colombia, Chile and Honduras), ASEAN (5,313 metric tons, +61 percent on larger volumes to the Philippines), Caribbean (4,210 metric tons, +85 percent with larger exports to the Dominican Republic, Bahamas, and Trinidad and Tobago) and Taiwan (2,688 metric tons, +142 percent).
"The volume of US pork that Mexico consumes is essential for our industry, and that is why we have focused resources on driving up per-capita pork consumption there," Seng explained. "On the other hand, Japan is the leading value market for pork exports, and there we are concentrated on higher value branded and chilled products."
Pork exports to Russia in May fell from 12,250 metric tons last year to zero this year. For the year, exports to Russia are down 84 percent in volume and value (from 37,075 metric tons to 5,770 metric tons and from $109.5 million to $17.9 million).
May pork exports to Canada were down 3 percent to 19,093 metric tons but remained up 3 percent for January through May. Exports to the China/Hong Kong region dipped 9 percent in May to 34,543 metric tons, but were larger than the previous two months. South Korea (8,645 metric tons, -19 percent) and Australia/New Zealand (4,251 metric tons, -28 percent) also were down in May.
Through May, Mexico was the largest volume destination for U.S. pork but Japan was No. 1 in value. China, Canada, South Korea, Hong Kong, Australia and the Philippines rounded out the top eight countries in volume, with the same markets leading for value: Japan, Mexico, Canada, China, Korea, Australia, Hong Kong and the Philippines. Canada and the Philippines were the only top markets that saw export growth in the first five months of the year, but exports were robust to many of the smaller markets. Larger domestic supplies and market access issues have created a challenging atmosphere for US pork exports thus far this year but exports showed positive signs of growth in May.

Trade agreements could help US remain world’s largest pork exporter

Already the world’s leading exporter of pork, the United States can further improve its export opportunities through a pair of multi-national trade partnerships.
The Trans-Atlantic Trade and Investment Partnership provides a great opportunity for the United States to increase trade with its closest competitor of pork exports. The partnership involves the United States and 27 member nations of the European Union, also a global leader in pork exports and pork consumption.
In 2012, the United States surpassed the EU as the world’s largest exporter of pork, with $6.3 billion in sales, said Becca Hendricks, assistant vice president of international marketing for the Pork Checkoff in a presentation May 5 at the World Pork Expo. The U.S. also shipped pork to more than 115 countries in 2012, and exports accounted for 27 percent of all U.S. pork and pork product sales, she added.
If the Trans-Atlantic Trade and Investment Partnership talks are successful for the U.S., its leading position should be solidified. Currently, only 0.25 percent of the pork consumed in the EU is from the U.S.
“This is one of the largest pork consuming regions, so the opportunity is tremendous,” said Laurie Hueneke, director of international trade policy, sanitary and technical issues for the National Pork Producers Council.
Countries in the European Union have imposed trade barriers that have hindered the United States. Among those are bans on ractopamine, trichinae mitigation requirements and prohibition on pathogen reduction treatments. However, Hueneke is confident EU nations will realize U.S. pork is safe and some of those barriers can be lifted.
“There are a lot of issues that we have on the table. We view the Trans-Atlantic Trade and Investment Partnership as an opportunity to engage, remove these barriers to trade, and export more U.S. pork to countries that consume a significant amount of pork,” she said.
Negotiations within the Trans-Atlantic Partnership are expected to begin in early July.
Export opportunities appear to be growing for the U.S., as the number of nations in the Trans-Pacific Partnership is also growing. What was a four-member partnership in 2006 has 10 members in 2013, with Japan soon to become the 11^th.
Member nations – the United States, Australia, Brunei, Canada, Chile, Mexico, New Zealand, Peru, Singapore and Vietnam – have agreed Japan’s admission is a good thing, but the formal approval process remains to be completed.
The United States pork industry has been subjected to high tariffs from some Trans-Pacific Partnership nations. Hueneke is hopeful tariffs will be less of a hindrance after trade talks commence.
“The exciting part of this agreement is we can reduce the tariffs on U.S. pork and pork products. We’re already the lowest-cost producer in the world, and this just improves our competitiveness in these markets,” she said.
Hueneke also hopes some of the sanitary or phytosanitary barriers will be lifted as a result of trade talks. Specific examples Hueneke mentioned include trichinae regulations imposed by Chile, and porcine reproductive and respritatory syndrome restrictions placed by Australia and New Zealand. Most of those barriers have little scientific merit, she said, but are based more on protecting the nations’ own domestic production.
“The Trans-Pacific Partnership provides leverage for the U.S. to negotiate and remove these barriers and move more products into these countries,” she said.
The Obama administration originally expected an agreement to be reached by the end of 2013. Because of the recent move to include Japan into the partnership, that deadline might not be met.

Shuanghui purchase of Smithfield opens doors for US pork

Shuanghui International Holdings' recent purchase of Smithfield Foods will be good for the U.S. pork industry, as it will open more doors for exports to China, the world's largest consumer of pork. Dermot Hayes, Iowa State University professor of finance and consultant to the National Pork Producers Council, addressed the Chinese company's acquisition of the largest pork producer in the United States during a June 5 session at the World Pork Expo in Des Moines, Iowa.
Hayes said ownership of a U.S. pork processing company will put China more at ease in importing and consuming U.S. pork. Once that trust is established with Smithfield, trust with other U.S. producers should follow, he said.
China, with an incredibly dense population, has a lot of contact between the people and the swine being raised there, Hayes said, which has added to disease problems. "Some of the disease problems in China are pandemic. It is one of the few countries where production is stagnant or falling," Hayes said.
To date, the Chinese government has added more sows to make up for the lack of productivity, but Hayes does not think that is going to fix the problem. A self-sufficient Chinese pork industry may not be possible, he added.
 "I view the Shuanghuai purchase of Smithfield as a way for that company and also for Chinese society to have a back-up plan in case they can never get the disease problem under control," said Hayes. 

Chinese pork imports down 10 percent in 2013

In the first quarter of 2013, China imported 10 percent less pork compared to same period last year, largely due to a 70 percent decline in the amount of US pork shipped, according to BPEX. The reduction is the result of China imposing new requirements that all pork imports must be independently certified to be free of ractopamine.
In the first quarter of 2012, the US accounted for over half of Chinese pork imports. This gap has been filled by EU supplies which were up by two-thirds and accounted for 67 percent of imports during the quarter, compared with 36 percent in 2012. All EU exporters benefited, with the exception of Ireland. Shipments from the UK during the quarter totaled 4,800 tons, a 4 percent market share.
There also was a similar pattern for offal exports, with US shipments falling by nearly 40 percent year on year and volumes from the EU rising by nearly three-quarters. The US remained the largest country supplier, however, although the EU accounted for just over half of the total. Shipments from the UK totaled 3,200 tons, a 1.5 percent market share.

China announces additional testing for all US pork March 1

China has announced that beginning on March 1, 2013 all U.S. pork products will be tested for ractopamine, a feed additive used to promote lean muscle growth by a third-party testing firm, according to the U.S. Meat Export Federation. The feed additive has been found to be safe and certain levels are deemed acceptable by the United Nations.
China is the world's biggest producer and consumer of pig meat and the third-largest market for U.S. pork. The announcement is odd considering that no pork products from the US have tested positive for the feed additive, recently. U.S. pork exports to China and Hong Kong, totaled $886 million in 2012.
Some industry insiders see the move as a way to protect its domestic pig production, and earlier in February, Russia barred any U.S. meat products that contain ractopamine. If China were to ban pork imports from the United States, it would boost pig production in Canada, Brazil and the European Union.

US pork exports up 2.2 percent in October

October U.S. pork exports were almost 493 million pounds, 2.2 percent above October 2011 numbers, according to the latest U.S. Department of Agriculture report. For the first 10 months of the year, U.S. pork exports totaled almost 4.5 billion pounds, more than 7 percent higher than the same period of 2011.
Strong year-over-year gains through July 2012 were largely due to shipments to China-Hong Kong. In October, year-over year lower shipments to Japan (-1.1 percent in October and -5.2 percent for January–October) and China-Hong Kong (-61.6 percent in October and +16.5 percent for January–October) were more than offset by strong exports to NAFTA partners Mexico (+32.8 percent in October and +15.6 percent for January–October) and Canada (+20.3 percent in October and +17.4 percent for January–October), and Russia (+75 percent in October and +45 percent for January–October).
U.S. pork imports in October were almost 4 percent below 2011 numbers, due mostly to lower imports from Denmark, according to the USDA. Imports of live swine from Canada were fractionally higher in October (+0.56 percent). Imports of feeder pigs (23–50 kilograms) were 36 percent higher than in 2011, likely due to strong prices for finishing animals in the U.S. Strong imports of feeder pigs offset year-over-year lower imports of all other categories of imported live swine. 

China pork imports from US to rise 29 percent

China's pork imports from the U.S. will likely rise around 29 percent in 2012 despite high U.S. grain prices, on the heels of a 30 percent increase in the second half of 2011, according to the Beijing Orient Agribusiness Consultant Ltd. research firm.
The imports, around an estimated 620,000 tons, will account for less than 2 percent of China's annual pork consumption. China imported 480,000 tons of pork from the U.S. in 2011, according to Beijing Orient Agribusiness Consultant.

Mexico lifts tariff on US pig meat

Mexico has lifted tariffs on U.S. exports, including pork, and the U.S. government has granted the first permit to a Mexican trucking firm to haul goods into the U.S.
The two governments in July signed an agreement resolving the trucking issue, with the U.S. Department of Transportation crafting a cross-border trucking program and the Mexican government cutting the retaliatory tariffs by 50%. The remaining tariffs were suspended today after the DOT issued the trucking permit. “America’s pork producers are very pleased that the U.S. issued the first Mexican trucking permit, which has led today to the Mexican government removing the remaining retaliatory tariffs on our products,” said National Pork Producers Council President Doug Wolf. “Mexico is a very important market for the U.S. pork industry and for many other sectors. More than 6 million U.S. jobs depend on trade with Mexico.”
The long-standing dispute between the nations was over a provision of the 1994 North American Free Trade Agreement. The trucking provision was set to become effective in December 1995, but the U.S. failed to abide by it. Mexico imposed tariffs on 89 U.S. products in March 2009, after Congress failed to renew a two-year-old pilot program that allowed a limited number of Mexican trucks into the U.S. Mexico added products, including pork, in August 2010 after the Obama administration failed to present a proposal for resolving the trucking dispute. 

US free trade agreements may generate $772 million in new pig meat sales

The National Pork Producers Council has praised Congressional approval of free trade agreements with Colombia, Panama and South Korea that may generate nearly $772 million in new pork sales when fully implemented.
The agreements will also add more than $11 to the price producers receive for each hog marketed and create more than 10,000 pork industry jobs, according to Iowa State University economist Dermot Hayes. “These trade agreements will be a boon for U.S. pork producers and for the U.S. economy and jobs,” said Doug Wolf, NPPC president. “Passage of these FTAs is one of the greatest victories ever for the U.S. pork industry.”
The U.S. pork industry was instrumental in getting the trade agreements approved, particularly the deal with South Korea. Last December when the U.S. and the Asian nation were at an impasse over trade in autos, the U.S. pork industry agreed to move back the effective date for when much of its exports enter Korea at a zero tariff rate. The NPPC led the agricultural community in support of the FTAs.