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Former Agriculture Secretaries Announce Support for USMCA
All former U.S. Secretaries of Agriculture since President Reagan’s Administration announced support for the United States-Mexico-Canada Agreement (USMCA). In a letter to Congressional leaders, former Secretaries John Block (Reagan), Mike Espy (Clinton), Dan Glickman (Clinton), Ann Veneman (W. Bush), Mike Johanns (W. Bush), Ed Shafer (W. Bush), and Tom Vilsack (Obama) underscored the importance of passing USMCA saying, “We need a strong and reliable trade deal with our top two customers for U.S. agriculture products. USMCA will provide certainty in the North American market for the U.S. farm sector and rural economy. We strongly support ratification of USMCA.” Following the announcement, Secretary Perdue issued this statement:
“President Trump has fulfilled a promise, which many said couldn’t be done, to renegotiate NAFTA and improve the standing of the entire American economy, including...
Rabobank: Poultry Q4 2019 Outlook
Global poultry markets are expected to see some recovery in the coming months. However, this will be under fragile conditions. Key concerns are the ongoing oversupply situations in many global markets, like the EU, US and South Africa. Actually, only disease-affected China and Mexico, and Brazil (due to the combination of supply reduction and improved export demand), are performing relatively well. Other markets are suffering from oversupply.
Therefore, more disciplined supply should be the key to returning to profitability for the global poultry industry in 2H 2019. Notable positives are the expected ASF-related strength in pork prices, and the limited feed price upside risks, given the relatively good feed grain supply position expected in...
August Retail Sales Grew 4.1 Percent Over Last Year but New Tariffs Present 'Downside Risk'
Retail sales were up 0.4 percent in August seasonally adjusted from July and up 4.6 percent unadjusted year-over-year, the National Retail Federation said today. The numbers exclude automobile dealers, gasoline stations and restaurants.
“While consumer attitudes about the economy indicate some retreating optimism, the bottom line is that consumer spending remained resilient in August and continued to be a key contributor to U.S. economic growth,” NRF Chief Economist Jack Kleinhenz said. “Trends remain strong, but August grew somewhat slower than July, which could reflect consumers’ concerns about the unpredictability of trade policy. It is too early to assess the impact of the new tariffs that took effect at the beginning of this month, but...
NPPC Statement on China Market Access
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...
China to Exempt U.S. Pork, Soybeans from Additional Tariffs -Xinhua
China will exempt some agricultural products from additional tariffs on U.S. goods, including pork and soybeans, China's official Xinhua News Agency said Friday, in the latest sign of easing Sino-U.S. tensions before a new round of talks aimed at curbing a bruising trade war.
The United States and China have both made conciliatory gestures, with China renewing purchases of U.S. farm goods and U.S. President Donald Trump delaying a tariff increase on certain Chinese goods.
China had imposed three rounds of additional tariffs on U.S. pork, including 25% increases in April and July 2018 and a 10% bump this month, raising the total duty from...
Pork Producers Urge Congress to Ratify USMCA and Support Measures to Prevent Foreign Animal Disease
Congressional ratification of the U.S.-Mexico-Canada trade agreement (USMCA), allowing the U.S. pork industry to maintain zero-duty market access to two of its largest export markets, remains a top priority for the National Pork Producers Council (NPPC). More than 120 pork producers from across the country helped spread this and other messages on Capitol Hill this week during NPPC’s Fall Legislative Action Conference (LAC).
“Last year, Canada and Mexico took over 40 percent of the pork that was exported from the U.S. and they are expected to be a large percentage this year as well,” said NPPC President David Herring, a pork producer from Lillington, N.C. “USMCA will strengthen...
July Pork Exports Reach New Heights; Beef and Lamb Exports also Strong
U.S. pork exports were record-large in July while beef exports were relatively steady with last year’s strong results, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
July pork exports surged to 233,242 metric tons (mt), up 32% year-over-year and topping the previous record from April 2018. Export value was $623.3 million, up 34% and breaking the previous high reached in November 2017. These results pushed January-July exports 2% ahead of last year’s pace at 1.48 million mt while value was down 2% at $3.77 billion.
Pork export value averaged $58.92 per head slaughtered in July, up 22% from a year ago and the highest in five years. January-July export value averaged $51.33 per head, down...
Retailers Respond to Announcement of US-China Trade Talks
The National Retail Federation issued the following statement from President and CEO Matthew Shay after the announcement that China and the U.S. will hold high-level trade talks in October.
“We are encouraged by the confirmation of US-China trade talks. We urge the administration to end this trade war and come to an agreement that results in a complete roll back of the existing tariffs. This trade war has gone on far too long, and the harmful consequences for American businesses and consumers continue to grow. We are optimistic both sides will come together and make significant progress toward a trade deal that resets US-China trade relations and...
Rabobank: Outside Influences on the Grains & Oilseeds Industry
African Swine Fever Update: Impact on Feed
Chinese pork production in 2019 is expected to decline 25%, with a further 10% drop in 2020. The forecast is for the hog herd to be down by 50% by the end of 2019, before stabilizing somewhat in 2020. Other meat and seafood production and consumption will rise. Pork imports into China are already on the rise, with Spain, Germany, and Canada the key suppliers so far this year. However, we see the potential of non-EU countries gaining higher shares in 2020, as EU production doesn’t seem to be responding strongly enough to meet expected Chinese demand.
Impact on G&O: We are maintaining our projections for China’s feed use and soybean imports from last month. In 2019, the year-on-year drop of China’s hog feed is projected at 35%, with a 5% rebound in 2020. Poultry feed will rise significantly in 2019 and 2020, while aquafeed will only rise by about 5%, with other feed also only growing marginally. Still, total feed in 2019 is seen down...
U.S. Poultry, Egg Industries Welcome Announcement of Japan Trade Agreement
U.S. poultry and egg organizations welcome the announcement of a trade agreement between the United States and Japan, an achievement that stands to benefit our industry.“Frozen chicken, turkey, and processed egg products will receive favorable tariff reductions enabling our products to compete more effectively with those of countries in the Trans-Pacific Partnership,” the USA Poultry & Egg Export Council (USAPEEC), National Chicken Council (NCC), National Turkey Federation (NTF) and United Egg Producers (UEP) said in a joint statement issued Monday.“While this is just the first stage of a bilateral agreement, it is welcome news and we would like to thank President Trump, Secretary Perdue and Secretary Lighthizer for...
Retailers Respond to Tariff Escalation: ‘Where Does This End?’
The National Retail Federation issued the following statement from Senior Vice President for Government Relations David French after the Trump administration announced that current tariffs on $250 billion in Chinese goods will rise from 25 to 30 percent on October 1. New tariffs set to take effect September 1 and December 15 on $300 billion in Chinese goods will rise from 10 to 15 percent.
"It's impossible for businesses to plan for the future in this type of environment. The administration's approach clearly isn't working, and...
Industry Reacts to U.S. Trade Agreement with Japan
On Sunday, President Trump announced that the United States and Japan reached a trade deal in principle, that would pave the way for more exports of U.S. agricultural products to Japan. In a tweet, President Trump stated, "We have excess corn in various parts of our country with our farmers because China did not do what they said they were going to do. And Prime Minister, Abe Shinzo, on behalf of Japan, they're going to be buying all of that corn."
Sonny Perdue, U.S. Secretary of Agriculture, said, "Japan is a significant market for United States agriculture exports, making today a good day for American agriculture. By removing existing barriers for our products, we will be able to sell more to the Japanese markets." Perdue added that at the same time, the United States will be able to close gaps that allow...
USDA Details Trade Damage Estimate Calculations
U.S. Secretary of Agriculture Sonny Perdue today announced that the U.S. Department of Agriculture (USDA) Office of the Chief Economist has published a detailed accounting of how estimated damage from trade disruptions was calculated for its support package for farmers announced on July 25, 2019. USDA’s Office of the Chief Economist developed an estimate of gross trade damages for commodities with assessed retaliatory tariffs by China, India, the European Union, and Turkey to set commodity payment rates and purchase levels. USDA employed the same approach often used in adjudicating World Trade Organization trade dispute cases. “Just as we did before, we want to be transparent about this process and how our economists arrived at the numbers they did. Our farmers and ranchers work hard to feed the United States and the world, and they need to know...
Retailers Respond to Tariff Delay Ahead of Holiday Season
The National Retail Federation issued the following statement from Senior Vice President for Government Relations David French after the Trump administration announced it would delay new tariffs on certain consumer products until December 15. Tariffs on other products are scheduled to take effect September 1.
“While we are still reviewing the details, we are pleased the administration is delaying some tariffs ahead of the holiday season and acknowledging the impact on American consumers. Still, uncertainty for U.S. businesses continues, and tariffs taking effect September 1 will result in higher costs for American families and slow the U.S. economy. During this delay period, we urge the administration to...
Retail Imports Remain at Near-Record Levels Despite Tariffs
Imports at the nation’s major retail container ports are expected to continue at near-record levels this month and the remainder of the year despite a new round of tariffs on goods from China, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.
“Even with virtually everything American imports from China soon to be subject to tariffs, it isn’t quick or easy for retailers to change their supply chains,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “That means American families are ultimately going to pay more for goods they can’t do without. And even if sourcing eventually shifts away from China, it will simply come from other countries. It’s time to stop punishing American businesses, workers and families for China’s wrongdoing.”
President Trump announced last week that new 10 percent tariffs on an additional $300 billon in Chinese goods will take effect on September 1. Coupled with 25 percent tariffs imposed on...
Strong Finish to First Half for U.S. Pork, Beef Exports
U.S. pork and beef exports were above year-ago levels in both volume and value in June, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Led by a rebound in Mexico and China, pork export value was the highest in 14 months, while strong results in South Korea and Taiwan pushed beef export value to the fourth-highest total on record.
June pork exports posted double-digit gains in both volume and value, reaching 212,887 metric tons (mt), up 11% year-over-year, valued at $569.2 million (up 12%). For the first half of 2019, pork exports remained 2% below last year in volume (1.25 million mt) and were down 6% in value to $3.14 billion.
Pork export value averaged $56.99 per head slaughtered in June, up 7% from a year ago and the highest monthly average since April 2018. First-half export value averaged $50.05 per head, down...
Industry Reacts to US Beef Access to the EU
On Friday, the United States and European Union signed a breakthrough agreement to allow access of US beef into the EU. The United States will be able to nearly triple its annual duty-free exports of beef to the EU over the next seven years. American ranchers will be guaranteed a larger share of Europe's beef market, with annual exports expected to increase from $150 million to $420 million once the agreement is fully implemented.
The North American Meat Institute is applauding the Trump Administration's successful efforts to expand access for US beef. Meat Institute President and CEO, Julia Ann Potts, said, “We again thank the Administration for prioritizing the expansion of markets for US meat products. We look forward to continuing to work with the Administration to further reduce barriers impeding, and improve access for, US meat and...
United States and European Union Sign Breakthrough Agreement on U.S. Beef Access to EU
The United States will be able to nearly triple its annual duty-free exports of beef to the European Union (EU) over the next seven years under a new agreement signed today at the White House.
American ranchers will be guaranteed a bigger share of Europe’s beef market, with annual duty-free exports expected to grow from $150 million to $420 million when the agreement is fully implemented.
“American ranchers produce the best beef in the world. Thanks to President Trump’s leadership, this new agreement ensures that American ranchers can sell more...
Retailers Respond to Administration’s Latest Tariff Escalation
The National Retail Federation today issued the following statement from Senior Vice President for Government Relations David French in response to the Trump administration’s plans to impose a 10 percent tariff on $300 billion worth of goods imported from China beginning September 1.
“As we’ve said repeatedly, we support the administration’s goal of restructuring the U.S.-China trade relationship. But we are disappointed the administration is doubling-down on a flawed tariff strategy that is already slowing U.S. economic growth, creating uncertainty and discouraging investment. These additional tariffs will only threaten U.S. jobs and raise costs for American families on everyday goods.
“The tariffs imposed over the past year haven’t worked, and there’s no evidence another tax increase on American businesses and consumers will...
Pork Quarterly Q3 2019: Disease and Trade Issues are Jointly Changing the Global Market
Rising disease pressures are challenging the global market. Specifically, African swine fever (ASF) continues to threaten the global pork market, not only by causing a production drop in Asian countries, but also adding uncertainty to trade and production prospects in other parts of the world. While China’s pork prices have started to move higher, production responses in the rest of the world appear cautious. Other factors, including disease management and weather, are hindering production in Europe and Brazil. The resumption of Sino-US trade negotiations is a positive development, implying a chance for China to review tariffs on US pork imports.
China: Pig Herd Losses Growing
ASF continues to spread in China, with new cases mainly reported in South China. Live hog prices are finally...
Retailers Urge Congress to Approve USMCA
The National Retail Federation today urged Congress to take action after its annual August recess to approve the U.S.-Mexico-Canada Agreement, which would modernize trade between the three countries and replace the landmark North American Free Trade Agreement.
“This agreement provides significant updates to the North American Free Trade Agreement, which has benefitted U.S. retailers, workers and consumers for the past two decades,” NRF Senior Vice President for Government Relations David French said in a letter sent to Congress. “Ratifying USMCA is key to ensuring continued growth in the North American market.”
Since NAFTA took effect 25 years ago, e-commerce has changed how businesses operate and how consumers purchase goods, but the agreement still lacks provisions relating to...
USDA Awards Agricultural Trade Promotion Funding
U.S. Secretary of Agriculture Sonny Perdue announced today that the U.S. Department of Agriculture (USDA) has awarded $100 million to 48 organizations through the Agricultural Trade Promotion Program (ATP) to help U.S. farmers and ranchers identify and access new export markets.
In May, President Trump authorized USDA to provide up to $16 billion in programs to support farmers, which is in line with the estimated impacts of unjustified retaliatory tariffs on U.S. agricultural goods and other trade disruptions. ATP is one of three programs that will assist agricultural producers while President Trump works to address long-standing market access barriers.
“China and other nations haven’t played by the rules for a long time and President Trump is standing up to them, sending a clear message that the United States will no longer tolerate...
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