U.S. Pork Industry Battling Challenges, NPPC President Tells Capitol Hill

The U.S. pork industry faces numerous challenges both at home and abroad that, if not addressed, will pose significant harm to our farms, rural communities and ultimately consumers, National Pork Producers Council (NPPC) President David Herring, a pork producer from Lillington, N.C., testified this morning before the House Agriculture Subcommittee on Livestock and Foreign Agriculture.

“One of the most damaging threats to the U.S. pork industry has been the punitive, retaliatory trade tariffs that China and other countries have imposed,” Herring told the subcommittee.

China is the largest consumer and importer of pork in the world, but U.S. hog farmers have been sidelined, Herring told the subcommittee, due to China’s...

Retailers Still Stocking Up Ahead of Possible Tariffs, but More Slowly

Imports at the nation’s major retail container ports will remain at high levels this summer but are expected to grow only modestly compared with last year’s rush to bring merchandise into the country ahead of scheduled tariff increases, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

“Retailers still want to protect their customers against potential price increases that would come with any additional tariffs, but with the latest proposed tariffs on hold for now..."

Retailers Back Bill Requiring Congressional Review of Tariff Hikes

The National Retail Federation welcomed legislation introduced today that would strengthen congressional authority over tariff increases like those imposed by the Trump administration during the past year.

“We agree with the need to deliver fair and balanced trade deals, but taxing Americans isn’t the answer — especially without a single vote from Congress,” NRF Senior Vice President for Government Relations David French said. “At a time when American businesses and consumers are facing unprecedented tariffs imposed unilaterally, it’s time to reexamine the appropriate balance on trade policy between Congress and the executive branch. This legislation represents an important step forward. We urge members of both parties to join this effort and protect hardworking Americans from...

NRF Warns USTR to Avoid Additional Tariffs, Releases Study on Consumer Impact

The National Retail Federation today urged the Office of the U.S. Trade Representative to avoid 25 percent tariffs on $300 billion in Chinese goods and released a new study examining key product categories and the negative impact on American consumers.

“We support efforts to achieve better trade deals, but American consumers shouldn’t be caught in the crosshairs,” NRF Senior Vice President of Government Relations David French said during testimony prepared for a USTR hearing this afternoon. “It’s time to reevaluate a strategy based solely on tariffs and work with our allies to put international pressure on China.”

“For most of the consumer products on this list, there are very few alternative sources of supply,” French added. “It would be impossible for all market participants in our industry to...

Chairman Roberts Hears from Administration on Current, Future Ag Trade Efforts

U.S. Senator Pat Roberts, R-Kan., Chairman of the Senate Committee on Agriculture, Nutrition, and Forestry, today held a hearing titled, “Certainty in Global Markets for the U.S. Agriculture Sector.”

Below are Chairman Roberts’ remarks as prepared for delivery:

"Good morning. I call this meeting of the Senate Committee on Agriculture, Nutrition, & Forestry to order.

Ambassador Doud, Undersecretary McKinney, and Dr. Johansson, we are happy to have you all back again before the Committee to discuss the need for certainty in our global agricultural markets...

U.S. Pork Producers Seek Main Course, Not Crumbs

Expanding U.S. export markets is vital to the success of American pork producers, but trade disputes with some of our top markets, most notably China, are hampering growth and have caused severe financial harm to U.S. hog farmers, National Pork Producers Council Vice President and Counsel of Global Government Affairs Nick Giordano said today at a Global Business Dialogue event in Washington, D.C.

“Mostly because of free trade agreements, the United States is the leading global exporter of pork. As a result, U.S. pork is an attractive candidate for trade retaliation. America’s hog farmers – and many other sectors of U.S. agriculture...

Retailers Continue to Stock Up Inventory to Get Ahead of More Tariffs

Imports at the nation’s major retail container ports are expected to continue to grow this summer as retailers stock up inventory to get ahead of higher tariffs, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

“With a major tariff increase already announced and the possibility that tariffs could be imposed on nearly all goods and inputs from China, retailers are continuing to stock up while they can to protect their customers as much as possible against the price increases that will follow,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Tariffs are taxes paid by American businesses and consumers, not foreign governments. Retailers will continue to do everything they possibly can to mitigate the impact of tariffs on consumers, but if we see further escalation in the trade war, it will be much more difficult to avoid higher price tags on a wide range of products...

NPPC Appeal: Let's Move Forward with USMCA, Leave Tariffs at Zero

In response to President Trump’s plan to impose five percent tariffs on all Mexican imports as of June 10, 2019, David Herring, president of the National Pork Producers Council and a pork producer from Lillington, North Carolina, issued the following statement:

“We appeal to President Trump to reconsider plans to open a new trade dispute with Mexico. American pork producers cannot afford retaliatory tariffs from its largest export market, tariffs which Mexico will surely implement. Over the last year, trade disputes with Mexico and China have cost hard-working U.S. pork producers and their families approximately $2.5 billion.

“Let’s move forward with ratification of the United States-Mexico-Canada trade agreement, preserving zero-tariff pork trade in North America for the long term; complete a trade agreement with Japan; and resolve...

Senators Raise Concerns that USDA Trade Aid will Continue to Benefit Foreign Corporations

Nine U.S. Senators, led by Debbie Stabenow (D-Mich.), Ranking Member of the U.S. Senate Committee on Agriculture, Nutrition, & Forestry, today raised concerns that the U.S. Department of Agriculture (USDA) will continue to allow foreign companies to profit from the Trump Administration’s plan to assist American farmers affected by their trade policies.

Last week, the Administration announced it would provide up to $1.4 billion to purchase commodities targeted by retaliatory tariffs. In the previous round of aid, lucrative purchasing contracts were awarded to several foreign entities, including nearly $62.5 million in pork products from JBS USA, which is owned by Brazilian parent company JBS SA.

“…It is counterproductive and contradictory for these companies to receive assistance paid for with U.S. taxpayer dollars intended to help American farmers struggling with this Administration’s trade policy,” the Senators wrote...

USDA Announces Support for Farmers Impacted by Unjustified Retaliation and Trade Disruption

U.S. Secretary of Agriculture Sonny Perdue today announced that the U.S. Department of Agriculture (USDA) will take several actions to assist farmers in response to trade damage from unjustified retaliation and trade disruption. President Trump directed Secretary Perdue to craft a relief strategy to support American agricultural producers while the Administration continues to work on free, fair, and reciprocal trade deals to open more markets in the long run to help American farmers compete globally. Specifically, the President has authorized USDA to provide up to $16 billion in programs, which is in line with the estimated impacts of unjustified retaliatory tariffs on U.S. agricultural goods and other trade disruptions. These programs will assist agricultural producers while President Trump works to address long-standing...

Restaurant Food Costs: What does ASF Mean for Protein Prices in the US?

Rabobank expects food costs in the US to increase in the second half of the year, as protein prices are impacted by stronger export demand following the African Swine Fever (ASF) outbreak. Pork and chicken prices will be the most impacted. Beef will be the last to see increases materialize, but QSR patty prices are expected to be the most vulnerable component. If a trade agreement with China were to be brokered, price increases would be faster and steeper.

Restaurants Should Expect Rising Protein Prices

For the past two years, restaurants have been favored by a relatively benign food cost environment, which helped compensate for rising costs in other areas (labor, real estate). We expect this situation to change (for proteins) towards the second half of the year and...

Industry Reacts to U.S. Lifting Metal Tariffs on Canada and Mexico 

On Friday, the United States and Canada announced a deal to remove tariffs on Canadian steel and aluminum in exchange for keeping dumped metals from China and other countries out of the United States, paving the way for a similar pact with Mexico. The quota-free deal eliminated the U.S. metal tariffs as well as Canada's retaliatory tariffs on about $12 billion worth of U.S. products, including pork and beef. The 25% tariff on steel and 10% tariff on aluminum from Canada and Mexico were a major hurdle to ratification of the new trade deal to replace the North American Free Trade Agreement.

U.S. Secretary of Agriculture Sonny Perdue stated that Congress should swiftly move to ratify the USMCA after the Section 232 Tariffs were removed from Canada and Mexico. "The announcement is a big win for American agriculture and the economy as a whole. I thank President Trump for negotiating a great deal and for negotiating the removal of these tariffs...

Latest Tariff List is ‘Far too Great a Gamble for the U.S. Economy,’ says NRF

The National Retail Federation issued the following statement from President and CEO Matthew Shay after the Trump administration released a list of $300 billion of Chinese goods that will be targeted by additional tariffs of 25 percent.

“We support the administration’s efforts to deliver a meaningful trade agreement that levels the playing field for American businesses and workers. But the latest tariff escalation is far too great a gamble for the U.S. economy. Slapping tariffs on everything U.S. companies import from China – goods that support U.S. manufacturing and provide consumers with affordable products – will jeopardize American jobs and increase costs for consumers.

“Taxing Americans on everyday products like clothes and shoes is not the answer for holding China accountable. Working with our allies who share the same concerns and immediately rejoining TPP are more effective ways to put pressure on China without...

NPPC Statement on Planned Trade Relief Package

The Trump administration today indicated it is planning a trade relief package in response to the U.S. trade dispute with China. The following statement may be attributed to David Herring, a pork producer from Lillington, North Carolina and president of the National Pork Producers Council:

“U.S. pork has suffered from a disproportionate share of retaliation due to trade disputes with Mexico and China. This retaliation turned last year — which analysts had forecast to be profitable — into a very unprofitable time for U.S. pork producers. The financial pain continues...