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...

Walmart Announces Plan to Invest $1.2 Billion to Upgrade Logistics in China

Ryan McDaniel, Senior Vice President of Walmart China Supply Chain, announced Monday that Walmart will increase its investment in its supply-chain logistics. In addition to building the first customized perishable food distribution center, the South China Fresh Food Distribution Center, the company plans to increase investment in its supply-chain logistics in China by RMB 8 billion, or about $1.2 billion, building or upgrading more than 10 logistics distribution centers over the next 10-20 years.

Walmart invested more than RMB 700 million to build the South China Fresh Food Distribution Center, which has been in operation since March 2019. It currently serves more than 100 Walmart stores in Guangdong and Guangxi, with daily distributing capacity of up to...

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...

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...

African Swine Fever Affects China's Pork Consumption

China’s pork consumption has dropped by 10% to 15%, year-to-date, by our estimates, driven by food safety concerns. The level of consumption change varies greatly between the different distribution channels. Looking forward, and reflecting on the current situation and trends, it is quite possible we have seen the ‘peak’ of pork consumption.

Pork Consumption in China has Dropped by 10% to 15%

The losses in China’s pig herd are very difficult to estimate – estimated losses range from 20% to 70%. Data from the Chinese Ministry of Agriculture and Rural Affairs (MARA) has the sow herd down by 22% in the year to April – this is one of the most optimistic estimates we have seen. However, hog and pork prices struggled in April and May, after a brief surge in March, raising significant questions...

Beef Quarterly Q2 2019: Changing of the Guard in the Beef Trimmings Market

The world’s largest beef importer, China, is at the centre of growth in beef trade in general, and trimmings trade specifically. Many of the cuts imported by China have been to satisfy the local cuisine. But as diets and foodservice change, this now includes a growing trend in trimmings trade.

The growing demand for trimmings from Asian countries will create additional competition for the US but it is not expected to shift the market yet. Suppliers of trimmings into the global market should be conscious of possible changes in the trade. While steady growth is evident in the Chinese market to date, a short-term demand increase across all proteins as a result of African Swine Fever will likely cause a spike in demand for trimmings...

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...

China Says Making Progress on African Swine Fever Vaccine

China will start work on clinical trials of an African swine fever vaccine, state media said on Friday, as the disease continues to spread through the world’s biggest hog herd.

State-owned Harbin Veterinary Research Institute has found two vaccine candidates, proven in laboratory tests to offer immunity to the disease, China National Radio said in a post on China’s microblogging site Weibo.

“In the next step, the Chinese Academy of Agricultural Sciences will accelerate the progress of pilot and clinical trials, as well as vaccine production,” said the report...

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...