September 3, 2018

 

Details of aid for US pork sector bared as exports to China decline 9% in H1

 

 

With US pork exports to China down 9% in the six months through June (in value terms), the Department of Agriculture has announced details of a $12-billion aid package for US agriculture, including a nearly $559-million purchase of pork for federal nutrition assistance and child nutrition programmes.

 

The package also includes $200 million for developing foreign markets for US agricultural products and some direct payments to farmers including pork producers. They would receive $8 per hog based on 50% of the number of animals they own as of Aug. 1, according to the National Pork Producers Council (NPPC) in a press release.

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The significant fall in US pork exports to China was mostly attributed to the 50% additional tariff that country imposed in response to US duties on Chinese steel and aluminum imports and on other goods over China's alleged theft of intellectual property and forced transfers of US technology.

 

Meanwhile, exports to Mexico are also down, albeit slightly. In June, Mexico imposed a 10% tariff on US pork in response to US tariffs on Mexican steel and aluminum imports; the duty increased to 20% on July 5.

 

Jim Heimerl, NPPC president, who is also a hog farmer, from Johnstown, Ohio, said the aid package demonstrated President Donald Trump's "commitment to America's farmers, including pork producers".

 

'End trade disputes soon'

 

He added: "While we're grateful and commend the administration for its action to help us, what pork producers really want is to export more pork, and that means ending these trade disputes soon".

 

Aside from calling for a swift resolution to the trade wars, NPPC is asking the White House and lawmakers to approve public-policy initiatives that would buoy pork producers, including ones that would:

 

-- Establish and fully fund a foot-and-mouth disease vaccine bank.

 

-- Prohibit states from regulating agricultural production practices outside their borders.

-- Reform the visa system to address an agricultural labor shortage.

-- Give the US Department of Agriculture oversight of lab-produced cultured protein and gene editing in livestock.
 

NPPC also urged the administration to conclude talks on a new trade agreement with Mexico, reiterating its priorities of maintaining the zero-tariff rate on pork traded with that country and of lifting the tariffs on steel and aluminum from Mexico so it will drop its retaliatory tariffs on US pork and other products.

 

(On Aug. 27, the US and Mexico announced an agreement on a framework for a new trade deal.)