Trade beef poses a threat to US pork exports

CHICAGO - American consumers are snapping up plentiful low-cost pork, but US farmers are worried that trade spats with key export markets in China, Mexico and Canada could hurt a lucrative part of their pork business.

The domestic demand outlook remains bright thanks to the strong US economy, upcoming spring grilling season and Easter holiday ham purchases.

US goods in general are attractive to foreign buyers thanks to the recent drop in the dollar.

However, trade disputes with China and slow progress in North American Free Trade Agreement (Nafta) talks have clouded prospects for US pork exports, which are crucial for the industry, as roughly one quarter of pork produced in the US is exported.

The US Meat Export Federation (USMEF) said US pork exports were on a record pace, with volumes from January through November 2017 of 2.23-million tonnes, worth $5.9 billion.

That was up from 2.09-million tonnes, worth $5.4bn, for the same period in 2016, according to the industry group.

"Without a doubt, our biggest concern is the trade situation," said Steve Meyer, a Kerns and Associates economist who is also a National Pork Producers Council consultant.

US President Donald Trump’s decision to slap stiff tariffs on US imports of Chinese solar panels and washing machines has sparked fear among pork producers of possible retribution from China, the world’s largest consumer of pig meat and the US pork sector’s No 3 export market.

China trade is always risky, Meyer said, and "the last deal over washing machines and solar panels didn’t help anything."