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China agreed to import a record US$36.5 billion in US farm goods in the phase one trade deal signed in January, with pork expected to be key to reaching the mark. Photo: Reuters

US pork exports to China surge beyond pre-trade war levels

  • Brazil’s JBS SA and China’s WH Group, owner of Smithfield Foods, have both witnessed significant increases in shipments this year, according to Panjiva
  • China agreed to import a record US$36.5 billion in US farm goods in the phase one trade deal signed in January, with pork expected to be key to reaching the mark

US pork exports to China have surged beyond pre-trade war levels, led by higher shipments from Brazil’s JBS SA and China’s WH Group, owner of Smithfield Foods, according to Panjiva, the research unit of S&P Global Market Intelligence.

JBS may have shipped 370 per cent more US pork to China this year through until the end of August than at the same period in 2017, while exports linked to WH Group rose 90.1 per cent, Panjiva said on Tuesday. Meanwhile, Arkansas-based Tyson Foods shipped 7.3 per cent less pork to China compared to the same period in 2017.

US President Donald Trump in April ordered meat processing plants in the United States to remain open to ensure domestic meat supplies despite coronavirus outbreaks among workers.

JBS told Reuters in April, when plants across the US were closing due to outbreaks, that it reduced exports to focus on meeting domestic demand.

JBS did not immediately respond to requests for comment on Tuesday.

Democratic US Senators Elizabeth Warren and Cory Booker in June asked meat companies how much they exported to China during the pandemic.

JBS said in response that its total market share of US pork to China had been less than 10 per cent. Exports are comprised largely of products like pigs’ feet and livers that American consumers generally do not eat, JBS said.

Smithfield, in an emailed statement to Reuters on Tuesday, said it would not give preference to foreign customers.

China agreed to import a record US$36.5 billion in US farm goods in the phase one trade deal signed in January, with pork expected to be key to reaching the mark.
Chinese demand is seen rising further after Beijing blocked imports from Germany, which has suffered an outbreak of a pig disease.

US meat production has recovered as plants have reopened after being hit by Covid-19. Frozen pork supplies in cold-storage facilities reached a three-month high in August, according to the US Department of Agriculture.

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