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US-ally trade wars
China

China’s US pork imports could soar as part of efforts to resolve trade war

  • Imports of the meat could rise to 300,000 tonnes in 2019, sources say
  • Total will be affected by outbreak of African swine fever, which has devastated hog production in China

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China’s pork production in 2019 could drop by more than 25 per cent from last year because of the African swine fever outbreak, an analyst said. Photo: Reuters
Bloomberg

China may increase US pork imports to a record this year as part of a commitment to bolster purchases of American farm goods to resolve the trade war, according to people familiar with the situation.

Imports of the meat could rise to 300,000 tonnes in 2019, the people said. That amount would be 81 per cent more than the 166,000 tonnes in 2017, before the trade dispute started. One of the people said China may order 200,000 tonnes in the first half of the year alone.

The final volume would depend on the outbreak of African swine fever in China, according to one of the sources. The disease, which is fatal to pigs and is proving hard to contain, has devastated hog production since it was first reported in August and slashed the sow-breeding herd in the world’s biggest pork market by 15 per cent.
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“All protein imports may rise,” said Pan Chenjun, an analyst at Rabobank International in Hong Kong. Increased US pork imports alone “cannot offset the pork shortage in the country”.

A source said China may order 200,000 tonnes of pork in the first half of 2019 alone. Photo: Reuters
A source said China may order 200,000 tonnes of pork in the first half of 2019 alone. Photo: Reuters
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The cullings have pushed up prices in China and led to it making its third-biggest weekly purchase of pork from the US ever as the trade war boosted tariff levels to 62 per cent. The US agriculture department expects total Chinese pork imports to jump 28 per cent this year with Brazil the biggest beneficiary. China’s commerce ministry did not reply to a request for comment.

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