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China to resume U.S. pork purchases

Some good news for the struggling pork industry today, with China indicating it intends to re-open the Chinese market to U.S. pork and live swine.

U.S. Trade Representative Ron Kirk and Agriculture Secretary Tom Vilsack made that announcement today at the conclusion of meetings with Chinese officials in China.  Vilsack calls it “important step forward in cooperation between the countries on agricultural issues.”  According to wire reports, China’s agriculture minister said the country will “quickly resume” U.S. pork imports.  China’s commerce minister is quoted as saying that imports will resume “at an appropriate time”.

In an interview with Brownfield, Nick Giordano, vice president of international trade policy with the National Pork Producers Council, said he’s pleased with the news—but he wasn’t quite ready to offer praise to the Chinese.

“Should this ban have ever been in place? Is it based on science?  No! I mean, it really doesn’t even pass the red-face test. So it’s not costing a whole lot for the Chinese to offer this up,” Giordano says. “Having said that—it’s a very positive development.”

Giordano says if the Chinese follow through on their commitments, U.S. pork could see what he calls “phenomenal growth” in that market.

“Our costs of production are much lower than theirs.  We are the low-cost producer in the world—we’re the number one exporter of pork in the world,” he says. “We are very well situated—but we are going to have to bite, kick, scratch and claw to make sure that they abide by their commitments.”

AUDIO: Nick Giordano (6 min MP3)

U.S. pork exports to China totaled $690 million in 2008 but have fallen by 50 percent this year due to the ban.  NPPC president Don Butler says this is good news for pork producers who have been suffering through an economic crisis for two years.  Butler describes China as; “the largest potential money-making opportunity for the U.S. pork industry.” 

Reacting to the announcement, Nebraska governor Dave Heineman called it “great news for Nebraska’s pork producers.”  He says reopening trade with China will go a long way toward improving the demand side of the equation for the pork industry.