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Pork profits likely hinge on trade resolution

Pork profitability could hang in the balance as the U.S. looks to resolve ongoing trade disruptions.

National Pork Producers Council director of economics Dustin Baker says 2019 should be similar to last year in terms of strong production, so demand will need to hold up.

“We’re hoping to get the steel and aluminum tariffs lifted on Mexico. We currently face a 20 percent tariff on our largest export market by volume, so that’s kind of our number one issue right now.”

There’s also the trade war with China, which Baker says resulted in a 13 percent drop in pork exports between 2017 and 2018.

He tells Brownfield the U.S. should work quickly to negotiate a free trade deal with Japan after pulling out of the Trans Pacific Partnership.

“But that’s probably a little bit further down the road, so the number one priority in the here-and-now is getting the retaliatory tariffs lifted in Mexico.”

Japan and China are among the top value destinations for U.S. pork, while Mexico remains number one for volume.