Analysis Pigs
US slaughterhouses allowed to export to China
Developments in the trade war between the United States and China are happening at a rapid pace. After months of mutual tariff increases, the two countries are now talking to each other again. For example, the most recent tariff increases in May have already been paused for 90 days and 23 pig slaughterhouses will be re-approved for export to China in June. Sales figures are getting an immediate boost.
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This spring, many U.S. slaughterhouses for hogs, poultry, and cattle lost their licenses to export to China. Many of these registrations date back to 2020, when expanded access for American meat was part of a major trade deal between the U.S. and China. Many export registrations were re-approved in March of this year, but were temporarily suspended again shortly thereafter due to the trade dispute. Now, 23 pork producers and 86 poultry processors have been re-approved for the Chinese market.
Consequences of export
The Chinese market is also important for pork exporters for the sale of by-products and slaughterhouse waste. It recently became clear that the export of pork from the US to China fell by no less than 34% in the month of April, at the height of the reciprocal tariffs. Exports to countries such as Mexico and Canada also had to take a big hit.
The fact that the rough edges of the trade war seem to have worn off somewhat is now doing the export of American meat good again. According to figures from the American Department of Agriculture, sales of pork to other countries seem to be picking up again sharply. Every week, the American Department of Agriculture announces the volume sold in that week. This rose to 19 tons in the week up to and including June 51.400. That was 96% higher than the average of the four previous weeks. A clear sign that there is recovery on the export markets. Final export figures for the month of May are expected shortly.
For the time being, only pork and poultry processors seem to be approved for the Chinese market. Beef processors are not yet granted new access. The sales figures for American beef are also not showing any recovery after the dip in recent months. The coming months will have to show whether the recovery of the export figures is sustainable and whether the mutual relations have improved permanently.