China raises pork import tariff

The Ministry of Finance in China announced on December 15 that the import tariff for pork will be increased. Last year, the level of the levy was reduced to curb inflation in the country due to a shortage of pigs.

The import tariff for pork increases from 8% to 12%. That is the rate that was also valid before the reduction. The ministry reports that the adjustment is being made to stabilize domestic prices. Pork yields have been below cost levels since the third quarter, despite prices having recovered somewhat recently.

Additional rates for United States
The United States reacted with disappointment to the tariff hike. In addition to the regular levies, American exporters also have to deal with a 'penalty' rate of 25%. This is a result of the difficult political ties between China and the United States. Although efforts have been made to lower the duties for a long time, exporters are now confronted with an increase in the regular duties.

A spokesperson for the United States Meat Exporters' Interest Group (USMEF) said any increase would make the situation more challenging for exporters. So it is possible that the increase in import costs for exporters could negatively affect pork exports to the country.

Steve Wissink

Stef Wissink is an editor at Boerenbusiness and writes about current market developments in the dairy and pig market. He also follows Dutch and international agribusiness.

s.wissink@boerenbusiness. Nl

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