China to drop tariffs on US pork, NPPC welcomes the decision
China's offer to drop the tariffs on US pork can bring back the smile on the faces of pork producers in the US. Currently, the tariffs are up to 72% and the industry is paying the price for the trade war between Washington and Beijing.
Nevertheless, the move announced by the Chinese officials is also fueled by the increased demand of pork in the domestic market as the ASF situation in the country has reduced the pig national inventory by more than a third. "If media reports are accurate, this is a most welcome development. The Chinese have placed punitive tariffs of 60% on most U.S. pork products, bringing the effective tariff rate on most U.S. pork to 72%. Additionally, pork is in short supply in China because African swine fever has ravaged the Chinese hog herd and significantly reduced the production of pork. When you consider that China is the largest producer and consumer of pork in the world, the importance of this market to U.S. pork producers is clear. U.S. pork exports could single-handedly make a huge dent in the trade imbalance with China,", commented David Herring, President of the National Pork Producers Council (NPPC).
According to Iowa State University economist Dermot Hayes, the Chinese retaliation on US pork has shaved $8 off the price of every hog sold in the United States for well over a year.
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