Farms.com Home   News

Retaliatory Duties on U.S. Pork Erodes Profitability of Producers

The Pioneer Chair in Agribusiness with Iowa State University calculates the imposition of retaliatory tariffs on U.S. pork will shift the profitability of U.S. pork producers from break even to losing money.
 
Trade was among the top of mind issues discussed last week as pork sector stakeholders from around the world gathered in Des Moines for World Pork Expo 2018.
 
Dr. Dermot Hayes, a Professor and Pioneer Chair in Agribusiness with Iowa State University, says the reaction to U.S. tariffs imposed on imported aluminum and steel was swift and for the pork industry costly.
 
Dr. Dermot Hayes-Iowa State University:
 
China placed a 25 percent duty on U.S. pork April 1 and in the week before and afterwards U.S. live hog prices stretching out a full year were down significantly.
 
That's in part because some of the products we export to China don't really have another alternative market.
 
Mexico imposed a 10 percent duty on U.S. hams and shoulders and that will go to 20 percent in early July.
 
Source : Farmscape