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Montevideo, November 27th 2022 - 17:59 UTC

 

 

Record US port exports to China while US consumers face shortages

Thursday, May 14th 2020 - 07:46 UTC
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Processors temporarily closed about 20 U.S. meat plants as the virus infected thousands of employees, prompting meatpackers and grocers to warn of shortages Processors temporarily closed about 20 U.S. meat plants as the virus infected thousands of employees, prompting meatpackers and grocers to warn of shortages

U.S. President Donald Trump ordered meat processing plants to stay open to protect the nation's food supply even as workers got sick and died. Yet the plants have increasingly been exporting to China while U.S. consumers face shortages, analysis of government data showed.

Trump, who is in an acrimonious public dispute with Beijing over its handling of the coronavirus outbreak, invoked the 1950 Defense Production Act on April 28 to keep plants open. Now he is facing criticism from some lawmakers, consumers and plant employees for putting workers at risk in part to help ensure China's meat supply.

“We know that over time exports are critically important. I think we need to focus on meeting domestic demand at this point,” said Mike Naig, the agriculture secretary in the top U.S. pork-producing state of Iowa who supported Trump's order.

Processors including Smithfield Foods, owned by China's WH Group Ltd, Brazilian-owned JBS USA and Tyson Foods Inc temporarily closed about 20 U.S. meat plants as the virus infected thousands of employees, prompting meatpackers and grocers to warn of shortages. Some plants have resumed limited operations as workers afraid of getting sick stay home.

The disruptions mean consumers could see 30% less meat in supermarkets by the end of May, at prices 20% higher than last year, according to Will Sawyer, lead economist at agricultural lender CoBank.

While pork supplies tightened as the number of pigs slaughtered each day plunged by about 40per cent since mid-March, shipments of American pork to China more than quadrupled over the same period, according to U.S. Department of Agriculture data.

Smithfield, which China's WH Group bought for US$4.7 billion in 2013, was the biggest U.S. exporter to China from January to March, according to Panjiva, a division of S&P Global Market Intelligence. Smithfield shipped at least 13,680 tons by sea in March, Panjiva said, citing its most recent data.

Smithfield, the world's biggest pork processor, said in April that U.S. plant closures were pushing retailers “perilously close to the edge” on supplies.

The company is now retooling its namesake pork plant in Smithfield, Virginia, to supply fresh pork, bacon and ham to more U.S. consumers, according to a statement. The move is an about-face after the company reconfigured the plant last year to process hog carcasses for the Chinese market, employees, local officials and industry sources told Reuters.

Year-to-date, about 31per cent of U.S. pork has been exported, totaling about 838,000 tons, according to the U.S. Meat Export Federation. One-third of that volume went to China, accounting for more than 10per cent of total first-quarter production, the industry group said.

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