Hog prices have plunged in the United States and because Canada is integrated with the U.S., Canadian prices are also dropping.
“According to Iowa State University Economist Dermot Hayes, hog futures dropped $18 per animal, amounting to a $2.2 billion loss on an annualized basis, since March 1 when speculation about U.S. pork access to the critical Chinese market began," saidJim Heimerl, president of the National Pork Producers Council and a hog farmer from Johnstown, Ohio,
Jim Monroe, senior director of communications for NPPC. said it is “very concerned about retaliation against U.S. agriculture, including pork, in response to tariffs placed by the U.S. on steel and aluminum.
“Canada and Mexico are important export markets for U.S. pork and this significantly heightens our concern,” Monroe said.
Last year the U.S. shipped $1.5 billion of pork to Mexico, making it the largest export market for U.S. pork, and almost $1 billion to Canada, which ranked fourth.
“The market disruption caused by export market uncertainty comes at a time when U.S. pork is expanding production to record levels,” Heimerl said.
“Five new pork processing plants have recently opened or will soon begin operations, increasing U.S. pork production capacity by approximately 10 percent from 2015 levels by next year.
‘Exports accounted for more than $53 of the average $149 value of a hog last year and support over 110,000 U.S. jobs,” Heimerl said.
