NPPC leader: Pork industry dependent on free, fair trade

It’s increasingly important we have free and fair trade,” said NPPC President R.C. Hunt.

Dan Grant

Published: Jun 15, 2012

Access to key markets around the world likely will be even more critical to determine profit margins for U.S. pork producers in the future, according to R.C. Hunt, president of the National Pork Producers Council.

Pork production is projected to grow nationwide at a pace that should continue to eclipse domestic consumption.

“Personal, disposable income is flat (in the U.S.),” said Steve Meyer, president of Paragon Economics. “Meanwhile, retail (pork) prices are still close to record highs.”

U.S. hog farmers have been increasing litter sizes at a clip of about 2 percent per year for the past four years.

Farmers also have added 1 percent more breeding sows so far this year and higher finishing weights have added to the pork supply.

The production and consumption trends suggest U.S. pork producers could become more reliant on export sales to remain profitable.

“The future of the U.S. pork industry depends on free and fair trade,” Hunt said this month at the World Pork Expo in Des Moines.

Pork producers last year exported a record $6.1 billion worth of U.S. pork, which accounted for 27 percent of domestic production.

The foreign pork sales last year added about $56 to the value of each hog in the U.S., according to Hunt.

U.S. pork exports the first four months of this year increased 6 percent in volume and 16 percent in value, the U.S. Meat Export Federation reported.

“The first quarter was excellent,” Hunt said. “But I don’t know if we can meet (last year’s record exports).” April pork exports to Japan were down 6.2 percent while exports to South Korea the first quarter declined 31 percent.

Meyer said the buildup of domestic swine herds in South Korea and China, the rising value of the U.S. dollar, and a recession in the European Union could slow U.S. pork exports the rest of this year.

Hunt remains optimistic, though, about the long-term potential of U.S. pork exports. He said there is great market potential in Vietnam and Russia if the U.S. can overcome technical barriers in each market.

He said Russia’s entry into the World Trade Organization presents an opportunity to negotiate a binding, bilateral trade agreement.

“As foreign markets grow, it’s increasingly important we have free and fair trade,” Hunt said. “We must demand a fair and level playing field.”

The implementation of free trade agreements with Colombia, Panama, and South Korea is expected to generate an additional $770 million in pork exports each year, he added.

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