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U.S. hog farmers brace for trade retaliation

 

The U.S. hog sector is expressing deep concern as the Trump Administration expands its steel and aluminum import tariffs on Mexico, Canada, and the European Union.

Minnesota Pork Producers Association CEO David Preisler says the industry is especially dependent on Mexico, and retaliation could prove costly.

“If you look at last year, we actually shipped about $1.5 billion of product to Mexico.  It was a largest export market by far from a pound standpoint.”

Canada is the fourth largest market for U.S. pork, valued at roughly $790 million.

Preisler tells Brownfield he’s worried the fallout could resemble the Chinese tariff situation and the resulting $18 dollar per-head drop in hog prices.

“Especially as we’ve added packing plant capacity (and) added just plain production, we’ve really done that adding of capability to raise more pigs based on the export market.  So these things are more than concerning.”

Preisler is encouraged by Mexico announcing it will not impose duties on U.S. pork unless the Trump Administration enforces the tariffs.

He says the mix of cuts affected also matters, suggesting pork bellies would not be significant but ham would be.