A leading association representing meat processors is calling for the U.S. to enter “comprehensive trade agreements” with China. Pork exported from the U.S. to China currently faces a 33% tariff rate, in large part due to Chinese retaliation for actions first taken in the Trump administration and continued by President Joe Biden. These Section 301 tariffs were initially implemented in 2018 to combat Chinese theft of intellectual property. 

Last week, the Meat Institute submitted comments in response to the U.S. Trade Representative’s proposed modifications to the Section 301 actions. According to a press release accompanying the comments, last year China was the U.S. beef and pork industries’ third largest value market and the U.S. poultry industry’s second largest value destination.

“The Section 301 tariffs and resulting retaliatory measures imposed by China have caused undue harm to U.S. agricultural exports, including meat exports,” said Meat Institute President and CEO Julie Anna Potts. “U.S. trade policy, such as the one proposed in this Section 301 action, should not inflict pain on domestic producers, companies, and workers. Instead, restoring U.S. leadership in international trade through high-standard, comprehensive trade agreements would be a more effective long-term strategy. Market diversification initiatives, coupled with strategic competition with China, will lift all sectors of the U.S. economy without exacerbating tensions or existing economic hardship.”

Ag groups speak out against looming port strike

A potential strike that could shut down many of the nation’s ports is raising concerns among agriculture and business groups. The International Longshoremen’s Association and United States Maritime Alliance are embroiled in a contract dispute over their current agreement, which expires Sept. 30. The ILA has threatened to strike if disagreements are not worked out before the deadline.

A broad coalition of over 150 associations, including many agriculture groups, sent a letter to President Biden the last week of June urging action. The ILA and USMX missed a June 10 milestone by which they were expected to begin negotiations, increasing fears of a larger breakdown in negotiations. The letter asks the Biden administration to “immediately work with both parties to resume contract negotiations and ensure there is no disruption to port operations and cargo fluidity.”

The contract dispute impacts all ports on the East Coast and Gulf Coast. Currently all ports on the West Coast are operating under a long-term contract, after union representatives and port operators reached a six-year agreement last summer. Any shutdown caused by a strike could cause freight patterns to shift toward these west coast ports to alleviate delays.

Tyson backtracks on antibiotic-free beef plans

Amid continued financial struggles, meat giant Tyson Foods appears to be reducing its production of costly antibiotic-free beef. A report by Bloomberg uncovered numerous pieces of evidence that the program is being scaled back. These include an internal company document verifying that ABF will have reduced availability beginning in January and reports from a major customer that Tyson has informed it that it could no longer provide the product.

Tyson CEO Donnie King recently said on an earnings call that he expects the company to lose $100 million to $400 million for the year. Tyson also backed away from plans to expand no antibiotics ever chicken production last July, in a recognition of the challenges and costs associated with avoiding antibiotics.

In a statement to Bloomberg, the company said, “Tyson Foods is dedicated to maintaining the health and welfare of the animals within our supply chain. We base our decisions on sound science and an evolving understanding of the best practices impacting our customers, consumers and the animals in our care. We continue to offer antibiotic-free beef based on market demand, and our commitment to antibiotic stewardship has not changed.”