BANFF, Alta. — North Americans are not likely to put more pork on their forks, which means industry growth must rely on exports.
“Our consumption in the United States is static, as it is in Canada. We really look to export markets to really grow our business,” National Pork Producers Council president Howard Hill told the Banff Pork Seminar, held Jan. 20-22.
In 2013 the United States exported about 2.14 million tonnes of pork with a value of US$6.05 billion, according to figures from the U.S. Meat Export Federation.
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In the same year, Canada exported 1.18 million tonnes valued at C$3.2 billion.
Hill said trade agreements are needed to keep pork moving.
The North American Free Trade Agreement could be a template for other deals because it has provided considerable benefit to the partners involved, he added.
Asia and Africa are growing markets, while the European Union market is shrinking.
China imports 1.25 million tonnes of pork a year to fill two percent of its domestic needs. However, its imports account for 19 percent of the global pork trade.
China would account for 30 percent of world pork trade if it were to increase its imports to five percent.
“That is why everybody has their eye on China,” he said.
Demand for pork in Japan and South Korea is far greater than their domestic industries can handle. Initiatives such as the 12-nation Trans Pacific Partnership could increase trade in pork and other commodities, providing negotiations continue in good faith.
The TPP membership is growing, and negotiations continue to reduce tariffs and grant wider access to participants.
American agricultural organizations approved when Japan wanted to join, believing it would go along with what the other members had already agreed to for tariff elimination.
Hill said eliminating Japan’s 4.3 percent tariff on imported pork and additional fees known as gate charges would make the market more competitive.
Instead, Japan proposed a list of goods it wants exempted, including pork, beef, dairy, wheat and rice.
Hill said that would set a bad precedent as other potential members could demand the same concessions.
The issue has been a major sticking point in the negotiations but this week Japanese media reported the country was prepared to slash protections on pork as long as there were safeguards to protect domestic producers if imports spiked.
It would also reduce beef tariffs over time and negotiate expanding minimum access quotas for rice.
U.S. farm groups have urged a fast track approach to approving a TPP deal once a deal is negotiated.
barbara.duckworth@producer.com
