Source: Tom Johnston, MEATINGPLACE, 1/7/19


U.S. and Chinese officials on Monday kicked off two days of trade talks in Beijing with hopes of ending a 9-month trade war that have stunted meat industry growth.

The meetings come as both countries’ stock markets have been in turmoil, and as the White House contends with a government shutdown now in its third week amid a standoff over funding for a U.S.-Mexico border wall.

Optimism was expressed early Monday on Wall Street with gains in the Dow Jones Industrial Average (0.3 percent), the S&P 500 (0.6 percent) and the Nasdaq Composite (0.9 percent).

Washington wants Beijing to grant U.S. companies greater access to the Chinese market, to protect U.S. intellectual property and to reduce government subsidies given to Chinese firms.

The meat industry is watching closely in hopes that China will scrap retaliatory tariffs of 25 percent on U.S. pork and beef. The National Pork Producers’ Council estimates that America’s farmers shipped nearly $20 billion worth of goods to China in 2017, including $1.1 billion pork products. The National Cattlemen’s Beef Association has estimated beef producers would lose $70 million this year as a result of the trade conflict with China.

In August, the Trump administration announced an aid package of up to $12 billion to help U.S. farmers cope with the financial hit from the trade war.

USDA has paid out $2.78 billion since appropriations expired on Dec. 21, and has processed $5.2 billion of a total of $9.6 billion allotted for direct aid, according to Politico.

Amidst the government shutdown, the agency is making no relief payments to any producer who hadn’t certified his production by Dec. 28, 2018. The new Congress has to approve new funding.

Meanwhile, Agriculture Secretary Perdue reportedly is considering an extension to the Jan. 15 deadline for applications.

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