Source: Tom Johnston, MEATINGPLACE, 7/30/19


The Chinese government has announced a program that mandates a boost in domestic pork production to shore up supplies and stabilize prices ravaged by African swine fever ASF, according to a report by CNN.

China’s loss of 13 million tons of pork — the equivalent of the entire yearly U.S. pork production volume — in the last year is compelling its leaders to move ahead with domestic action as some dealings for international help simmer.

President Donald Trump told reporters at a news conference on Friday that, while talks with China will resume this week, he doesn’t expect Beijing to make a deal anytime soon. He predicted that the Chinese would hold out for the next U.S. presidential election in November 2020 in hopes that a more flexible president wins.

“I don’t think, personally, China would sign a deal if I had a 2 percent chance of losing the election,” Trump said, according to a White House transcript. “I think China would probably say, 'Let’s wait.  Let’s wait. Maybe Trump will lose and we can deal with another dope or another stiff.’’’

U.S. pork producers remain hopeful that a new deal with China would eliminate the hefty 62% tariff that the National Pork Producers Council estimates has forced them to miss out on a sales opportunity of $1 billion per year, but the president’s remarks and China’s actions send a different signal.

Those actions will mandate 13 cities in the pork-centric Guangdong province to collectively produce 34 million pigs this year. City governments will subsidize pig farms and require banks to make credit and favorable insurance policies available to pig farmers and pork processors, CNN reports.

To regulate pricing, Chinese officials said they would reward city governments that facilitate consolidation by eliminating smaller local butchering operations. China will earmark $11.6 million from the provincial budget for the effort.

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