Severe Shortage of US Pork Supply... Exports to China Surge Fourfold

Public Exports Increased by 358% Until April This Year
Slaughtering in the US Decreased by 40%, Worsening Supply Shortage

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Due to the COVID-19 pandemic, pork slaughter volume in the United States has plummeted by nearly 40%, intensifying the supply shortage situation. Meanwhile, exports to China have surged to four times the previous year's level, further worsening the supply situation.

According to foreign media such as CNBC, the U.S. Meat Export Federation (USMEF) reported that U.S. pork exports to China from the beginning of this year until the end of last month totaled 291,609 tons (t), a 358% increase compared to 63,734 t exported throughout last year. In March alone, 13,630 t were exported, more than four times the amount shipped to China in the same month last year. On the other hand, domestic pork slaughter volume in the U.S. has decreased by approximately 35-40% this year compared to last year due to plant closures and production slowdowns caused by COVID-19.

As a result, U.S. pork prices are expected to rise by more than 20% by the end of this month as supply decreases by over 30%. Despite the worsening supply and demand issues, Smithfield, the largest pork processing company in the U.S., is known to have sharply increased its exports to China. The company was acquired by China's WH Group in 2013 for $4.7 billion. Since African Swine Fever (ASF) caused a sharp decline in the pig population in China last year, leading to a surge in pork prices, China has significantly increased its imports of U.S. pork.

The Trump administration's trade negotiations with China in January, which led to increased Chinese imports of U.S. agricultural products, have also been pointed out as a cause of pork supply instability. According to the Daily Mail, China agreed to import at least $25.4 billion worth of U.S. agricultural products this year and $19.5 billion next year as part of the trade deal. At the time of the trade negotiations, there were no issues with meat supply, and U.S. farmers still hope for expanded export channels to China, making it difficult for the Trump administration to restrict pork exports.

This content was produced with the assistance of AI translation services.