The latest USDA report shows that 26.5% of US pork exports went to China in November 2019, making it the largest foreign destination for US pork that month. A year earlier, when the trade war was at its peak, the number was 4.9% — five times smaller than what it is today.
The USDA report also shows that Chinese pork was significantly more expensive than US pork after the swine fever outbreak. Starting from October 2019, the price of pork in China surpassed $3 per pound, which was twice as high as the price of pork imported from the United States, even after being adjusted for tariffs, value-added taxes, and transportation costs. According to USDA, the price gap could open up huge opportunities for the pig farming industry in the United States.
On top of that, the trade deal struck on January 15 assures US pig farmers that they will not have a hard time exporting their products this year. Among the $200 billion worth of goods that China promised to buy in the coming two years, pork makes up 16 percent.
The stock market also shows optimism for pig producers. For example, the stock price of Seaboard Corporation, a leading US pork powerhouse, increased by almost 2% just a day after the trade deal was signed by both countries.
Source : CNN