COLUMBIA, Mo. — As the U.S. meat industry celebrated record pork and beef export values for 2014, experts warned an ongoing West Coast port slowdown could eat away at the volume of meat shipped this year.

Higher meat prices helped beef export value climb 16 percent in 2014, according to USDA reports. The total value of pork exports rose 10 percent. Overseas buyers were willing to pay more for meat, even as U.S. pork and beef prices increased because of supply issues that included swine diseases and a smaller beef breeding herd.

But meat exports hiccupped late last year, said U.S. Meat Export Federation CEO and President Philip Seng. “The West Coast port congestion is extremely troubling, because the delays faced by exporters in December have become even more severe in 2015,” he said.

“If this dispute is not resolved soon, the meat industry will have to win back long-term customers who still want our product, but have no choice but to seek alternative suppliers.”

At issue is a dispute between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Assoc. (PMA).

The PMA negotiates maritime labor agreements with the ILWU at 29 ports along the West Coast. The ILWU has slowed down labor availability, during contract negotiations, at the Long Beach, Los Angeles, Oakland, Seattle and Tacoma ports.

A federal mediator has worked with the groups, who still had not resolved contract differences late last week, 14 weeks into the labor slowdown.

Affects value more than volume

The port labor slowdown in November and December apparently impacted meat export value rather than volume.

The USDA reports pork and beef exports to Japan – the leading export market for U.S. beef and one of the highest value markets for its pork – remained at similar volumes, in November and December, as in 2013.

The meat industry concern is mainly due to a preference for fresh, chilled meat among high-value export markets. Shipping delays can cause exporters to freeze meat intended to be shipped as fresh. Beef that was originally intended for Japan but had to be frozen declines in value, said Ron Plain, University of Missouri agricultural economist.

That frozen product then sits in cold storage near ports until it can be shipped. “Even once an agreement is reached, it will take quite some time before backlogged product can be moved through those ports and we can get back to the normal shipping time,” explained Plain.

Congress is urging leaders of both sides to come to a resolution, citing agriculture as one of the industries hardest hit by the labor slowdown.

“As these negotiations continue, the U.S. agriculture industry suffers as our specialty crop producers are facing lost export sales and increased costs for cold storage, and the U.S. meat and poultry industry estimates losing at least $40 million each week. This will have a long-term impact as well, as our farmers lose market share,” stated a bipartisan letter from the House of Representatives Jan. 30.

Meat industry watchers were already expecting softer beef and pork exports in 2015. The January USDA forecast put beef volume at 2.525 million pounds, a 2 percent decline, with a stronger U.S. dollar and higher prices offsetting robust Asian demand. Pork exports were forecast to increase 10 percent, with early gains in the Canadian and European markets.

Impacts of the delay reaches to beef packers who are already dealing with trade impacts of a stronger dollar. “The slowdown in meat exports the past couple of months and the appreciation of the dollar do little to set packers minds at ease that they will be able to profit from harvesting cattle,” said Andrew Griffith, University of Tennessee livestock economist.

That sets up potential price pressure for fed cattle. “Packers and cattle feeders will be like bulls butting heads for the next several months.”

The labor slowdown has also created relative scarcity for refrigerated transportation, which also makes packers wary. “It is impacting the revenue that comes to packing plants, and therefore impacting what packing plants are willing to bid on livestock for slaughter,” Plain explained.

The National Pork Producers Council, along with beef and other food industry interests, issued an open letter last month concerning the port slowdown to the White House, lawmakers, the PMA and the ILWU. The letter pointed out recent increases in food and agriculture products exported has been beneficial to both West Coast ports and dock workers.

“But the apparent indifference by (the PMA and the ILWU) to the impact the slowdowns are having on our sectors is disturbing,” the groups wrote.