By DOUG SCHMITZ

Iowa Correspondent

DES MOINES, Iowa — Trade and tariffs, as well as concerns over a potential foot-and-mouth disease (FMD) outbreak, took center stage as this year’s June 6-8 World Pork Expo, which marked its 30th anniversary at the Iowa State Fairgrounds in Des Moines, Iowa.

Each year, more than 20,000 U.S. and international pork producers and other professionals visit the three-day exhibition to attend educational seminars, learn more about the latest industry innovations at the trade show and network with peers.

Among the keynote speakers was Gregg Doud, Office of the U.S. Trade Representative’s chief agriculture negotiator, who told Expo attendees June 6 there “is or will be retaliation against U.S. agricultural exports because of what we are doing in other areas unrelated to agriculture.”

“That retaliation is going to be somewhere in the neighborhood – depending on how you slice and dice it – of over $20 billion of our $140 billion in ag exports,” he said. “Let’s be frank: the lead tip of the spear right now is the pork. You guys are probably retaliated against in the pork industry more than any other industry.”

On June 5, the day before the Expo, Mexico levied punitive tariffs of 10 percent, which were effective that day on unprocessed pork (not including variety meats) in retaliation for tariffs on its metal exports to the United States. The tariff will escalate to 20 percent July 5.

Jim Heimerl, NPPC president and Johnstown, Ohio, pork producer, said Mexico’s decision follows similar retaliation in early April by China, which imposed additional 25 percent tariffs on U.S. pork, reducing live hog values by as much as $18 per animal on an annualized basis.

“The toll on rural America from escalating trade disputes with critically important trade partners is mounting,” he said. “Mexico is U.S. pork’s largest export market, representing nearly 25 percent of all U.S. pork shipments last year.

“A 20 percent tariff eliminates our ability to compete effectively in Mexico,” he added. “This is devastating to my family and pork-producing families across the United States.”

However, Heimerl said the NPPC “appreciated the variety of interests and issues the Trump administration is balancing in its trade negotiations with Mexico, China and other countries.”

“While producers are trying to be good soldiers, we’re taking on water fast,” he said. “The president has said that he would not abandon farmers. We take him at his word.”

According to Dermot Hayes, Iowa State University professor of agricultural economics, U.S. pork producers are losing $2.2 billion – on an annualized basis – due to events leading up to and following China’s 25 percent punitive tariffs in retaliation for U.S. tariffs on aluminum and steel.

“U.S. pork has invested significantly to ramp production to capitalize on growth opportunities around the world, including China and other markets throughout the Asia-Pacific region,” Heimerl said.

“We applaud the administration for making the expansion of agriculture exports a cornerstone of the discussions with China,” he added. “We hope the next round of trade talks with China results in improved market access to a critical export market for U.S. pork and other farm products.”

Heimerl added the market disruption caused by export market uncertainty comes at a time when U.S. pork is expanding production to record levels.

“Five new pork processing plants have recently opened or will soon begin operations, increasing U.S. pork production capacity by approximately 10 percent from 2015 levels by next year,” he said.

In addition, he said exports accounted for more than $53 of the average $149 value of a hog last year and support over 110,000 U.S. jobs.

“We call for an end to these trade disputes so that hard-working U.S. pig farmers can do what they do best: meet global demand for one of our nation’s most competitive export products, one that favorably impacts U.S. trade imbalances with countries around the world,” he said.

Doud said he sees meat as the real opportunity longer-term for demand growth in the world and for the U.S. pork industry’s ability to provide that meat.

“Regardless of all the wrinkles we have going on, we’re able to hold pretty steady on price. That’s amazing,” he said.

“When you’re adding that much production year-on-year, and you’re able to move it and make it all work that tells you two things: number one, the U.S. economy is strong, and number two: the world economy is strong and our ability to export these things is good and getting better,” he added.

Greg Ibach, USDA Undersecretary for marketing and regulatory programs, shared concerns with Expo attendees over a potential FMD outbreak, as well as recent congressional debate over the funding of a FMD vaccine bank as lawmakers create the new farm bill.

“The most important thing we can do each and every day is to maintain our vigilance, maintain our biosecurity, maintain the borders, protection at our borders, and put together an education process that equips farmers, equips tourists, and equips government to be able to continue to keep us disease-free,” he said.

Sponsored by the NPPC and billed as the world’s largest pork-specific trade show, the World Pork Expo’s 30th anniversary was “a great time to look back at all we’ve accomplished as pork producers,” Heimerl said.

“But more important,” he added, the Expo provided the U.S. pork industry “with the perfect place to look forward to the many opportunities and advancements that lie ahead.”