Dive Brief:
- China, the global leader in pork consumption, will resume pork imports from 14 U.S. plants and warehouses after banning the imports due to the use of ractopamine, a prohibited feed additive.
- "China's decision will 'mean a significant boost in sales for American pork producers,' the USDA said. The agency touted 'China's recognition of strong regulatory controls and the high quality of U.S. pork,'" Reuters reported.
- The USDA hasn't confirmed a date as to when China's pork imports will resume.
Dive Insight:
Both Tyson and Hormel's plants were affected last year when China's ban was put in place to prohibit the imports of any pork produced from hogs that were fed ractopamine, which promotes lean muscle growth in hogs. Reuters could not reach either company for comment.
In August, Smithfield reported that its U.S. pork exports to China increased by 45% in the first six months of the year.
"Smithfield President and Chief Executive Officer Ken Sullivan said pork shipments to China benefited from the company being a wholly owned subsidiary of China-based pork processor WH Group Ltd, which acquired Smithfield for nearly $5 billion in 2013. China's pork herd has declined this year, pushing up domestic meat prices and making imports more attractive," Reuters reported.
With fewer Tyson and Hormel plants to compete with while the ban was still in effect, Smithfield has seen its exports to China rise significantly. That level of exports could be affected now that the ban is lifting.
Last year, U.S. pork exports to China totaled more than $474 million, according to the USDA.