China partially blocks US Tyson Foods pork meat imports

30 Aug 2022 --- Chinese customs authorities have suspended imports of pig feet from US meat giant Tyson Foods processing plant in Indiana, according to the US Department of Agriculture (USDA).

The suspension came into force on August 29. Currently the reason behind the suspension is not clear.

“We work closely with the USDA and inspection service to ensure that we produce all of our food in full compliance with government safety requirements,” says a Tyson Foods spokesperson.

“We’re confident our products are safe and we’re hopeful consultations between the US and Chinese governments will resolve this matter,” the company notes.

Halt reasoning
The Chinese customs have not provided a detailed explanation on why Tyson’s pork trotters are unsuitable to enter the country's markets. 

“The customs department found problems such as unqualified sensory inspection,” explains the general administration of customs of the People’s Republic of China.

Previously, this month China found ractopamine, a feed additive, in two US company’s imports, which led to the country suspending imports in accordance with the Asian country’s customs laws.

The preceding bans – on US producers AA Meat Products in June and King Meat service this August – were on beef imports.

China blocked meat imports from two other US companies in the last months.“The move is taken to meet the customs’ inspection and quarantine standards in order to ensure the health of Chinese people,” defended Li Yong, deputy chairman of the expert committee of the China Association of International Trade.

Yong claims that these custom halts are not due to any rising tension between China and the US. Saying that the move should not be over-analyzed.

Pork prices bite 
According to the USDA, Chinese consumers are avid eaters of pork meat, with food consumption reaching 40.3 million metric tons in 2020.

Pig meat prices were up 25.6% in July due to production capacity cuts and farmers waiting for higher prices to unload their stocks to the market. On an annual basis, pork prices are up 20.2% in a country where inflation is mostly tamed – 2.7%, according to the national bureau of statistics of China.

Although general food inflation more than doubled from 2.9% in June to 6.3% in July.

While cyclical fluctuations of pork supply and prices are a worldwide phenomenon, such volatilities are especially high in China, partly because most of the country’s pigs are produced on family farms. 

The Chinese government has been trying to reign in pig prices since June when it announced new guidelines for the industry.

Pig herds plummet in Europe
Meanwhile, countries across Europe are seeing a reduction of pig farms, as data shows a 3% decline, in the EU, in the year’s first two months compared to 2021’s pig meat production – with numbers in Germany declining by double digits (-11%).

The latest numbers from the European Commission show that the trend is worsening, with slaughterings down 4.2% until the end of April and metric tons of produced pork declining by 5%. 

A clear example of the declining pig production in Europe is the number of pig farms in Germany, which is down 41% in the last ten years, according to the country’s statistics authority.

By Marc Cervera