Thailand

IPEF Talks Must Address Technical Barriers to Trade

Thu, 07 Sep 2023 15:50:19 GMT

By Maria C. Zieba, vice president of international affairs for the National Pork Producers Council

Representatives of the Indo-Pacific Economic Framework for Prosperity (IPEF) nations are meeting Sept. 11-17 in Thailand. The National Pork Producers Council (NPPC) urges the Biden administration’s trade negotiators to continue to raise unwarranted food safety, animal health, and technical barriers some IPEF countries have that limit market access for U.S. pork.

The administration launched the regional initiative more than a year ago to forge closer economic ties among the 14 countries that make up the IPEF — Australia, Brunei, Canada, Chile, Fiji, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, South Korea, Vietnam and the United States. The countries have completed four rounds of talks on four broad areas. In the trade area, negotiators have agreed as a negotiating objective only “to seek to craft high-standard, inclusive, free, fair, and open trade commitments that build upon the rules-based multilateral trading system.”

U.S. pork producers — who rely heavily on exports, shipping over 25% of last year’s total production worth nearly $7.7 billion to foreign destinations — are concerned the talks won’t address tariffs and market access issues, including sanitary and phytosanitary measures, that restrict their exports.

For decades, U.S. pork exports have faced depressed exports into Asia many times due to unreasonable regulations and technical barriers to trade inconsistent with international trade rules. NPPC’s priority during these negotiations is to have nations agree to reasonable, science-based sanitary and phytosanitary standards and eliminating unjustified technical barriers.

In the IPEF talks, the U.S. pork industry has raised the nontariff barriers of several countries, including:

• Australia limits U.S. pork for the retail market to products that are heat-processed or frozen and boneless for further processing because of what it claims are risks associated with the transmission of porcine reproductive and respiratory syndrome (PRRS) virus to the Australian swine herd. The restrictions, NPPC has pointed out, are inconsistent with international standards and scientific findings showing that pork trade does not increase the risk of transmitting PRRS.

• The Philippines requires cold storage for imported meat, including pork. Domestically produced meat is exempt from the requirement, which suppresses demand for U.S. pork and violates World Trade Organization rules related to nondiscriminatory treatment of imports.

• Vietnam restricts imported white offal (e.g., intestine, spleen, tongue) first through a ban on the product and now through an inconsistent approval process for allowing it into the country. In early 2014, Vietnam rescinded the import ban on white offal — it lifted a ban on red offal in 2011 — but required paperwork for importation. Many U.S. companies have completed the paperwork but are still awaiting approval from the Vietnamese government.

Successful IPEF negotiations on issues related to supply chains, clean energy and climate change, and taxation and anti-corruption also may improve trade in the region. We look forward to the successful conclusion of an agreement that addresses the myriad of trade-limiting issues faced by our industry. A level playing field in the region would give U.S. pork producers access to the IPEF’s 1.5 billion consumers and $40 trillion of GDP.

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U.S. Pork Trade Value: $61.26 Added to the Value of Each Hog Marketed

Fri, 17 Feb 2023 14:06:27 GMT

Despite what many called a challenging year for U.S. pork exports, at just over $7.6 billion, 2022 was a top-three year for pork export value. This equates to $61.26 added to the value of each hog marketed, explains Courtney Knupp, vice president of international market development for the National Pork Board .

Why is that important? Knupp says 27.5% of U.S. pork production went to international customers last year, adding over $60 to the value of the pig carcass.

“We’re thrilled with those results, and we’re excited to see where 2023 will take us,” Knupp says. “We have a very strong strategy to continue to diversify our markets, have strong presence in those markets on behalf of our producers and staff, and have a big goal to increase and enhance consumption in key regions like Central America and South America.”

Without international markets, today’s pork industry would look very different in the U.S., she adds.

“The international space in the U.S. pork industry provides huge value to our producers. The National Pork Board’s board of directors realizes that and continually funds international market promotion to best place U.S. pork.,” Knupp says.

A Strong Strategy to Grow Exports

An important part of the Pork Board’s international market strategy revolves around investment in a partnership with U.S. Meat Export Federation (USMEF), USDA and the National Pork Producers Council.

Market diversification and carcass utilization will continue to be two key areas of focus in 2023.

“We’re continually targeting and assessing new markets. We see a lot of growing consumption and disposable incomes in regions like Central America. We also have great access there due to the implementation of our free trade agreements in the region,” Knupp says.

In March, Knupp and others will be a part of the U.S. delegation to go to Panama for a USDA ag trade mission. Not only will this allow them to meet directly with customers in the region, but the Pork Board is also conducting a complimentary analysis with one of its partners to best figure out how we go to market there, she says.

“That’s a great example about how we’re always trying to move the needle and establish relationships,” Knupp points out. “Once we’re in market, we’ll move from providing product to a further processing segment to then being able to brand and differentiate U.S. pork in the retail and food service sector, which continues to get more value for the product. We have our eye on that in all major markets, whether we see them as consistent partners, new partners, or ones that we can expand. We’re very optimistic about the opportunities for U.S. pork now and in coming years.”

Chad Groves, senior vice president of sales, marketing and innovation for Seaboard Foods, says market diversification is crucial.

“What doesn’t show up in the numbers, unless you’re close to it, is we’ve moved outside the traditional markets of China, Japan and South Korea. Those three markets have historically carried all of the weight for exports,” Groves says. “What makes me so proud about the industry is they’ve been working over the last few years to develop South and Central America. When those traditional markets were hit hard because of COVID, a strong dollar and other reasons, we were able to quickly pivot and shift product down into Central and South America and Mexico as well.”

He says that’s the power of USMEF, NPPC and the National Pork Board working together to keep profitability up and export markets open whether that’s going to the Eastern Hemisphere or staying in the Western Hemisphere.

^{Bob Ruth traveled with a group of producers and industry leaders in Panama learning about growth opportunities for U.S. pork.}

The Power of the Producer

For Bob Ruth, National Pork Board board member and a Pennsylvania pork producer who recently retired from Clemens Food Group, participating on a trip to evaluate market conditions and opportunities in Panama and Colombia was one of the best decisions he’s made.

“The presence of a pork producer in the market where our customers are at is so very powerful,” Ruth says. “To be able to look that customer right in the eye and explain production practices and things that we do that are very important to those customers is so important.”

Some of those topics include sustainability and the high quality and safety of U.S. pork product, he notes. He also spent a lot of time sharing about the We Care principles U.S. pork producers abide by each and every day.

Animal welfare is prioritized differently around the world, and that’s why Ruth believes it’s absolutely important to engage about in conversation during these trips.

“It’s something we’re on the leading edge of, which makes us a little bit unique,” he says. “That really helps our marketing efforts. The We Care principles are something I credit the Pork Board for coming up with and our producers for embracing. I think it’s a great example of one of the areas that we show leadership in the marketplace.”

Ruth says he takes every opportunity he can to encourage producers to make sure they volunteer for upcoming trips because of that power they have sitting across the table from a customer.

^{(l to r) Chad Groves, Dermot Hayes, Courtney Knupp, David Newman and Kelli Wicks in Singapore learning about the marketplace.}

A Rising Tide Lifts All Ships

Perhaps that’s why Groves is taking off time from his busy schedule to travel to Singapore and Thailand on a trip to learn more about opportunities for U.S pork export growth in these markets.

“This is an industry that’s given so much to me and my family. By being on the board, by participating in these international trips, it allows me to give back to the industry,” says Groves who will be representing pork producers and packers. “A rising tide lifts all ships. We want consumers in each one of those markets to recognize the safety, quality and consistency of U.S. pork in the market.”

The two countries Groves will be visiting are very different in terms of how the U.S. does business in each and how the U.S. exports to each.

“Singapore historically has been open to U.S pork and is a Top 10 per capita consumption country. A lot of times in Southeast Asia, most producers and packers think of Japan, China and South Korea, the traditional powerhouses. But while Singapore has lower population than those countries, the high per capita consumption really makes up the gap and puts them in the top 10.”

When it comes to Thailand, Groves says the U.S. doesn’t have a free trade agreement in place. On the trip, their team plans to focus energy in Thailand working to better understand their needs and build relationships to set the foundation for future opportunities.

“I’m excited to build relationships within both countries and tell the story of the great production, both processes and product that we produce, to tell the story of how U.S pork can be differentiated in the marketplace,” Groves says.

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Driver Caught in Thailand Smuggling Pig Carcasses from Cambodia

Mon, 05 Dec 2022 19:07:54 GMT

Livestock and customs officials in Thailand seized about 1.5 metric tons of pork carcasses on Dec. 4. The pork was had been smuggled into Thailand’s eastern border province of Sa Kaeo from Cambodia, reports Thai PBS World .

The driver of the pickup truck transporting the pork was arrested after a brief chase, the article said. The driver allegedly admitted the carcasses were being delivered to a customer.

Thai businessmen will place an order for pig carcasses with their Cambodian counterparts, a livestock official told Thai PBS World. Then, they will arrange for the meat to be sent to a “rendezvous” somewhere near the Thai border, opposite Sa Kaew Province.

After the contraband is smuggled across the natural border, the article said a pickup truck is waiting to drive the meat to the buyers. To prevent being caught or attracting attention from police and security forces, the carcasses are typically covered with gunny bags.

In October, two shipments of smuggled pork were intercepted, with one of the shipments weighing about five metric tons.

The Thai Livestock Development Department said it is tightening controls on pork being smuggled into the country to prevent the possible spread of the highly infectious virus, African swine fever (ASF). Although ASF presents no food safety or health risk to humans, it is highly transmissible and deadly in both domestic and wild pigs.

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Pig Farmers Angered by Havoc from Suspected African Swine Fever in Thailand

Mon, 31 Jan 2022 15:28:31 GMT

By Patpicha Tanakasempipat

Business began unravelling for Thai pig farmer Jintana Jamjumrus two years ago, after dozens of her animals got feverish and died within days of a mysterious illness she suspected of being a viral disease with no known vaccine, African swine fever (ASF).

This month, officials identified the first case of ASF in Jintana’s province of Nakhon Pathom, after years of saying it was not in Thailand, unleashing a political firestorm as pork prices hit an all-time high near which they may stay for months.

“There’s no way they didn’t know. Pigs died all over the country ... Why the cover-up?” Jintana, 75, asked about the deaths in previous years. “What can they do now? There’s nothing left.”

In parliament, an opposition lawmaker accused the government of a years-long cover-up, though a deputy agriculture minister denied this, saying authorities had successfully kept out the disease in previous years.

But small farmers, whose losses have driven 54% of them out of business in the past year, are sceptical, particularly as the viral disease, for which there is no vaccine, has killed hundreds of millions of pigs in Europe and Asia since 2018.

“I had to let the sick ones die and sell off the healthy ones,” said Jintana. “My business was all gone.”

Earlier warning would have saved their livelihoods, say the small farmers, and perhaps averted the pork shortage that drove retail prices in Bangkok to 215 baht ($6.47) per kg on Jan. 11, the highest daily average in a database stretching back to 2001.

The high prices led to a ban on exports of live animals until April, and consumer prices could stay high as production could take months to recover, putting further strain on rural communities already reeling from the hog losses.

Since the confirmation, Thailand has uncovered African swine fever in 22 areas of 13 provinces and culled more than 400 pigs, all on small farms, said Bunyagith Pinprasong, the director of the Bureau of Disease Control and Veterinary Services.

Between 2019 and 2021, livestock authorities culled nearly 300,000 pigs deemed at high risk of African swine fever, though it was never detected in any samples from dead pigs, Bunyagith told Reuters.

Most pig deaths earlier were because of porcine reproductive and respiratory syndrome (PRRS), he said.

“We implemented strict and effective measures to prevent ASF, which is why it wasn’t found before,” he said. “We will control and curb its spread until a vaccine is developed.”

Lower Production

By the time Thailand confirmed the first ASF outbreak this month, nearly 100,000 smallholders, or those rearing up to 50 pigs, had disappeared, leaving just 79,000, government figures on the livestock industry show.

Small farmers’ herds were halved to 1 million pigs, accounting for the bulk of the loss in the national herd, which stands at 10.85 million, down 17% from last year’s 13.1 million, the data shows.

Smallholders and small farms, or those with herds of between 51 and 500 animals, normally contibute about 30% of Thailand’s pork production of about 19 million to 20 million pigs, about 18 million of which are consumed domestically and the rest exported.

“The current decrease in pigs is due to previous disease outbreaks, not because of African swine fever,” said Bunyagith, adding that PRRS and classical swine fever were the most common diseases in Thai pigs, with vaccines available for both.

“But whether PRRS or ASF, there will be losses for smallholders without a good farm management system.”

While small farms struggle, shares of Thailand’s biggest food producer, Charoen Pokphand Foods Pcl, jumped in January to their highest in nearly seven months, and shares of peer Thaifoods Group Pcl hit their highest since April.

Further shrinking of small farms’ market share threatens longer-term implications for food prices, said Kevalin Wangpichayasuk of Kasikorn Research Center.

“Smallholders’ gradual disappearance means fewer players and lower competition, which will have an impact on price,” Kevalin told Reuters.

Bunyagith said rearing new animals to bridge the gap would take up to 10 months, so the government plans to offer smallholders loans and new piglets to help rebuild.

But farmers said they had lost faith in the government and doubted pig farming could still yield a livelihood, at least until a vaccine is found.

Jamnian Iangjiam, 62, said she gave up pig farming after two attempts to restart with new piglets saw them get sick too.

“I’m in debt because I spent my last savings on raising new pigs, and now I have nothing,” said Jamnian, her pig pens empty since May. “I’m done.”

($1=33.22 baht)

(Reporting by Patpicha Tanakasempipat; Editing by Kay Johnson, Gavin Maguire and Clarence Fernandez)

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Thailand Rejects Allegations of African Swine Fever Cover-Up

Mon, 10 Jan 2022 14:23:25 GMT

Thailand on Monday denied accusations it has covered up an outbreak of African swine fever, after a university lab test conducted last month indicated a pet pig had died from the disease.

Thai authorities have for years denied a local outbreak of the disease that has swept through Europe and Asia in recent years and killed hundreds of millions of pigs.

Authorities have previously attributed most farm pig deaths to another viral disease, porcine reproductive and respiratory syndrome (PRRS).

Speculation has grown in recent weeks that an African swine fever outbreak was already decimating Thai pig herds, fueled by a sharp increase in pork prices due to a lower domestic pig supply.

“We have followed every procedure. We couldn’t have covered it up,” Sorravis Thaneto, director-general of Thailand’s Department of Livestock Development, told a news conference.

“If we find the disease, we will announce it according to the procedure.”

Authorities have started collecting blood samples from farm pigs and slaughterhouses in swine-raising provinces to look for the disease, Sorravis said.

The disease is harmless to humans but deadly for pigs.

Outbreaks have been reported in China and among Thailand’s neighbors, including Vietnam https://reut.rs/34G4VBr, where at least 230,000 hogs were culled last year, triple the number in 2020.

Sorravis’s comments came after prominent activist Srisuwan Janya filed a complaint earlier on Monday at Thailand’s anti-corruption office, accusing him and two ministers of concealing an African swine fever outbreak.

Thailand’s Kasetsart University said days ago that its laboratory had last month found the disease in a dead pet pig , the first such report in Thailand.

A consortium of deans from 14 veterinary institutions including Kasetsart University said they had sent a letter to Sorravis in early December informing him of the discovery.

Sorravis, however, said he had never seen the letter, but would look for it.

Authorities last week said they anticipated a lower pig supply this year and suspended exports of live pigs starting on Thursday until April 5.

(Reporting by Panarat Thepgumpanat; Writing by Patpicha Tanakasempipat; Editing by Martin Petty)

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Thailand to Curb Exports of Live Pigs for Three Months for Supply Security

Wed, 05 Jan 2022 13:42:51 GMT

Thailand on Wednesday said it would ban exports of live pigs for three months to shore up domestic supplies.

The move to suspend exports, from Thursday until April 5, came after authorities forecast a shortage of pigs for domestic consumption in 2022 as well as further price rises, said commerce minister Jurin Laksanawisit.

Farmgate prices of pigs in Thailand rose over 30% from 80 baht ($2.41) per kilo in January last year to about 105 baht ($3.16) per kilo at the start of 2022, data from the Swine Raisers Association of Thailand showed.

Thailand is expected to have just 13 million pigs this year, fewer than 19 million it usually produces, said Jurin. The country usually consumes about 18 million pigs per year and exports the rest, he said.

($1 = 33.1800 baht)

(Reporting by Panarat Thepgumpanat and Chayut Setboonsarng, writing by Patpicha Tanakasempipat; Editing by Sanjeev Miglani)

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NPPC Testifies at Hearing on Thailand’s Trade Tactics

Wed, 11 Nov 2020 05:09:04 GMT

At a U.S. Trade Representative hearing on Tuesday this week, the National Pork Producers Council called for Thailand’s preferential access to the U.S. market to be revoked or reduced if it does not end its unwarranted ban on U.S. pork.

Thailand is a top beneficiary of the U.S. Generalized System of Preferences (GSP) program, which gives duty-free treatment to certain goods entering the United States. The program allows for removal of a country’s benefits if it fails to provide the United States “equitable and reasonable access” to its market.

“Thailand takes full advantage of special U.S. trade benefits, contributing significantly to its large trade surplus with the United States,” testified Maria Zieba, NPPC’s director of international affairs. “It does so while imposing a completely unjustified virtual ban on imports of U.S. pork. President Trump has called for reciprocity in our trading relationship with other countries, but there is no reciprocity at all in our trading relationship with Thailand when it comes to pork.”

Thailand bans pork produced with ractopamine, a feed ingredient approved for use after numerous scientific assessments by world health organizations declared it safe. Thailand also does not import uncooked pork and pork offal from the United States, even though it imports these products from other international supplies. Other obstacles include excessive import permit fees and high tariffs on agricultural products.

U.S. pork producers currently face retaliatory tariffs in key export markets, such as China and Mexico, at a time of peak production levels. It’s critical that new export markets are opened for U.S. pork and other agriculture sectors.

“The United States ships safe, wholesome and competitively priced pork to more than 100 countries around the world,” said Zieba. “There is no legitimate reason for Thailand to maintain its de facto ban on U.S. pork.”

Following an NPPC petition, USTR in May agreed to review Thailand’s eligibility for the U.S. GSP program. A letter signed by more than 40 members of the House of Representatives was also sent to Thailand’s ambassador to the United States, calling for the removal of restrictions on imports of U.S. farm products, including pork.

A briefing detailing NPPC’s position on Thailand’s GSP benefits is available here .