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Growing pork industry understands NAFTA importance

A growing U.S. pork industry knows the NAFTA agreement is important.

Steve Meyer with EMI Analytics says there are signs of optimism for renewing NAFTA.  “It sounds to me like the guys in Washington, you know, think this is maybe a 50-50 or maybe a little better shot of maintaining most of the advantages we had in the past.  Two or three months ago, they wouldn’t have given you anywhere near that kind of probability but there’s been kind of a full-court press by, kind of what’s called the barnyard coalition.”

But, he says U.S. pork producers need exports, and he cites an Iowa State analysis that shows a failure to maintain a NAFTA agreement would be a huge negative impact on the industry.  “If we have to go back to just the normal WTO situation and the Mexicans impose tariffs, then we could lose the entire Mexican market over the next several years.”

Market analyst Bob Brown says 25% of U.S. pork exports are hams to Mexico.

Meyer and Brown made their comments during a National Pork Board conference call Friday after the USDA Hogs and Pigs Report was released.

The USDA report shows the September to November pig crop is more than 33 million head, and up 3.2% over a year ago.  Analysts were only predicting at 2% increase.