News from Pro-Farmer

Chinese Demand Gaining Ground — And Not Just For U.S. Pork. 

China recently struck a deal to import pork and pork products from Spain and just last week reached agreement on regs to import pork and pork products from Germany. With Chinese food prices rising more that 6% monthly, and pork prices leading the way (wholesale prices up seven straight weeks) the government is looking to increase pork supplies. The U.S. is benefiting tremendously from increased demand from China, too. Through September 2007, U.S. pork exports to China are up 82% from the same period in 2006 and have already surpassed total 2006 exports to China by 27%! And don’t forget about Hong Kong imports of U.S. pork. (Some of which may be trans-shipped to mainland China.) Hong Kong imports are up 114% from year-ago. Obviously, Asian demand is helping to ease the burden of bulging supplies! 

EU Considers Subsidies on Pork Exports! 

The European Union (EU) is considering pork export subsidies as the bloc tries to help pork producers hurt by rising feed costs and the weak U.S. dollar. TURNING POINT: If EU ag ministers decide to subsidize pork exports, there’s no doubt China would increase EU pork imports. Plain and simple, China is very price sensitive when it comes to imports of any ag commodity and if the EU subsidizes pork, it will undoubtedly undercut the U.S. pork market to secure demand from China. U.S. pork interests will keep a close eye on this issue and will look for a “counter move” from the U.S. federal government if the EU “crosses the line.” PERSPECTIVE: The timing couldn’t be worse for the EU to consider pork export subsidies. The U.S. is fighting funding battles for the new farm bill, the dollar is weak and pork supplies are bulging. If the EU does subsidize pork exports, more lean hog hedges would likely be warranted to cover additional downside price risk. 

U.S. Gains More Access to Data on Chinese Exports

Program to Allow Product-Tracking 

Washington Post Staff Writers 

Ariana Eunjung Cha and Annys Shin

BEIJING, Dec. 12 -- Chinese officials on Tuesday agreed to implement a detailed experimental tracking and data-sharing program for a limited number of foods, drugs, and medical devices bound for the United States. U.S. officials hailed the agreement as a breakthrough, but independent food safety experts said they are skeptical about China's ability to impose such a system on its diffuse farm and chemical industries. 

Under the two agreements signed Tuesday, the United States will be able to track certain food and drug exports from China as part of a broader registration and certification process designed to allay worries about the quality of Chinese products. When crises over specific products erupt, as they did this year over pet food and seafood, Chinese officials have promised to allow U.S. officials access to Chinese food-processing plants and factories quickly. In the event a product is discovered to have an "imminent or significant danger to health," China must notify the United States within 48 hours. 

Chinese Vice Premier Wu Yi's remarks were more pointed. She spoke about the 50 or so China-related bills pending in Congress. Calling them "protectionist," she said both sides must "oppose attempts to politicize trade issues." "I need to be quite candid about this: If these bills are adopted, they will severely undermine U.S. business ties with China," Wu said. 

The nearly two dozen types of goods affected by the two agreements reached Tuesday include many of concern to U.S. consumers, such as pet food and farm-raised fish. Drugs and medical devices affected include pacemakers, insulin, human growth hormone, condoms and antibiotics. 

The products covered by the agreements represent a tiny fraction of the estimated $341 billion worth of goods China is expected to sell to the United States this year. Senior HHS officials said more products can be added later by mutual agreement, but the United States first needs to gain confidence in China's oversight capabilities. China is also supposed to create a secure electronic system to track shipments so problems can be traced to their point of origin. The programs would be subject to audits by U.S. authorities. 

In China, the agreements were seen as a major concession by the government, which for months refused to acknowledge that any problem existed. Jin Canrong, vice dean of international studies at Renmin University in Beijing, said the agreement represents "a very big response to U.S. demands." For China, which has in the past declined to reveal information that might be considered letting outsiders to meddle in its internal affairs, "sharing data is a big offer to the United States." oalp.okstate.edu/files/china_korea.../China%20Current%20Events.doc‎