Jim Long President – CEO Genesus Inc. firstname.lastname@example.org
Country of Origin Retaliation Amount $1.1 Billion
December 14, 2015Last week the World Trade Organization (WTO) set the retaliation amount that Canada and Mexico can place on American products in response to US Country of Origin Labelling (COOL) law at $1.1 billion.
- The COOL law requires meat (pork) to be labelled with the country where the animal from which it was derived was born raised and harvested.
- The COOL law established a decade ago was a compromise when some law makers (Senators) tried to ban packer ownership of livestock (hogs).
- Four times the WTO has ruled that COOL violates US trade obligations, discriminating against Canada and Mexican animals that are sent to the United States to be fed out and processed.
- The US House of Representatives voted in June to repeal the law. In the Senate the Democratic Senator from Michigan, Debbie Stabenow, now senior democrat on Ag-Committee has not co-operated to repeal the Law. (Suggestion – Michigan Hog Farmers call your Senator)
- We expect Canada and Mexico Governments could rapidly and legally target imports of Pork from USA with Tariffs. Two of the largest markets for US pork. The tariff put on US pork could do several things. Drive down the price of US hogs, Canada will have a price advantage. In Mexico due to the Tariff and and grab market share, less pork will come to Canada from USA
- The idiocy of the COOL legislation has been proven four times in court. The US Congress has recognised and voted to repeal the law. The US Senate needs to do the same, swine producers lead by the NPPC have been against COOL from the beginning. US Swine producers need this legislation repealed before tariffs and lost markets take $10-20 per head off the market price.
- Chicken Industry does not appear to be expanding week upon week for the last while; Chick placement has been mostly lower. No more chicken helps Pork prices.
- This past week we had visitors from Great Britain. In their market breaking even to a small profit. There are no gestation crates. Group Housing really accents the need for a calm sow with good feet and legs. Some of the current genetics are quite challenged to keep sow mortality and involuntary culling low. Also, consumers and retailers looking for better tasting Pork in Great Britain. A significant number of Genesus Purebred Registered Duroc Boars in production now and expanding. Taste & Flavour is becoming a more important buying criteria.
Categorised in: Pork Commentary
This post was written by Genesus