USDA Remains Firm on Chinese Ag Purchases Despite Coronavirus, Trade Groups Concerned Over Exports
The U.S. trade representative has had “no conversations” with China about possible delays in agricultural purchase commitments due to the coronavirus pandemic, according to coronavirus guidance issued by the U.S. Department of Agriculture. The guidance, which includes a series of frequently asked questions to address virus-related concerns for traders and others who have been impacted, said no delays under the U.S-China phase one deal are expected. “We expect that the Chinese will meet their commitments under the agreement,” the USDA said.
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Although Agriculture Secretary Sonny Perdue recently said the agency expects China to begin fulfilling the purchases by the end of the summer (see 2003040029), the president’s national security adviser said the purchases could be impacted during the first year of the deal (see 2002120043). The USDA did not comment.
The USDA also stressed that there is “no evidence to suggest” food produced and exported from the U.S. can transmit COVID-19. It also said there is no evidence that “food or food packaging” can be “associated” with the transmission of the virus. However, the agency said the virus can possibly “survive on surfaces or objects,” and urged people handling food and other produce to follow food safety steps.
The National Milk Producers Federation said it is ready to “assist” members in addressing coronavirus challenges, including “possible damages to domestic and world markets” and other supply chain disruptions, according to a March 13 press release. “[T]he potential ramifications for dairy are wide-ranging,” NMPF President and CEO Jim Mulhern said in a statement. “We will devote our resources to the best of our ability to helping dairy farmers and cooperatives respond to whatever challenges they may face.”
In a March 10 letter to U.S. government officials, the National Pork Producers Council said it is suffering from a “severe labor shortage” due to the coronavirus outbreak, which could significantly impact U.S. pork exports. The NPPC said pork exports can “put a huge dent in the U.S./China trade imbalance” but the labor shortages are threatening the goal. “Because our product is in such demand and we are so competitive, U.S. pork is an engine of economic growth in many regions of the nation,” the letter said. “Unfortunately, the severe labor shortage we face threatens the financial livelihoods of thousands of hog farmers, their employees and their communities.”
The NPPC said analysts have predicted a “capacity shortfall” to begin in September, but that the coronavirus could cause that to start “much” sooner. “The specter of market-ready hogs with nowhere to go is a nightmare for every pork producer in the nation,” the letter said. “It would result in severe economic fallout in rural communities and a major animal welfare challenge.” The government should grant “expedited worker visas” and develop “support plans” to help pork exporters, the letter said. The Trump administration expected the U.S.-China phase one deal to end a recent string of aid packages to farmers (see 2001210031), but Trump and Perdue recently said another package may be available.