Ohio Ag Connection - Fed Buying of Pok Helps, So Don't Block Foreign Producers

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Fed Buying of Pok Helps, So Don't Block Foreign Producers
By: Scott Schroeder, Ohio Pork Council - 06/27/2019

In any international or geopolitical struggle, those most aggrieved are victims of circumstances beyond their control, and the ongoing trade dispute is no exception. The U.S. pork industry has been one of the most adversely affected sectors, receiving a one-two punch in the form of a 50% punitive tariff from China and, until recently, a 20% punitive tariff from Mexico. According to Iowa State University Economist Dermot Hayes, the combined retaliation has cost the industry $2.5 billion - causing more harm to the U.S. pork industry than virtually any other commodity. This is not lost on our President, who recently thanked "patriot farmers" for bearing the brunt of China's trade retaliation.

As a consumer and Ohio pig farmer, I have seen how this struggle has affected Ohio's pork producers. In 2018, financial analysts forecasted profits for hog farmers. However, those forecasts were shattered by trade retaliation penalties and other misfortunes. Similar to many industries, these international trade conflicts hit home as we produce a surplus supply of products meant to be exported. Unlike other industries, however, pork producers are unable to quickly shift production to adapt to fluctuation in international demand -- leaving us with an increased supply of pork.

Fortunately, in 2018, the U.S. Department of Agriculture (USDA) announced a food purchase and distribution program through which the government buys surplus pork and other agricultural products for food-assistance programs like school lunches, the military and food banks. The program provides safe, nutritious, American-grown products to those who need it -- making it a win-win situation for both farmers and consumers. This year, Ohio was able to gain access to over 800,000 pounds of pork through this very program, benefitting families in need across Ohio.

Since the start of this program, over 156,000 pounds of pork have been delivered to Mid-Ohio Food Bank to benefit members of the Columbus area. Through this program, thousands of meals have been provided to your community members -- the ultimate silver lining in this trade struggle. Pork producers like me understand the importance of giving back to the communities that we live and work in, which is why our industry has donated an additional 82,000 pounds of fresh, nutritious pork to local food banks over the last three years. Despite the darkness of this struggle, our ability to provide so many families with quality food makes the challenges we face less daunting.

While there are numerous benefits of this program to Ohio families and pig farmers like myself, some individuals in Washington D.C. have raised questions about the involvement of foreign-owned pork processing companies in the program. However, the involvement of these companies in government purchase programs is vitally important to the United State's pork industry. These processing companies, regardless of ownership, employ thousands of American citizens, purchase millions of U.S. hogs and are valuable partners in our supply chain. The food purchase and distribution program, coupled with affordable pork, helps provide to a vast audience of those in need.

To challenge the government purchase of pork from these companies, despite the advantages to the industry and our society, only increases the number of victims affected by these international struggles. If foreign-owned companies are not permitted to participate in government purchase programs, the programs will likely be unsuccessful and the surplus pork supply in Ohio will go unused. As a society, we should embrace the opportunity to help our neighbors, rather than leverage this situation for political gain.

As a pork producer, I encourage and support the government's purchase of pork from processing companies -- regardless of ownership -- to provide affordable pork to those who need it most. Although inexpensive pork affects the profitability of my farm, I believe the opportunity to come together for struggling community members helps make up for the struggles I am faced with.

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