If companies manage to keep their workers healthy and plants operating, there should be plenty of supply to satisfy domestic and foreign markets, according to industry officials.
“I really feel like the industry is well positioned to serve all of its customers both here and abroad,” said Joe Schuele, a spokesman for the industry trade group U.S. Meat Export Federation.
Meat exports, particularly pork exports to China, grew significantly throughout the first three months of the year. This was partly due to several new trade agreements that were completed before the coronavirus outbreak led to the temporary closure of dozens of U.S. meatpacking plants in April and May and to increased absenteeism at many plants that reduced their output.
Part of the reason why exports have continued to be so strong this spring is that much of the meat headed overseas was bought up to six months ahead of time — before the virus outbreak took hold in the U.S.
“A lot of these sales were made before COVID-19 hit. China had already made these purchases and then COVID-19 hit. They had actually pre-purchased a lot of this before the plant problems hit,” said Chad Hart, an agricultural economist at Iowa State University.
It’s also worth noting that meat exports to China and other Asian markets include cuts such as pig feet, snouts and internal organs that have little value in the United States. The most popular cuts in the U.S., including bacon and pork chops, largely stay in the domestic market. More than half of the chicken exports to China were chicken feet. And the Meat Export Federation says demand from the export market helps boost meat production in the U.S. because more animals are slaughtered to help meet all the demand.
Iowa Agriculture Secretary Mike Naig said he doesn’t think it makes sense to restrict exports because so much of the meat sold internationally isn’t popular in the U.S.
“I think it’s important to prioritize,” said Naig, whose state leads the nation in pork production. “I think companies should meet the domestic market first and then be free to sell the things that the American consumer doesn’t purchase and the types of things that we don’t normally consume. That’s economically important.”
Meat production in the United States is dominated by a few huge companies — JBS, Smithfield, Tyson Foods and Cargill. Cameron Bruett, a spokesman for JBS, said that Brazilian-owned company has reduced exports to help ensure it can satisfy U.S. demand for its products. Tyson Foods and Cargill didn’t respond to questions about their exports.
Smithfield Foods, which is owned by a Chinese company, said in a statement that it isn't controlled by any government and that the free market determines what products it exports. JBS declined to respond to questions about its foreign ownership. Purdue University agricultural economist Jayson Lusk said it’s not clear what role the foreign owners play in deciding how much meat is exported.
The industry has been dealing with a number of production challenges caused by the coronavirus, and several large plants had to close temporarily because of outbreaks of COVID-19, the disease it causes. At least 30 U.S. meatpacking workers have died of COVID-19 and another 10,000 have been infected or exposed to the virus, according to the United Food and Commercial Workers union, which represents roughly 80% of the country's beef and pork workers and 33% of its poultry workers.
Kansas State agricultural economist Glynn Tonsor said he thinks the industry will get past the shortage concerns within the next several weeks.
“I think it’s important that we note that the U.S. hog industry is large enough to sufficiently supply our domestic market and export. We’ve done that for some time. We’ve been growing volumes in both places for some time,” Tonsor said.
Tyson and Smithfield have both been able to reopen huge pork processing plants that were temporarily closed in Iowa and South Dakota, which should help the industry keep up with demand even if some plants aren’t running at full capacity, said David Herring, of the National Pork Producers Council.
“I really don’t think we’ll see a big problem with meat shortages,” said Herring, who raises hogs near Lillington, North Carolina. “As long as the plants are able to come back up and operate maybe not at 100% but at 80% or 90%, I think we should be good.”
Check out more of the AP’s coronavirus coverage at https://apnews.com/VirusOutbreak and https://apnews.com/UnderstandingtheOutbreak