NCBA's Kent Bacus Condemns the Folly of Trade Wars- Says American Consumers will Ultimately PayTue, 26 Jun 2018 10:00:03 CDT
It was right at a year ago today when the US cattle industry was celebrating US beef being sold into China legally for the first time since the Cow That Stole Christmas and BSE. Kent Bacus with the National Cattlemen’s Beef Association was there representing the US cattle industry in Beijing for that celebration. A year later, he says we are now looking at a market that is very uncertain because of the 25 percent tariff that China will levy on imported US beef, effective July 6th, due to the tariff war unfolding between the Chinese and the Trump Administration. This tariff, Bacus says, is actually on top of other levies that the Chinese government had already put in place that the industry has managed to live with all along. This additional 25 percent though just makes the economic burden too much to bear.
“Businesses in China are saying, ‘Look - we don’t want to pay that tariff,’ and so they’re cancelling orders,” Bacus said. “And, it’s not just beef being impacted by this.”
He explained that pork, too, is feeling the pressure of tariffs. That’s bad news for beef producers, Bacus says, as pork is one of beef’s main competitors in all major export markets and domestically as well. When one feels pressure from the market and the situation becomes difficult in regard to moving product, Bacus explains that pressure is transitively felt by the other when displaced product starts to move into already saturated markets and increases competition throughout.
“So, there’s a lot of uncertainty out there and the we’re not alone in the meat sector. The rest of ag is pretty nervous about this and really the US economy in general,” he remarked, attempting to explain the folly that a trade war can create. “Ultimately, we need to make some consumers have access to the products they want. Because, really at the end of the day, it’s the American consumer that’s going to have to pay the price for all these tariffs.”
Listen to Bacus speak with Radio Oklahoma Ag Network Farm Director Ron Hays about the folly of trade wars and the general feelings of the ag industry regarding the Chinese market currently, on today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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