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Pork and Swine: Industry and Trade Summary

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Pork and Swine: Industry and Trade Summary Pork and Swine Industry & Trade Summary Office of Industries Publication ITS-11 October 2014 Control No. 2014002 UNITED STATES INTERNATIONAL TRADE COMMISSION Robert B. Koopman Director, Office of Operations Karen Laney Director, Office of Industries This report was prepared principally by: John Giamalva, Office of Industries Livestock, Dairy, and Fishery Products [email protected] With supporting assistance from: Phyllis Boone, Office of Industries Peg Hausman and David Lundy, Office of Analysis and Research Services Carolyn Holmes and Darlene Smith, Statistical Support Division, Office of Investigations Sonya Wilson, Help Desk and Customer Service Division, Office of the Chief Information Officer Under the direction of: Jonathan Coleman, Chief Agriculture and Fisheries Division Address all communications to: Secretary to the Commission United States International Trade Commission Washington, DC 20436 www.usitc.gov Preface The United States International Trade Commission (USITC) initiated its current Industry and Trade Summary series of reports to provide information on the rapidly evolving trade and competitive situation of the thousands of products imported into and exported from the United States. International supply chains have become more global and competition has increased. Each Industry and Trade Summary addresses a different commodity/industry and contains information on trends in consumption, production, and trade, as well as an analysis of factors affecting industry trends and competitiveness in domestic and foreign markets. This report on swine and pork primarily covers the period 2008 through 2013. Papers in this series reflect ongoing research by USITC international trade analysts. The work does not represent the views of the USITC or any of its individual Commissioners. This paper should be cited as the work of the author only, and not as an official Commission document. Suggested reference citation: Giamalva, John. Pork. Industry and Trade Summary. Publication ITS-011. Washington, DC: U.S. International Trade Commission, September 2014. 1 2 Table of Contents Preface ............................................................................................................................................ 1 Abbreviations and Acronyms .......................................................................................................... 7 Glossary ........................................................................................................................................... 9 Key Points ...................................................................................................................................... 11 Introduction .................................................................................................................................. 13 U.S. Industry .................................................................................................................................. 15 Production Trends ..................................................................................................................... 15 Geographic Distribution ............................................................................................................ 18 Swine Production Capacity ....................................................................................................... 19 Number and Concentration of Firms ........................................................................................ 20 Swine Production .................................................................................................................. 20 Pork Processing ..................................................................................................................... 21 Presence of Multinational Firms ............................................................................................... 23 Foreign Investment in the U.S. Industry ................................................................................... 23 Vertical and Horizontal Integration .......................................................................................... 24 Employment, Earnings, and Productivity.................................................................................. 25 Swine Production .................................................................................................................. 25 Pork Processing ..................................................................................................................... 26 Swine Production Costs ............................................................................................................ 27 Feed Efficiency ...................................................................................................................... 29 Ractopamine ......................................................................................................................... 30 Dried Distiller’s Grains .......................................................................................................... 31 Other Elements of Cost ......................................................................................................... 32 Swine Research ......................................................................................................................... 32 Swine Marketing and Distribution ............................................................................................ 34 Marketing Methods and Distribution Channels ................................................................... 34 Price Determination .............................................................................................................. 34 U.S. Market ................................................................................................................................... 35 U.S. Consumption ..................................................................................................................... 35 3 Consumption Trends ............................................................................................................. 35 Factors Affecting U.S. Consumption ..................................................................................... 36 Import Penetration Levels ........................................................................................................ 38 The Effect of Exports on Value .................................................................................................. 38 U.S. Trade ...................................................................................................................................... 39 Overview ................................................................................................................................... 39 U.S. Exports ............................................................................................................................... 41 Swine ..................................................................................................................................... 41 Pork Export Overview ........................................................................................................... 41 Tariffs .................................................................................................................................... 43 Sanitary Regulations ............................................................................................................. 45 Export Market Profiles .......................................................................................................... 47 U.S. Imports .............................................................................................................................. 54 Swine ..................................................................................................................................... 54 Pork ....................................................................................................................................... 55 Tariffs .................................................................................................................................... 57 Mandatory Country-of-Origin Labeling ................................................................................ 57 Foreign Industry Profiles ............................................................................................................... 59 Overview ................................................................................................................................... 59 Major Producers ....................................................................................................................... 60 China ..................................................................................................................................... 60 European Union .................................................................................................................... 62 Brazil ...................................................................................................................................... 63 Canada .................................................................................................................................. 65 Appendix A Statistical Tables ................................................................................................... 77 Boxes Box 1 Industry definitions ...........................................................................................................
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