Capital Update – For the Week Ending October 21, 2022

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Mexican President Issues Decree to Fight Food Prices

What happened? On Oct. 19, Mexican President, Andrés Manuel López Obrador published a decree titled the Package Against Inflation and Famine with the objective of reducing the average price of the basic basket of 24 food products by 8%. It creates a universal import license that companies will administer and suspends import tariffs on certain food imports.

Why is this important? Over the past year, Mexico has been the U.S. pork industry’s number one value and volume export market. The decree establishes a “Single Universal License,” which makes companies responsible for verifying that products meet sanitary and phytosanitary standards, a function normally overseen by the Mexico government. The decree will be in force from October 20, 2022 to February 28, 2023 and may be extended until December 31, 2023.

What’s next? The United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) and the Food Safety and Inspection Service (FSIS) have not issued statements regarding their role under this new mechanism, nor have they indicated how Mexico’s decree will impact imports from Mexico. This all comes on the heels of the recent departure of Mexico’s trade negotiators from their posts.

Our take: NPPC has been working with U.S. and Mexican government officials to ensure safe, wholesome U.S. pork products continue to flow into our largest value and volume export market.

Dr. Anna Forseth Spoke at Urner Barry Global Protein Summit in Chicago

What happened? Dr. Anna Forseth, NPPC Director of Animal Health, spoke at the Urner Barry Global Protein Summit in Chicago, Illinois.

What topic was of interest? California Proposition 12 spurred conversation during this three-day conference. Discussions ranged from origins and specifics of the rule to supply concerns, costs, compliance, enforcement, trade issues and consumer trends.

Key takeaways: “This initiative would have a dramatic effect on producers around the country who are supplying the California market,” said Dr. Forseth. After discussions around consumer demand for products marketed under regulations similar to California Proposition 12, Dr. Forseth reminded the audience that “NPPC’s position is one of supply and demand, not to regulate how producers raise animals through initiatives. Let consumers guide the industry through their purchases and their choices.”

Fall Pork Alliance Meeting

What happened? This week, NPPC’s Pork Alliance partners and members discussed and advocated on current industry issues while in Washington, D.C. for its annual meeting. The Pork Alliance is a program for allied industry companies to join NPPC and help us fight for reasonable public policy, defend our freedom to operate and expand access to global markets.

NPPC is advocating for:

-The Biden administration to join the 11-nation Comprehensive and Progressive Trans-Pacific Partnership and to negotiate an Indo-Pacific Economic Framework trade deal that addresses market access for and non-tariff barriers to U.S. products.

-Expand the H-2A visa program to year-round agricultural workers, including packing plant employees. Currently, the visa only allows for temporary, seasonal farm laborers.

-Continued funding in the next farm bill for the National Annual Vaccine and Veterinary Countermeasures Bank, the National Animal Health Laboratory Network, the National Animal Disease Preparedness and Response Program and the National Veterinary Stockpile.

Celebrating Porktober

As October is National Pork Month, what better time than now to dive into your favorite pork products and learn about the significant economic contributions our industry has on local communities and those across the globe.

What’s Ahead:

Communications Internship

Are you, or someone you know, interested in communications, public policy and the pork industry? If so, check out NPPC’s communications internship opportunities for hands-on experience with an organization that serves as the global voice for the U.S. pork industry. Applications for spring and summer 2023 internships will be accepted through Oct. 28.

Neil Dierks Scholarship

Applications are now being accepted for the 2023 Neil Dierks Scholarship, which is sponsored by the National Pork Industry Foundation (NPIF) and is managed and administered by NPPC. One $5,000 scholarship will be awarded to a student seeking a graduate degree in a field related to the pork industry at a land grant university. Submissions are due by Jan. 3, 2023.

Lois Britt Memorial Pork Industry Scholarship

Applications are now being accepted for the 2023 Lois Britt Memorial Pork Industry Scholarship, which is sponsored by CME Group and NPIF and managed and administered by NPPC. Ten $2,500 scholarships will be awarded to undergraduate students who plan to pursue a career in the pork industry and exhibit characteristics representative of future pork industry leaders. All entries must be submitted by Jan. 3, 2023 to be considered.