As Coronavirus Hobbles Meat Processors, Tough Decisions Loom For Beef, Chicken, Pork Exports

U.S. meat processors’ inability to completely safeguard their workplaces from the Coronavirus pandemic will not only have an impact here, in the United States, but around the world.

Depending on how severe the impact gets — more than 30 meat processing plants in South Dakota, Colorado, Iowa and Georgia have reported Coronavirus cases at just three of the nation’s largest producers — the choice could be as simple as this:

Does the United States:

(a) restrict exports of chicken, beef and pork equal to or greater than the level of the output reduction?

(b) let market forces have their way?

(c) ask Americans to reduce their consumption, cutting into their treasured chicken nuggets, burgers and bacon?

Each choice is fraught with risk.

The first choice could spark protectionist measures — restrictions — from other countries, as witnessed with medical supplies during the pandemic. If you are not aware of the Smoot-Hawley Act of 1930 and its impact on the Great Depression, now would be a good time to read up on it. In addition, on a humanitarian level, restricting U.S. exports of beef, chicken or pork would not play well, either. It wouldn’t even work well on a political level, as many of the United States’ best markets are our closest allies.

The second option is always the purest but rarely achievable. Especially when the pain and suffering come quickly and, to date, there is little pushback against decisions by the Congress, the White House or the Federal Reserve to open their wallets wide and often. Has the word “trillion” lost its ability to shock you?

The third option might scare the farm industry. It is aware that the U.S. soybean industry will now have to fight to regain market share lost to Brazil during the U.S.-China trade war. Brazil gained market share because China retaliated against U.S. tariffs, virtually eliminating U.S. exports to a market that once purchased a majority of its soybeans. Buyers of U.S. meat can, and will, look elsewhere.

Against these difficult options, it is important to know that the United States is a net exporter of chicken, beef and pork — and that it’s a big business.

Exports of the three totaled about $16 billion last year. At the moment, beef and pork production is already down an estimated 25%, according to estimates.

Our beef exports, both fresh and frozen, approached $7 billion, more than 50% greater than our beef imports.

Imports of chicken and other poultry products, at $237 million, where a fraction of the value of exports, at $3.4 billion.

Pork also was a much bigger export than import, with exports of $5.33 billion and imports of but $1.07 billion — essentially four times as great.

While many of the less populated states in the country have experienced limited impact of the Coronavirus to their residents’ lives, it is apparent from these outbreaks at meat processing plants that there are pockets of industry across the United States, from our largest communities to our smallest, that are part and parcel of its success as a nation.