17:02 UK, 8th March 2010, by Agrimoney.com
China 'may soon reopen' to US pork

China may soon reopen to US pork, exporters believe, a concession which would represent a second breakthrough for America's recovering meat sector.

Beijing officials are poised to meet a US Department of Agriculture delegation to discuss the smallprint of resuming trade, which has been banned since April over fears of the spread of H1N1 virus, or so-called "swine flu".

"There's a delegation of USDA folks that will be in China and we're expecting this [clearance] to come very soon," Phil Seng, chief executive of the US Meat Export Federation, said.

"We're looking at the USDA being there in the next week."

'Excellent news' 

The comments follow Russia's agreement on Friday to reopen to US pork imports, which were again blocked by H1N1 concerns, although supplies will have to come from plants which meet new criteria on antibiotic residues.

"Reopening the market with Russia is excellent news for American hog producers," Tom Vilsack, US agriculture secretary, said.

"Exports are extremely important to the US pork industry."

Russia has historically been the fourth-biggest US pork export market, with China, including Hong Kong, ranked second equal with Mexico, according to the US Meat Export Federation.

Market reaction 

Hopes for a deal have helped maintain a revival in pork belly prices, which have more than doubled in Chicago since August, including a rise of more than 15% over the last month.

Prices of lean hogs have also staged a revival, adding 9% in the last month amid growing hopes for both domestic and export demand.

However, prices eased on Monday, with lean hogs for May down 0.3% at 78.70 cents a pound and May pork bellies down 0.8% at 92.30 cents a pound.



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