Canada has resumed imports from the largest U.S. pork-processing plant, a Smithfield Foods facility in Tar Heel, North Carolina, after a temporary suspension of about a week, the company announced on Friday.
The temporary halt restricted the market for American pork products while U.S. farmers are concerned about the potential impact of trade disputes affecting agricultural exports to major buyers like Mexico, Canada, and China.
Smithfield stated that the recent suspension was due to issues with certain offal shipments at the border and not related to tariffs. Consequently, shares showed a slight increase on Friday.
According to company spokesperson Jim Monroe, "Canada temporarily suspended imports from this facility following an issue with a limited number of certain offal shipments."
The suspension lasted from March 6 to March 12, and pork products from the facility manufactured after March 12 are once again allowed for export to Canada, as per information on a U.S. Department of Agriculture website.
Canada ranked as the fifth-largest export market for U.S. pork last year, with shipments worth around $850 million, based on USDA data.
Trade uncertainties continue to loom over U.S. pork producers due to ongoing trade disputes possibly affecting demand.
The USDA reported that U.S. pork export sales dropped to 20,262 metric tons in the week ending March 6, hitting the lowest point of the year, down 52% from the previous week.
Hundreds of U.S. meat plants were given approval to export to China under a 2020 trade agreement with President Donald Trump.
Dan Norcini, an independent livestock trader, noted, "The hog market has been rattled by tariff concerns and disruptions to U.S. pork exports."
Positive news regarding U.S. pork exports, even regarding offal, helps alleviate some of the pessimism, leading to the rise of lean hog futures at the Chicago Mercantile Exchange.