CHICAGO, March 12 (Reuters) -
Tariffs
make it more complicated for Smithfield Foods ( SFD ), the
biggest U.S. pork processor, to sell all parts of a pig, CEO
Shane Smith said on Wednesday.
U.S. President Donald Trump roiled agricultural markets by
announcing tariffs last week on goods from China, Mexico and
Canada, the top importers of American farm products. Two days
after the announcement, Trump suspended most of the tariffs on
Canada and Mexico for a month.
China, the world's biggest pork consumer, retaliated with
hikes to import levies covering $21 billion worth of American
agricultural and food products.
Smithfield does not export material amounts of meat to
China, but ships offal products, such as pig stomachs, hearts
and heads that U.S. consumers generally do not eat, Smith said.
The company believes China will still be the best market for
offal with increased tariffs, he said.
"In fresh pork, it's really about finding a home for every
piece of that," Smith said on a livestream of a Bank of America
event.
"With the tariffs coming in, it makes it more complicated as
you look around the globe and see how things are moving and how
exchange rates are moving."
Tariffs can impact U.S. pork producers because they import
baby piglets from Canada.
Canada last week suspended imports from Smithfield's
processing facility in Tar Heel, North Carolina, the biggest
U.S. pork plant, due to an issue regarding offal, according to
the company.
The halt was not related to tariffs, and Smithfield is
working to resolve the issue, Smith said.
"There was a customer pickup and there was a problem when it
reached the border," he said. "We're bringing that product
back."
Smithfield, which has about 34,000 U.S. employees,
previously warned it could suffer worker shortages or higher
employment costs if the Trump administration enacts new
immigration laws.
"We're paying close attention to all of the things that are
coming out," Smith said. "We personally haven't seen a big
impact, where we think maybe some others have."