WTO Talks On Doha Agreement Stall Again
The National Pork Producers Council is deeply disappointed by yesterday’s breakdown of World Trade Organization trade talks in Geneva, Switzerland.
The so-called Doha Round negotiations broke down over an impasse between the United States and India over the use of an agricultural special safeguard for developing countries. NPPC supported the U.S. administration’s opposition to the proposed safeguard, which would have led to import duties in excess of those agreed to in the last WTO trade round and which would have threatened the strong growth in exports that U.S. pork producers have enjoyed in recent years.
NPPC remains hopeful that the Doha Round negotiations, which have been going on for more than seven years, can be quickly resumed. For NPPC, a successful Doha Round agreement would include improved market access for U.S. pork in developed and developing countries, complete elimination of the European Union’s trade-distorting export subsidies for pork and other products and deep cuts in EU domestic support to European farmers and cuts in tariffs on pork. The average global tariff on pork is a staggering 77 percent.
NPPC and the Bush administration have put particular focus on improving market access in two top priority markets, the European Union and Japan, but also are giving considerable attention to improved market access in fast growing Asian markets such as China, Taiwan and the Philippines.
“As unsubsidized producers who are heavily dependent on exports, we have held high hopes for the Doha Round negotiations,” said NPPC President Bryan Black, a producer from Canal Winchester, Ohio. “Obtaining a reduction in import duties is vital to our economic interests, and we have always viewed the Doha Round as a unique opportunity to get that done.
“We also were keenly interested in seeing an end to European Union export subsidies for pork,” Black added. “And, of course, more market access for our product is absolutely critical.”
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USDA Rejects Release Of CRP Acres For Needed Crops
Pork Industry Disappointed, Braces For Corn Shortages And More Price Increases
Stating that it will have adverse consequences for the U.S. pork industry, the National Pork Producers Council expressed extreme disappointment over the U.S. Department of Agriculture’s decision today not to release land from the Conservation Reserve Program (CRP) to address the need for more acres in crop production to meet the growing demands for food, feed and fuel.
Pork producers have lost an average of $20 per hog since the start of this year because of lower feed supplies – and higher prices – driven by the ethanol industry’s demand for corn, which has grown by 1 billion bushels over last year. Ethanol production is predicted to use about one-third of the U.S. corn crop in 2008, up from 22 percent last year, and the demand is expected to grow by as much as 1.4 billion to 1.9 billion bushels in 2009.
“We are cutting back our swine herd and production by as much as 10 percent over the next several months, and even then we will need more acres and more corn in 2009 to meet the demands of ethanol producers and other users and to feed this smaller herd,” said NPPC President Bryan Black, a pork producer from Canal Winchester, Ohio. “Without these CRP acres, which can be responsibly farmed using today’s modern techniques to prevent soil erosion and protect the environment, we will have no ability to grow our industry to respond to worldwide demand. Pork producers are deeply disappointed by USDA’s short-sighted decision.”
According to NPPC, an additional 5 million to 7 million corn acres will be needed in 2009 to meet the ethanol industry’s demands and to keep the U.S. pork industry from contracting even more than the 10 percent predicted by many over the next several months.
“That 5 to 7 million acres will allow us just to keep our heads above water going into 2010,” Black said, “but that only works if we have strong corn yields in 2009. Bad weather next year, without additional CRP acres in production, will again mean producers going out of business and even further consolidation in the pork industry.
“We are extremely disappointed that USDA is willing to take this kind of risk with pork producers’ livelihoods and not work to find a way to bring enough of the right CRP acres back into production in the right way to bring some relief to all corn users,” added Black.
Created in 1985, the CRP is a land reserve program that gives farmers an annual rental payment to take acres out of crop production and use them for conservation purposes for 10 years. There are approximately 34 million crop acres in the program today.
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Drug-Review Law Favorable To Pork Industry
The National Pork Producers Council today commends the House Energy and Commerce Committee for approving the clean reauthorization of an animal-drug review law and a new generic animal-drug review statute.
The Animal Drug User Fee Act (ADUFA), first enacted in 2003, allows FDA to collect fees from the animal health industry for the review and approval of animal health products. The fees supplement the agency’s annual congressionally-approved appropriations and have enabled FDA to dramatically reduce its review time for new animal drugs, bringing medications to the market more quickly while maintaining high standards for safety and effectiveness. The Animal Generic Drug User Fee Act (AGDUFA) would do the same for generic animal drugs. The law is expected to generate $98 million in user fees over the next five years; AGDUFA is estimated to bring in $27 million.
NPPC applauds the leadership of Energy and Commerce Committee Chairman Dingell, D-Mich., Ranking Member Barton, R-Texas, and Subcommittee on Health Chairman Pallone, D-N.J., and Ranking Member Deal, R-Ga., for working with pork producers and the veterinary community to take up the measure before it expires on Sept. 30.
Pork producers have always supported science-based efforts to protect public health. Today’s bill included enhanced animal-health company reporting requirements to further promote public health. These additional requirements do not limit producer access to important animal health products.
NPPC urges swift action by the House and Senate to reauthorize ADUFA and approve AGDUFA before the August recess.
Since ADUFA was signed into law in 2003, four new swine health products have come on the market, helping producers fight the increasing challenges that swine respiratory diseases have created for the industry. Additionally, last year alone, veterinarians and pet owners received nine new products to help pets live longer, healthier lives.
“Passing ADUFA favorably through the House Energy and Commerce Committee is a win for pork producers. I urge Congress to quickly approve both ADUFA and AGDUFA without additional amendments that would make it more difficult to keep animals healthy and maintain a safe food supply,” said NPPC President Bryan Black, a pork producer from Canal Winchester, Ohio.
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Pork Producers Want ‘Clean’ Drug-Review Law
The National Pork Producers Council today urges Congress to reauthorize an animal-drug review law, to approve a new generic animal-drug review statute and to pass both measures without amendments that would make it more difficult to keep animals healthy.
The Animal Drug User Fee Act (ADUFA), first enacted in 2003, allows FDA to collect fees from the animal health industry for the review and approval of animal health products. The fees supplement the agency’s annual congressionally-approved appropriations and have enabled FDA to dramatically reduce its review time for new animal drugs, bringing medications to the market more quickly while maintaining high standards for safety and effectiveness. The Animal Generic Drug User Fee Act (AGDUFA) would do the same for generic animal drugs.
Congressional debate about the ADUFA reauthorization has included the issue of antibiotic resistance and the possibility that antibiotics used in livestock are contributing to antibiotic resistance in people. Some lawmakers have indicated support for adding language to the reauthorization bill that would ban the use in livestock of certain antibiotics.
But the American Veterinary Medical Association recently testified that risk assessment is the proper basis for making policy decisions about antibiotic use in animal agriculture. Indeed, many quantitative risk assessments have been done on antibiotic products used to keep animals healthy, all showing extremely low levels of risk to human health.
Since ADUFA was signed into law, four new swine health products have come on the market, helping producers fight the increasing challenges that swine respiratory diseases have created for the industry. Additionally, last year alone, veterinarians and pet owners received nine new products to help pets live longer, healthier lives.
“ADUFA ensures that animal health companies are able to provide in a timely manner products to treat and control the new diseases that our animals will face,” said NPPC President Bryan Black, a pork producer from Canal Winchester, Ohio. “It’s a critical tool needed by the pork industry and veterinarians to maintain animal health and to provide safe, wholesome and nutritious pork.
“NPPC will be very aggressive in lobbying Congress for a quick, clean reauthorization of this important law,” added Black. “ADUFA is a top priority for the U.S. pork industry.”
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