World's biggest pork plant in US unable to ship to Mexico: USDA website

[CHICAGO] The world's biggest pork plant - a Smithfield Foods Inc facility in North Carolina - has been ineligible to export to Mexico since last Wednesday, according to a US Department of Agriculture website.

Mexico has historically been the biggest export market for US pork by volume, although it was surpassed last year by China.

A major buyer of hams, Mexico purchased about 708,00 metric tons of US pork in 2019 worth about US$1.3 billion.

The USDA did not provide a reason on its website for why Smithfield's plant in the town of Tar Heel became ineligible to ship pork to Mexico. An agency spokesperson had no immediate comment.

Smithfield, owned by Hong Kong-listed WH Group, is the world's biggest pork processor and sells meat under its namesake brand, along with Eckrich and Nathan's Famous sausages. A company spokesperson had no immediate comment about the plant in Tar Heel.

Being unable to export to Mexico from the facility "sounds more ominous than it is" for Smithfield, said Steve Meyer, economist for consultancy Partners for Production Agriculture.

The company could ship pork to Mexico from a US facility other than Tar Heel if necessary, he said.

"I don't get real worried about one plant on a multi-plant firm, even though it's still not a good thing," Mr Meyer said.

The Tar Heel plant can slaughter about 34,500 hogs a day, about 7 per cent of total US slaughtering, according to industry estimates.

Mexico's Economy and Agriculture ministries did not immediately respond to requests for comment.

REUTERS