Future U.S. trade policies remain uncertain under a Donald Trump presidency, but Tyson Foods President and CEO Tom Hayes said the company is doing its best to prepare for any policy changes.
While Tyson Foods is involved in chicken, turkey, beef and pork processing, Hayes specifically addressed trade issues while discussing the performance of Tyson Foods’ pork segment during the company’s quarterly earnings call on February 6.
Hayes noted that the U.S. Department of Agriculture has forcast that demand for pork will remain strong in export markets, particularly in China.
“While Tyson Foods doesn't export a significant amount of pork to China, other U.S. packers do, which creates domestic disappearance. We're certainly aware of the additional capacity coming online, but there appears to be enough hog production to support these plants, and continuing export demand should absorb the additional supply,” said Hayes.
“At this point, we don't know how any changes in the U.S. trade policy might affect exports of pork or other proteins, but in general, trade restrictions that impact export demand also can affect domestic supply. We're planning for different scenarios and will be prepared to adapt if there's any change in policy.”
Early in his presidency, Trump kept his campaign promise to withdraw the United States from the Trans-Pacific Partnership trade deal. Plans have also been discussed concerning revising the North American Free Trade Agreement (NAFTA).
The possibility of tariffs on China that may affect U.S. industries was also mentioned by Scott Shearer, of the bipartisan government affairs consulting firm Bockorny Group, during a presentation at the 2017 International Production & Processing Expo (IPPE) in Atlanta.
