CHINA – The world’s second-largest processor and marketer of all kinds of meat, Tyson Foods, has been suspended from exporting its products processed at beef and pork subsidiary plants located in Logansport, Indiana.
As confirmed by the USDA, the ban officially went into effect on August 29, but it remains unclear the reason behind the suspension.
According to a notice posted on China’s customs website, a select number of pig trotters, or the cut of pork also known as pig feet, failed inspection.
Though only pig trotters were reported to have failed the inspection, China declared a suspension on all meat products from also the Tyson pork and beef processing plants in Indiana.
The suspension is a big blow to Tyson Foods, as it comes at a time when the demand for pork is higher in China due to national festivals where the meat is more frequently consumed, Bloomberg, points out.
In addition, the news company confirms that the cooler weather is expected to lift consumption of China’s favorite meat.
Commenting on the suspension, Tyson said: “We work closely with the U.S. Department of Agriculture’s Food Safety and Inspection Service to ensure that we produce all of our food in full compliance with government safety requirements.”
We’re confident our products are safe and we’re hopeful consultations between the US and Chinese governments will resolve this matter.”
Pan Chenjun, a senior analyst at Rabobank also viewed the suspension as a choke to Tyson, stating that Tyson’s suspension shouldn’t have much impact on the meat trade between the two countries as there are still a lot of U.S. plants eligible to export to China.
“China’s pork demand is expected to improve in the coming months and prices are being pressured to climb further,” Pan added.
The occurrence follows Beijing’s halt on shipments of meat products from two other US plants in the past month or so, citing the presence of ractopamine, a feed additive used in the US but banned by China.
At the same time, Tyson Foods has terminated Chris Langholz’s services as international group president, according to a Form 8-K filed to the US Securities and Exchange Commission (SEC).
Tyson spokesperson Derek Burleson confirmed that Langholz was no longer with the organization, however, he did not say the reason for the termination.
Langholz is said to have previously worked as president of Cargill Asia Pacific and spent around 25 years with the company.
In November 2020, Langholz led the charge with Tyson to make overseas acquisitions and joint ventures in various countries, including China, India, Brazil, Thailand, Malaysia, Australia, the Netherlands, and South Korea.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro-industry. SUBSCRIBE HERE.
