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Trump-supporting California farmers fear trade war's impact on cash crops
来源： 编辑：编辑部 发布：2018/08/13 10:03:11
AS China and the US have opened fire in their trade war, Trump-supporting California farmers fear losing long-standing customers, creating a glut for their commodities and lower prices, reports Fox News.
"That is what people fear," said Karen Ross, California Secretary of Food and Agriculture. "If this goes on for a prolonged period of time we will lose significant markets that have been built but one relationship at a time over decades."
On Friday, China threatened new tariffs of five to 25 per cent on roughly 5,000 US products if the US imposed new duties on $200 billion of Chinese imports. The US is looking to convince China to reduce tariffs structure and stop appropriating US intellectual property.
So far, neither side has backed down, and talks are at a standstill. On Saturday, a determined President Donald Trump tweeted, "Every country on earth wants to take wealth out of the US, always to our detriment. I say, as they come, tax them."
Many farmers agree with the President on principle, but dependent on the Chinese market.
California leads the US in agricultural production, $46 billion to second place Iowa at US$27 billion, and first in food processing, with 5,331 plants compared to New York, with 2,508.
China Tariffs on US food imports Commodity Exports to China Tariff (1) Pistachios: $530 million 45 per cent, (2) Almonds: $518 million 50 per cent, (3) Wine: $161 million 35 per cent (4) Oranges: $133 million 51 per cent, (5) Dairy: $126 million 40 per cent, (6) Grapes: $86 million 53 per cent, (7) Walnuts: $78 million 65 per cent, (8) Raisins: $29 million, 50 per cent.
"China buys 30 per cent of the pecans grown in the US," said Blake Houston of Hamilton Ranches. "Even if they decrease by 10 per cent, that affects directly the domestic market tremendously because now we have 10 per cent or 13 tons of nuts. That oversupply is going to lower prices."
China is the state's third-largest export market after the EU and Canada. Here is a list of the largest agricultural exports to China after the latest round of tariffs.
"We need a resolution as quickly as possible," said Richard Marosi, director of the California Pistachio Growers Association. "No grower likes to see tariffs imposed."
Some see a political aspect to the nut tariffs, which impacts the districts of three vulnerable Republican congressmen - Devin Nunes, a close ally of President Trump, David Valado and Jeff Denham. Their San Joaquin Valley districts grow about 99 per cent of US pistachios.
Mr Marosi said the full effect of the new tariff on pistachios won't be fully known until the new crop ships in October. Luckily, the only other major producer, Iran, had a deep winter freeze and production fell by 66 per cent, leaving no nuts available for export.
So the question is will Chinese consumers still buy the nut at a significantly higher price. "China represents a billion dollar market for us," said Jim Zion of Meridian Farms. "More than 25 per cent of everything we produce goes there. We need to get this resolved as quickly as possible."
"That is what people fear," said Karen Ross, California Secretary of Food and Agriculture. "If this goes on for a prolonged period of time we will lose significant markets that have been built but one relationship at a time over decades."
On Friday, China threatened new tariffs of five to 25 per cent on roughly 5,000 US products if the US imposed new duties on $200 billion of Chinese imports. The US is looking to convince China to reduce tariffs structure and stop appropriating US intellectual property.
So far, neither side has backed down, and talks are at a standstill. On Saturday, a determined President Donald Trump tweeted, "Every country on earth wants to take wealth out of the US, always to our detriment. I say, as they come, tax them."
Many farmers agree with the President on principle, but dependent on the Chinese market.
California leads the US in agricultural production, $46 billion to second place Iowa at US$27 billion, and first in food processing, with 5,331 plants compared to New York, with 2,508.
China Tariffs on US food imports Commodity Exports to China Tariff (1) Pistachios: $530 million 45 per cent, (2) Almonds: $518 million 50 per cent, (3) Wine: $161 million 35 per cent (4) Oranges: $133 million 51 per cent, (5) Dairy: $126 million 40 per cent, (6) Grapes: $86 million 53 per cent, (7) Walnuts: $78 million 65 per cent, (8) Raisins: $29 million, 50 per cent.
"China buys 30 per cent of the pecans grown in the US," said Blake Houston of Hamilton Ranches. "Even if they decrease by 10 per cent, that affects directly the domestic market tremendously because now we have 10 per cent or 13 tons of nuts. That oversupply is going to lower prices."
China is the state's third-largest export market after the EU and Canada. Here is a list of the largest agricultural exports to China after the latest round of tariffs.
"We need a resolution as quickly as possible," said Richard Marosi, director of the California Pistachio Growers Association. "No grower likes to see tariffs imposed."
Some see a political aspect to the nut tariffs, which impacts the districts of three vulnerable Republican congressmen - Devin Nunes, a close ally of President Trump, David Valado and Jeff Denham. Their San Joaquin Valley districts grow about 99 per cent of US pistachios.
Mr Marosi said the full effect of the new tariff on pistachios won't be fully known until the new crop ships in October. Luckily, the only other major producer, Iran, had a deep winter freeze and production fell by 66 per cent, leaving no nuts available for export.
So the question is will Chinese consumers still buy the nut at a significantly higher price. "China represents a billion dollar market for us," said Jim Zion of Meridian Farms. "More than 25 per cent of everything we produce goes there. We need to get this resolved as quickly as possible."