CHICAGO, May 11 (Reuters) - U.S. President Donald Trump ordered meat processing plants to stay open to protect the nation's food supply even as workers got sick and died. Yet the plants have increasingly been exporting to China while U.S. consumers face shortages, a Reuters analysis of government data showed.
Trump, who is in an acrimonious public dispute with Beijing over its handling of the coronavirus outbreak, invoked the 1950 Defense Production Act on April 28 to keep plants open. Now he is facing criticism from some lawmakers, consumers and plant employees for putting workers at risk in part to help ensure China's meat supply.
"We know that over time exports are critically important. I think we need to focus on meeting domestic demand at this point," said Mike Naig, the agriculture secretary in the top U.S. pork-producing state of Iowa who supported Trump's order.
Processors including Smithfield Foods, owned by China's WH Group Ltd, Brazilian-owned JBS USA and Tyson Foods Inc temporarily closed about 20 U.S. meat plants as the virus infected thousands of employees, prompting meatpackers and grocers to warn of shortages. Some plants have resumed limited operations as workers afraid of getting sick stay home.
The disruptions mean consumers could see 30% less meat in supermarkets by the end of May, at prices 20% higher than last year, according to Will Sawyer, lead economist at agricultural lender CoBank.
While pork supplies tightened as the number of pigs slaughtered each day plunged by about 40% since mid-March, shipments of American pork to China more than quadrupled over the same period, according to U.S. Department of Agriculture data. https://tmsnrt.rs/2YLF1XN
Smithfield, which China's WH Group bought for $4.7 billion in 2013, was the biggest U.S. exporter to China from January to March, according to Panjiva, a division of S&P Global Market Intelligence. Smithfield shipped at least 13,680 tonnes by sea in March, Panjiva said, citing its most recent data.
Smithfield, the world's biggest pork processor, said in April that U.S. plant closures were pushing retailers "perilously close to the edge" on supplies.
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States reopen, relax guidelines to prevent coronavirus spread
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States reopen, relax guidelines to prevent coronavirus spread
NEW YORK, NEW YORK - MAY 06: An employee wearing a mask cleans the inside of the restaurant, Blue Stripes Cacao Shop as it prepares to reopen for takeaway and delivery orders after being closed for over a month amid the coronavirus pandemic on May 6, 2020 in New York City. Governor Andrew Cuomo made the announcement that all bars and restaurants must close by on March 16th unless it was takeout or delivery. COVID-19 has spread to most countries around the world, claiming over 263,000 lives with over 3.8 million cases. (Photo by Alexi Rosenfeld/Getty Images)
NEW YORK, NEW YORK - MAY 06: An employee wearing a mask cleans the inside of the restaurant, Blue Stripes Cacao Shop as it prepares to reopen for takeaway and delivery orders after being closed for over a month amid the coronavirus pandemic on May 6, 2020 in New York City. Governor Andrew Cuomo made the announcement that all bars and restaurants must close by on March 16th unless it was takeout or delivery. COVID-19 has spread to most countries around the world, claiming over 263,000 lives with over 3.8 million cases. (Photo by Alexi Rosenfeld/Getty Images)
THOUSAND OAKS, CA - MAY 06: A Cadillac Dealership displays a sign stating its reopened during the Coronavirus Pandemic on May 06, 2020 in Thousand Oaks, California. The coronavirus pandemic worldwide has claimed over 263,000 lives and infected over 3.7 million people. (Photo by Josh Lefkowitz/Getty Images)
HOUSTON, May 5, 2020 -- Customers shop at a shopping mall in Frisco, on the outskirts of Dallas, Texas, the United States, May 5, 2020. After closed for several weeks due to the outbreak of COVID-19 pandemic, the shopping mall reopened with shortened business hours on Tuesday. (Photo by Dan Tian/Xinhua via Getty) (Xinhua/ via Getty Images)
HOUSTON, May 5, 2020 -- Cars are parked in front of a shopping mall in Frisco, on the outskirts of Dallas, Texas, the United States, May 5, 2020. After closed for several weeks due to the outbreak of COVID-19 pandemic, the shopping mall reopened with shortened business hours on Tuesday. (Photo by Dan Tian/Xinhua via Getty) (Xinhua/ via Getty Images)
Dawson Padilla (L), owner of a protein shakes store, works behind the bar on May 5, 2020 in Stillwater, Oklahoma. - In the face of intimidation against employees and the threat of an armed attack by local residents wielding their individual liberties, the mayor of Stillwater had to give in: he gave up imposing the wearing of masks on customers in shops. This demand was included in a 21-page document that was supposed to accompany the gradual reopening of restaurants and shops from 1 May, as authorized by the state of Oklahoma. "About three and a half hours after the law came into effect" of the text, "we started receiving calls from stores claiming that employees were being threatened and insulted, and threatened with physical violence," said Norman McNickle, the city's director of services. (Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE/AFP via Getty Images)
A worker of the Aspen Cafe wears a mask as she makes coffee on May 5, 2020 in Stillwater, Oklahoma. - In the face of intimidation against employees and the threat of an armed attack by local residents wielding their individual liberties, the mayor of Stillwater had to give in: he gave up imposing the wearing of masks on customers in shops. This demand was included in a 21-page document that was supposed to accompany the gradual reopening of restaurants and shops from 1 May, as authorized by the state of Oklahoma. "About three and a half hours after the law came into effect" of the text, "we started receiving calls from stores claiming that employees were being threatened and insulted, and threatened with physical violence," said Norman McNickle, the city's director of services. (Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE/AFP via Getty Images)
Kelly Lyda, owner of the Aspen Cafe, stands in his Cafe on May 5, 2020 in Stillwater, Oklahoma. - In the face of intimidation against employees and the threat of an armed attack by local residents wielding their individual liberties, the mayor of Stillwater had to give in: he gave up imposing the wearing of masks on customers in shops. This demand was included in a 21-page document that was supposed to accompany the gradual reopening of restaurants and shops from 1 May, as authorized by the state of Oklahoma. "About three and a half hours after the law came into effect" of the text, "we started receiving calls from stores claiming that employees were being threatened and insulted, and threatened with physical violence," said Norman McNickle, the city's director of services. (Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE/AFP via Getty Images)
Computer specialist Toby Angel drinks his coffee on May 5, 2020 in Stillwater, Oklahoma. - In the face of intimidation against employees and the threat of an armed attack by local residents wielding their individual liberties, the mayor of Stillwater had to give in: he gave up imposing the wearing of masks on customers in shops. This demand was included in a 21-page document that was supposed to accompany the gradual reopening of restaurants and shops from 1 May, as authorized by the state of Oklahoma. "About three and a half hours after the law came into effect" of the text, "we started receiving calls from stores claiming that employees were being threatened and insulted, and threatened with physical violence," said Norman McNickle, the city's director of services. (Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE/AFP via Getty Images)
WESTPORT, CONNECTICUT - MAY 05: A cafe along a shopping street in the affluent community remains mostly empty of pedestrians and open stores on May 05, 2020 in Westport, Connecticut. A growing number of states have begun reopening parts of the economy amid demonstrations like the one yesterday that targeted the Connecticut state capital and the governor's mansion in Hartford. (Photo by Spencer Platt/Getty Images)
WESTPORT, CONNECTICUT - MAY 05: A cafe along a shopping street in the affluent community remains mostly empty of pedestrians and open stores on May 05, 2020 in Westport, Connecticut. A growing number of states have begun reopening parts of the economy amid demonstrations like the one yesterday that targeted the Connecticut state capital and the governor's mansion in Hartford. (Photo by Spencer Platt/Getty Images)
LAGUNA HILLS, CA - MAY 05: Customers maintain safety protocols at The BarberHood in Laguna Hills, CA, on Tuesday, May 5, 2020. The shop is one of the first to re-open and defy the state"u2019s stay-at-home order during the COVID-19 (coronavirus) lockdown. (Photo by Paul Bersebach/MediaNews Group/Orange County Register via Getty Images)
SAN CLEMENTE, CA - MAY 05: Visitors walk on the beach south of the pier in San Clemente, CA on Tuesday, May 5, 2020. The city opened its beaches for daily active use after coordinating with Gov. Gavin Newsom"u2019s office to maintain social distancing during the COVID-19 (coronavirus) lockdown. (Photo by Paul Bersebach/MediaNews Group/Orange County Register via Getty Images)
SAN CLEMENTE, CA - MAY 05: Surfers were back on the waves at T Street in San Clemente, CA on Tuesday, May 5, 2020. The city opened its beaches for daily active use after coordinating with Gov. Gavin Newsom"u2019s office to maintain social distancing during the COVID-19 (coronavirus) lockdown. (Photo by Paul Bersebach/MediaNews Group/Orange County Register via Getty Images)
KENMORE, WA - MAY 05: Lynette Fisher-Charles and her dog Gracie, a two-year-old springer spaniel, go for a hike in Saint Edward State Park on May 5, 2020 in Kenmore, Washington. The first phase to reopen the state begins today easing some restrictions including opening some parks, that were put in place during Governor Jay Inslees Stay Home, Stay Healthy order last March to help reduce the spread of COVID-19. Kenmore, WA is located northeast of Seattle. (Photo by Karen Ducey/Getty Images)
KENMORE, WA - MAY 05: Daryl Kline, a park ranger at Saint Edward State Park removes a sign saying the park is closed on May 5, 2020 in Kenmore, Washington. The first phase to reopen the state begins today easing some restrictions that were put in place during Governor Jay Inslees Stay Home, Stay Healthy order last March to help reduce the spread of COVID-19. Kenmore, WA is located northeast of Seattle. (Photo by Karen Ducey/Getty Images)
LAGUNA BEACH, CA - MAY 05: Lifeguards keep a lookout at Laguna Beach, CA after officials reopened access to the sand on Tuesday, May 5, 2020. The beach has been closed since March 23, 2020 due to the COVID-19 (coronavirus) outbreak. City parks along the beach are still closed and people cannot sit or linger on the sand. (Photo by Paul Bersebach/MediaNews Group/Orange County Register via Getty Images)
NEW YORK, May 4, 2020 -- Photo taken on May 4, 2020 shows Times Square in New York, the United States.
Amid the ongoing COVID-19 pandemic, New York Governnor Andrew Cuomo on Monday outlined additional guidelines regarding when regions can reopen.
According to the Governor's Press Office, the state will monitor four core factors to determine if a region can reopen: number of new infections, health care capacity, diagnostic testing capacity and contact tracing capacity. (Photo by Wang Ying/Xinhua via Getty) (Xinhua/Wang Ying via Getty Images)
NEW YORK, May 4, 2020 -- A worker cleans a cafe's signboard at Times Square in New York, the United States, May 4, 2020.
Amid the ongoing COVID-19 pandemic, New York Governnor Andrew Cuomo on Monday outlined additional guidelines regarding when regions can reopen.
According to the Governor's Press Office, the state will monitor four core factors to determine if a region can reopen: number of new infections, health care capacity, diagnostic testing capacity and contact tracing capacity. (Photo by Wang Ying/Xinhua via Getty) (Xinhua/Wang Ying via Getty Images)
ASBURY PARK, NJ - MAY 4: People walk near the closed boardwalk due to the outbreak of COVID-19 in the state on May 4, 2020 in the Jersey Shore in New Jersey. Some towns at Jersey Shore expect the reopening of beaches soon. (Photo by Eduardo MunozAlvarez/VIEWpress/Corbis via Getty Images)
NORTH ANDOVER, MA - MAY 4: Although all golf courses in Massachusetts are still ordered to stay closed by governor Charlie Baker, workers at the North Andover Country Club in North Andover, MA work on the grass on May 4, 2020, getting the course ready for when they eventually are allowed to re-open. (Photo by Jim Davis/The Boston Globe via Getty Images)
LOS ANGELES, CA - MAY 04: Gov. Gavin Newsom announced select retail businesses will be allowed to reopen starting Friday in California during the coronavirus pandemic on Monday, May 4, 2020 in Los Angeles, CA. (Jason Armond / Los Angeles Times via Getty Images)
SANFORD, UNITED STATES - MAY 04, 2020: Customers enjoy a meal at Racks Billiards Sports Bar and Grill on the first day that retail stores and restaurants in all Florida counties except Palm Beach, Broward, and Miami Dade were permitted to reopen as COVID-19 restrictions are eased. Under phase one of the plan to reopen the state, stores and restaurants are limited to 25 percent of their indoor capacity.- PHOTOGRAPH BY Paul Hennessy / Echoes Wire/ Barcroft Studios / Future Publishing (Photo credit should read Paul Hennessy / Echoes Wire/Barcroft Media via Getty Images)
SANFORD, UNITED STATES - MAY 04, 2020: A customer leaves a Books-A-Million store on the first day that retail stores and restaurants in all Florida counties except Palm Beach, Broward, and Miami Dade were permitted to reopen as COVID-19 restrictions are eased. Under phase one of the plan to reopen the state, stores and restaurants are limited to 25 percent of their indoor capacity.- PHOTOGRAPH BY Paul Hennessy / Echoes Wire/ Barcroft Studios / Future Publishing (Photo credit should read Paul Hennessy / Echoes Wire/Barcroft Media via Getty Images)
BOZEMAN, MT - MAY 04: Sales staff wear masks at the reopened Schnee's Boots, Shoes and Outdoors on Main Street on May 4, 2020 in Bozeman, Montana. Wyoming health officials today reported that the state's confirmed coronavirus cases grew by nine to a total of 444. (Photo by William Campbell/Getty Images)
BOZEMAN, MT - MAY 04: Signs for restaurants and stores announce their reopenings on Main Street on May 4, 2020 in Bozeman, Montana. Wyoming health officials today reported that the state's confirmed coronavirus cases grew by nine to a total of 444. (Photo by William Campbell/Getty Images)
JENSEN BEACH, FLORIDA - MAY 04: Cole Hunter carries Harper Hunter, 1, as Holly Hunter,4, follows along as they arrive at the beach on May 04, 2020 in Jensen Beach, Florida. Restaurants, retailers, as well as beaches and some state parks reopened today with caveats, as the state continues to ease restrictions put in place to contain COVID-19. The counties of Palm Beach, Broward and Miami Dade continue to maintain restrictions. (Photo by Joe Raedle/Getty Images)
JACKSONVILLE BEACH, FLORIDA - MAY 04: People are seen dining outside at Cruisers Grill as the state of Florida enters phase one of the plan to reopen the state on May 04, 2020 in Jacksonville Beach, Florida. Restaurants, retailers, beaches and some state parks reopen today with caveats, as the state continues to ease restrictions put in place to contain the coronavirus (COVID-19). (Photo by Sam Greenwood/Getty Images)
JACKSONVILLE BEACH, FLORIDA - MAY 04: People are seen at a department store as the state of Florida enters phase one of the plan to reopen the state on May 04, 2020 in Jacksonville Beach, Florida. Restaurants, retailers, beaches and some state parks reopen today with caveats, as the state continues to ease restrictions put in place to contain the coronavirus (COVID-19). (Photo by Sam Greenwood/Getty Images)
SAINT AUGUSTINE, FLORIDA - MAY 04: A mask is seen on the statue of Henry M. Flagler as the state of Florida enters phase one of the plan to reopen the state on May 04, 2020 in Saint Augustine, Florida. Restaurants, retailers, beaches and some state parks reopen today with caveats, as the state continues to ease restrictions put in place to contain the coronavirus (COVID-19). (Photo by Sam Greenwood/Getty Images)
A man works on power lines in Los Angeles, California on May 4, 2020, amid the coronavirus pandemic. - California governor Gavin Newsom earlier today announced the gradual reopening of the state later this week as dismal US employment figures are expected with the release of figures Friday May 8 for April's US jobs report, as 30 million Americans filed for unemployment in the last six weeks. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. BROWN/AFP via Getty Images)
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The company is now retooling its namesake pork plant in Smithfield, Virginia, to supply fresh pork, bacon and ham to more U.S. consumers, according to a statement. The move is an about-face after the company reconfigured the plant last year to process hog carcasses for the Chinese market, employees, local officials and industry sources told Reuters.
The Virginia facility currently serves export markets like China and domestic customers, according to Smithfield. Most U.S. pork processors routinely export products to more than 40 international markets, company spokeswoman Keira Lombardo said.
The virus infected about 850 employees at another Smithfield pork plant in Sioux Falls, South Dakota. Across the U.S. industry, about 5,000 infections and 20 deaths occurred, according to the U.S. Centers for Disease Control and Prevention.
"That tragic outcome is all the worse when the food being processed is not going to our nation's families," said U.S. Representative Rosa DeLauro, a Democrat from Connecticut. "That is what the Defense Production Act is all about: protecting America's national interests, not China's."
Pork processor Fresh Mark resumed making bacon and ham for global customers at a Salem, Ohio, plant it shut in April over coronavirus cases.
"If we start having a shortage in America, I think it should stay here," said Bruce Fatherly, a maintenance worker at the plant and member of the Retail, Wholesale and Department Store Union.
Fresh Mark said exports are a small part of its business.
WHOLE HOGS
The supply concerns could not have been foreseen when Trump signed a deal in January to ease a trade war he started with Beijing two years earlier. China promised to increase purchases of U.S. farm goods by at least $12.5 billion in 2020 and $19.5 billion in 2021, over the 2017 level of $24 billion.
The White House declined to comment. The USDA and U.S. Trade Representative's office did not respond to requests for comment.
China increased its purchases because of its dire need for protein after a pig disease called African swine fever led to the death of half the country's herd over the past two years. Beijing lifted a nearly five-year ban on U.S. chicken imports in November and also waived retaliatory tariffs on meat shipments to help boost supplies.
Year-to-date, about 31% of U.S. pork has been exported, totaling about 838,000 tonnes, according to the U.S. Meat Export Federation. One-third of that volume went to China, accounting for more than 10% of total first-quarter production, the industry group said.
Carcasses, which include most of the pig, were the top product shipped to China in January and February, according to USDA. Loads also include feet and organs that many Americans do not eat.
Exports to China set a record for the period from January to March, and shipments to all destinations in March set a record for any month, according to USDA.
JBS, which produces pork, beef and chicken, told Reuters it reduced exports to focus on meeting U.S. demand during the pandemic. About 280 employees at a JBS beef plant in Greeley, Colorado, have been infected with the virus, and seven died, union officials said.
"I think we need to take care of our country and our needs first," said Kim Cordova, president of the local United Food and Commercial Workers International Union that represents plant employees.
Tyson Foods did not respond to requests for comment about exports.
Suppliers like Tyson have limited meat products for retailers because of plant closures. Kroger Co and Costco Wholesale Corp, meanwhile, restricted shoppers' meat purchases.
U.S. farmers, who struggled financially during the trade war with Beijing, say they still need importing countries, including China, to buy their pork. Prior the pandemic, they grappled with an oversupply of hogs.
"There's enough meat for all channels if we could get these plants back up and rolling," said Brian Duncan, a hog farmer and vice president of the Illinois Farm Bureau.
(Additional reporting by Karl Plume in Chicago and Dominique Patton in Beijing; editing by Caroline Stauffer and Edward Tobin)
