Hormel, Tyson Foods, JBS To Remove Hog Chemical Banned By China

Spam-producer Hormel Foods Corp is getting rid of a growth chemical banned by China from its hog business, the company announced Tuesday, as they team up with competitors seeking to jack up meat profits to Chinese customers hounded by a pork shortage.

In a statement, Hormel disclosed that it will no longer accept any poultry or hogs that have been exposed to or injected with the chemical ractopamine after April 1.

Although the drug is approved by the Food and Drug Administration and is touted to boost the volume of lean meat in hogs, some nations like China bans the import of pork that has been fed or injected with the controversial chemical. The European Union also prohibits the use of ractopamine in their hog industry.

JBS USA and Tyson Foods announced in 2019 that they would eliminate ractopamine from their supply chains. The producers' moves increased the competition to earn from growing demand in China, the biggest pork consumer in the world, where the outbreak of the deadly hog disease African Swine Fever has destroyed herds.

Hormel stated that they have been actively keeping a tight watch on the "changing global market dynamics" for many years and believe their decision will further place the company to meet rising global demand.

China is projected to purchase more pork from the US after they agreed to hike imports of American farm products as part of an initial trade accord signed in January with Washington, Reuters said. China said it will allow limitations on retaliatory taxes implemented against 696 US farm goods, which include pork.

Elanco Animal Health Inc manufactures Paylean, its brand label for a ractopamine feed supplement.

"We are dismayed in the decision that would take safe, tested technology out of the hands of our farmers," Elanco announced.

Chinese economic officials agreed, as part of the trade agreement, to cooperate with American experts to undertake a risk validation for ractopamine in swine and cattle "as soon as possible and without any delays."

Based on the agreement, the countries will form a joint working committee to discuss the measures to be imposed on the results of the assessment. Prices of Chinese pork in the last few days neared new peaks reached in 2019.

Hormel, which sells ham, pork tenderloin, and other meat goods, does not slaughter the hogs themselves. Instead, the company teams up with third-party producers that process the meat for Hormel's raw materials.