Some 1.1 million tonnes of red meat and poultry are in cold storage facilities as of the end of May, as major destinations for meat exports implement counter-tariffs against the US.

According to a US Department of Agriculture (USDA) estimate, the volume of meat in storage is running 8% above this time last year and is slightly below record levels.

Reports from the Wall Street Journal indicate this figure could be about to rise even higher when the USDA releases its latest estimates.

Fears are growing among producers that further increases to stockpiles will cause a major decline in farmgate prices.

Surge in supply

The US meat industry has seen a surge in supply this year and it is projected that a record 46 million tonnes of meat will be produced. This has been driven by record production of pigs and poultry and although domestic consumption is predicted to rise, it is not at a fast enough pace.

In normal years, much of this extra supply would be exported to Mexico and China, who are two of the largest foreign buyers of US meat. However, in response to tariffs imposed by Donald Trump’s administration on steel, aluminium and other goods, they have responded by setting tariffs on US pork products.

Mexico has raised its tariff to 20%, while China has increased its tariff to 62%.

US-China trade tensions escalate significantly

1.1 million tonnes of US meat piles up as Trump tariffs damage exports

Tariffs introduced by China and Mexico have seen stockpiles of meat beginning to increase in the US as farmers fear a crash in prices.