Live Swine from Canada

194 Pages·2005·4.96 MB·English

Live Swine From Canada

Investigation No.731-TA-1076 (Final)

Publication 3766 April 2005

U.S. International Trade
al Trade Commi

COMMISSIONERS,
Stephen Koplan, Chairman
Deanna Tanner Okun, Vice Chuirman
Marcia E. Miller
Jennifer A. Litman
Charlotle R. Lane
Daniel R, Pearson

Robt A, Regowsky
Director of Operations

Sta espe

Neagle tary ater
Tri Foslrd Arcee
nt Fates, Astarmy

(George Deyn, Sipervisretevestigetor

Adasess all evan

Sveretary the Come

United States International Trade Commission
‘Washington. DC 20436
r

U.S. International Trade Com :

‘Washington, DC 23435,
wrmesive go

Live Swine From Canada

Investigation No. 731-TA-1076 (Final)

Publication 3766

Aprit 2005,

CONTENLS,

‘Views uf the Comalstion
Piet Taandact na
Baskgraal
Buirminey date
Previuus investigations
‘aon aul cata of ees at LTRS
118 att seacmene
Stumunagy of US. marke: patcipsuts
‘he sub ect prodoae
Classification of live sine
Peaguetion segss and c-asifestioa ot peedncers
Praguetion phases
Danwstc lke prodve:
‘Wenalings. order pipe. ans sar phor herrews and gles
‘Sew and boars
Port tk Conditions of comporician ia the LLS, roarket
The tne syele
ES. market sagmeatsfchinvels of ieritution
‘Sopply etl dertind vonsieraions
US. supply
US. deed
Subsitatabilityisstes
TFuclurs affecting pauchasiny decisions
Cunpaisons of domestic products ne prs thom Cauaca
Blastvily eximates
US. supply sesticity
TIS demand clariciy
Suotisionelatiity
or TUS. producers” produstinn shipment, and emplayment
5. pralusing
8, pada” bideding sock and pending
18. ramus” U.S. shipments smd sapere shipments
SUS. preseers” purchases a impos
{LS. roencers” merimes and ampleymert
PRES and other swine diseases
LS. prxtneses” opinions onthe impact of iapors en the demestc astry
Pam 1¥: US, ingens snparone U.S. consumption, ed mAKkst stars
US. mporess
TTR ines
Apparent US. consumption and asker shares
TES vad Causlian bowing bends
CONTENT!

Page
Pare Vs Pricing and eeited foun vt
Factor alfecting pecing| Nat
ood rts va
Aninaporition 206644 the C8, marker va
Exchange rates v1
Pricing prcives we
Uriserelated questions vd
rice derenmiainas ané enetracrs va
rice daa va
Price ends vs
Price xompatisons vd
Tan sales od fos estos vas
tar Vi: Tiucil contition ofthe LS. intusery wu
Backenad VEL
DDperaliyason all iv sine vii
Operitison sows and boars vis
Capital ned investment vio
USDA dai pn Tive sine production cose and retums ww
US. Government programs wy
Pt VTE Threat considerations viet
Ie iusey Ca viet
U.S. importers” invenocies wae
Prokerldistrbutorsinpartes:impout singe Deceuucr 31,20 Rusa
(Covnteeaifing aidoe antidumping uty orders i hi! commer wma
Appendixes
AL bedava Regier ices Al
1B. Being viloes:as Th
©. Sonmasny ds cl
D. Agg-ezited TS, live seine prducess” qucecionaave data and allen iscoicat dale
‘oboe Te sine pi
1, eh impor: data on
T.Anasal pork export dre FL
G._ Murthy USDA prices ‘ar (Gpaund, A0-pound. and 55-pound pigs aud stauchte: hogs tort

Purdue puloos foe Fvesorine pamed 99 1.8, paduce"s an brokers@stdbulcasfunposters HL
Allegeetfets oF ports of lve swine feara Canada or TS. prodsvers
texiskay developuneut at prodtion efforts, growth, investment
bie ts nse capital. av sale ct eapitl imeamacras iat
43. ndividal Rroneial esses 0 U.S, pundaces ee ated 0 Cava fre sngugel ia he
Producto uflirw nine aml U8. nitsavn tha innpertd andor pocchasd
Canis tse vive nu

Noic-talormaties, tha cold reveal cofidentsl epermtiors oF individual conew'ns may’ nol be eublisied
nd tereleme ts een eleted fom this report. Spc doktions are Sadizaed hy asters
{UNITED STATES INTER\ATIOVAL TRADE COMBUSSION

aves gution No, T3LTA-1076 (Final)

TIVE SWINE PROM CANADA

DETERMINATION

(On ins husis uf te recone’ develuped in ue subject invstigatien the United States Intmelinaal
Teds Cormmiasion (Comnniasam, ceteris, pursuant to set 73S(b} ofthe Tasif et of 1930 (19
USC. § 1OFSA(BM bs Ac, thal an vrlusty 1 lhe Une Stale is Dot eateiallyinjsed or ehetened
‘sith trial injay, and the eaabichmerl uf an industry inthe ited Staes isnot wnleinly etude,
ty rearen of ipa frm Canad of live sine, provided Fri, subheadings 0103.94.00 aad 0103.92.00
ff the Harmomged Tarif Schalule ofthe United Sates, (al hace been tound by the Depautnent of
CCorsmeree (armerce} tate sald in Che Used Staten at ess than Jie value TEV

BACKGROUND

‘he Commission innit hi investigation effective Vaweh 5,200. following recsipe ot
petition fled with the Corunisiva ail Coronas by the Natal Paak Prodvesre Coun, Washing:on,
‘BC; aad ausiiovs state aosciative al individu addons. ‘The fal phese of the Tvestigarion was
sched led by the Commission “ellowing rotificariqn ofa preliminary dsterminacin by Cmmene that
impos of Live seins Fora Canada wove boing soldat 1-TEV within the meaning a sect'bn 73561 Of the
Act (29 L:SC-§ 16730(h)}. Nove of the seeing thelial phase ol t

investigation no ofa publi hearing ta he held mn connection thenewth was given hy peeing copies
‘ke aolies in ths Office of the Scxwebry, ILS. Intenatcmal Trude Conmisicn. Washingt. DC, and by
polishing fae notice inthe Federal Register of Nevember 17.2064 {69 TR E7344). The hea:

eld in Washirgton. DC: on March 8, 20S. and all persons wh requeste dhe wpporlunily were
germittod to appear in senan er hy counsel.

un

ura.

rovurd elias. 201 Zi oli Cocummenaa Kelso Moen el roosts 9 LACS

‘VIEWS OF THE COMMISSION

Basel ox the esened iar’ investigation, we determing that en industry nthe Dried Stas is
either malerillyinjwed nor dawned with riatecal injury by reason of imports of se sine Frum
(Cane tht are sold the Dajte Seater a Tees than far value (LIEV)! ®

1 BACKGROUND,

‘he petition for antidumping and countering dutios was fled em Murch 5, 2004. bythe
[National Peck Producers Couusil and uvrucrovs ste asscciations and individual sve producers.
Parlicipaing respondents include the Cruadian Pork Cnancil, he Winitaba Perk Council and several
‘nlividual Canaan producers an exporters. te Ontato Park Producers’ Markerng Boerd (‘Onario
or), and Baxter Transportation, LA, J, Quiotsine & Son, [send Zantingh Sine Tae. (Baxter et
a, une lllertheee of Whi ace expevters and Lnportrs of ows aa hours. Petters and
espeonlents all Gl pre-and paw-hearing rit, and all exerperesnendania Buster eal. ied Gin!
‘sommes in he Final phate ofthis int gatian,

Live caine a gimp ina wearlinge, feeder atimele (termed feeder ps inthe remainder uf
these viens, al laugher animale coed sfanghece hogs oF aret hogs in the einer ef tese
sieve). Wil nayect tn comertialy-prodaced ive swine. csuotels of distribution have bse
Increasingly speciale snd integrate ro ae-oxurmeate dean for specific sis ual iypes uf owin
Hogs are no Tonger delivered lo puhi markets where kuyers biowse abd ehcoce the size and 193¢ oF|
soho they dons. Header swe are. lor the ut purl. sll dieeely Sto. farm co farm traneactons Ty
be based on long-term cwracis er existing relationships with tyokers aud dealsrs. Slavgiter hags are
typically so d directly Fern aroduvers wo packers, Most noa-packer-cwed slaughisr hogs are sald under
som form af market agreemtes.' The mejoity of subjetipests, as measured by mimmber of oud, ure
‘woanfings or feeder pias that ave the fat2ned 2 saugbte: weight the tema der consists of shmghi
hog. The fonmer ze impetedputchased by U.S, fishers ho toot them til thy grower fll
slower weigh Tive stig for iommedare clahter eve primarily inpowtedpurchatee by meat
presen?

11.2004, there ser0 69,120 oparations produsing live owirs mths United Stutes. The meu
resilcal far of aiang live swine it a growesfinicher (finishing only opemeian, whether mewicel by
Dubya of Tyuns read sold, Orher live swine producers chide furrew-to-weanfing, weanling

Cuma derail subside ae nat heag ania wo producers or exporters oe
rie froma Caan 90 Fo. Tey 12186 Mac I. 20NS. Ascerdingly, he Commission erzinate ls
Coualerstlng fy inveigticm olive ming. Whether er ot the esbhehmene of am india ia Use ait! Sales
isrntesily rar fot an sue inchs invention ew #9 USS, § 167 (41H)
Camasioner Dave R,Facsv otparupaing

Cheat IAPR ac,

SCRALIYA,LH AVL, 6 sist te, ae netted imparts mainly rms of wiht even he
de npn Re 2198 sine at eterent sagevaf predsctn,

SR at WILT, 2Rat VU
(eocer (nurseries, fcrowete feeder. and furns--fnish prrducers®* Arner end inthe U.S. cudusry
is town [ewer and lager hog operations”

‘As descebed belove subject imports grow soadily ove the pocwd exuraned, he react ol
rodent levels, Tivo-tieds of the subject ingots sore weantngs ad Feder pigs Wal were used by US,
producers tu produce nazket bogs, Despite the grovl in impers, the domestic industry's product:on
tnd shipriens increased over the peiod anaes sutcrine ta years af opti not icexpe in 202
snd 2003, the indasty earned bigh levels of pros Ia 2004 and is poised fr eoneined strong
performace in 2005

1. DUMESSIC LIKE PRODUCT
As Au General

sn dleteroining Whether aa industry inthe Tilted States materially injured ur threaten wth
slerial injury by 19590 of impart oft subjest merchandise, the Carns list deine Ube
“omestc Tike pandoer” acl the “industry Section 771(0A al the TusiIT Act of 1930, as amended
the Abt), defines do ralevaat domostc industry a8 0 "roducers as [whole ofa dornestic Tike
breuc. or thove produeers wkese callectve ontpat af a domestic Like product constitu a ajar
Proportion of the total doarstic prostien of the prot"? Im turn the Act defines “dusmesic he
eodct™ ap pniact whichis Hike ar nthe abeener of ke, ret sia: in characteristics aud ses
Silly Cie sadclecubjcct co an investigation...

"The dacision oparding te uppropriate damesti ike prowl} in wa vestigation Ts a factual
Aetervinaion. and dis Cominieslon has appice the sututery stanian! of ks" "0a! sila in
husclriades and usee™ om a case-by-case bani” No single factor is disposition, and dhe Camntasion
fay eomrider her Eatons hk dceuns eleva base a ve faeis a particular irvestigation. "= The
‘Cominission looks for lea dling lines aauooa possible ike prodvets ond Uimeurds minor

* Paaaset> nealing precers neve in he bring sores ming thom Joie proenney. a5
sell scaring Ke he baby ogni san. Wessling o-feede oducts re for Sean! pga Tey wei
30 4m RO unde. Faa-o feeder pig produces are invalved in he Erevdng nce Faby igs sume 5
Irth thous of wooing, Enno te-fniea prodocon ope ull praductin mage Troe brea Oi,
Uoslnghtse wcgbt. Finishing, ne greening cperlions ed hey ws mazsry wight a sauger weg
RATT TE PR

“CR at EL, PR aL.

S19. § I67TEHKA.

Hisuse §u677du)

re usc § 16779)

9 See tie NEC Shp. x Toparinenka Coansres, 36 F Sope.28 0.383 (Cet Trade 1994); Nippon Steet
oop Lge Shae 19CTT 450,485 (0995, Tring Cine Stes, P71 Supp, 14, £39 et HT
Thule 1990) af, 088 2d L276 (609. Cr SL every ike pred determination “mst be ce 8 he
putculy eon tise” andthe “unig Inet of ech cane”, be Cumann ererlly exces anak of
Fests ncading: (2) ahyavl charters und wie; 21 alent iy 43) chaunelsof dstebation: (1
‘sister end prndice percrpins oll pra 9) caren matali, ees, poduetan process aod
roche emplyetsra, when appiogi, 8 jee. S28 Suopon 19CIT a 435 nd Timken Co.s, Vale
Saas. D132 Sapp SHU SRU [ne Trade 80,

Se. $. Rep. No, W-24D at VOL (197