China's import duties on U.S. pork may have a limited impact on Smithfield Foods, according to CEO Kenneth Sullivan. China only buys seven percent of Smithfield's fresh pork output and Sullivan said the company may still ship pork to China. "We will find markets," Sullivan said in a Monday analyst call. "We ship to more than 40 countries. We may very well ship to China even with an increased tariff." China has said it may impose duties on pork and other U.S. products in response to the threat of the U.S. setting steel and aluminum duties on Chinese products.
China's WH Group, the owner of Smithfield, has seen its shares come under pressure in the wake of the Chinese tariff announcement, a situation which Sullivan said was an overreaction by traders. He also said the pressure on pork prices may also end up benefitting Smithfield.
