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What the New Trade Deal With Japan Means for US Poultry Farmers

American roosters in silhouette greeting the rising sun

In our recent blog post about what to consider when starting an egg-laying business, we talked a bit about determining the market you want to target with your products.

As a new business owner, you’ll more than likely sell your eggs at a roadside stand on or near your property instead of across the seas in the export market. However, a recent trade deal that the United States signed with Japan back in October 2019 has now created a lucrative time to begin an egg-production or other poultry-focused business, no matter your business goals.

Today’s post highlights the details of this new trade deal and provides a look into why US poultry farmers have applauded this move by the US and Japanese governments.

What is the US-Japan Trade Agreement?

The Council on Foreign Affairs describes the US-Japan trade deal (USJTA), which went into effect on January 1, 2020, as “a limited agreement to lower tariffs and other barriers to trade” between the two countries.

Japan is the United States’ fourth-largest trade partner in terms of importing and exporting goods. The countries traded nearly $218 billion worth of products in 2018, and $13 billion of that total can be attributed to agricultural commodities.

In the new trade agreement, a large number of products will—or already have—become more economical to trade, which ultimately benefits consumers and producers. Tariffs are being reduced or completely eliminated on a wide range of goods. And, while there are plenty of political discussions now occurring about the deal, it is now officially in place.

What Elements of the Agreement Relate to Poultry Businesses?

According to the government’s official fact sheet on the US-Japan trade deal, one of its most significant features is “staged tariff elimination for products such as cheeses, processed pork, poultry, beef offal, ethanol, wine, frozen potatoes, oranges, fresh cherries, egg products, and tomato paste.”

Eventually, US poultry farmers and egg producers will have the ability to ship their products into Japan without trading fees that have existed for many years.

How is the Agreement Affecting American Poultry Farmers So Far?

While it is essential to understand that the total elimination of trade tariffs on poultry and egg products won’t be completely phased in for several more years, the deal is giving US farmers a positive outlook for the future.

A better and more economically favorable ability to export eggs and egg products to Japan will help with oversupply issues that have recently cropped up and lowered prices for conventional eggs in the domestic marketplace.

Producers of cage-free and other alternatively-farmed eggs have been somewhat shielded from this pricing collapse, but the fact remains that sharing our country’s abundance of eggs with others will benefit all. And representatives of agricultural industry groups from around the United States are excited about what the deal means for farmers.

Ready to Start Your Egg or Poultry Production Business?

Here at Freedom Ranger Hatchery, we offer the best egg layer, broiler, and dual-purpose chicken breeds to help you get your business going in the right way. We also regularly publish helpful information on our website about keeping your flock healthy and producing to meet your goals. After all, we want you to be successful with your poultry farming experience.

Get in touch with us today with your questions, or learn more about ordering your chicks from Freedom Ranger Hatchery this season!