In this file:
· China continues to take more EU pork
· UK pork exports drop by 2% in May
· European Pork Production is Supported by Strong Demand from China
China continues to take more EU pork
By Bethan Wilkins, Agriculture and Horticulture Development Board (UK)
29 July 2020
Continuing a strong start to 2020, EU fresh/frozen pork exports were up on the year again in May. Excluding shipments to the UK, which are still affected by a data-reporting problem, shipments were 31% higher than in May 2019 at 271,000 tonnes.
The main reason for the ongoing export strength is continuing demand from the Chinese market. Shipments were 117% higher in the first quarter of the year, and were subsequently up by 128% in April and 107% in May.
These increases have been achieved despite logistical difficulties and increasing competition from other global exporters. China has been keen to import more pork to help stabilise local prices, with supplies still very short due to African Swine Fever curtailing domestic production.
The average price of pig meat and offal exports to China remained elevated during the month at €2.18/kg, but did fall compared to earlier in the year.
Conversely, shipments to Japan and South Korea were lower again in May, influenced by a mix of competition on the global markets and lower demand.
Offal exports from the EU in May were more similar to the year earlier. Excluding the UK, shipments were up just 1% year on year to 108,000 tonnes.
Increased volumes to the main market, China (+15% year-on-year), supported overall volumes. However, shipments to the Philippines were subdued, at only a quarter of last year’s level. This meant market share fell from 7% last year to just 2% this year. Trade with South Korea also fell, following the trend for fresh/frozen pork.
The average price of pig meat exports to China remained elevated during the month. However, offal prices were the lowest since last July, which meant the average price of exports to China was also the lowest since August.
document, plus charts
UK pork exports drop by 2% in May
By Iain Hoey, Pig World (UK)
July 29, 2020
The disruption caused by COVID-19 can be seen in May trading figures, with UK pork exports recording a 2% decline on the year according to a report by AHDB analyst Felicity Rusk. Meanwhile, UK imports continued to track below last year’s volumes.
Fresh and frozen pork volumes recorded a 2% decline in May, likely attributed to challenges in sourcing shipping containers, particularly refrigerated ones.
Despite the overall slowdown in global trade, exports to China continued to rise, although at a lower level than has been seen in recent months. In May, UK exports of pig meat (including offal) to the China increased by 42% on the year, with export values down on the month, although back in line with March levels.
Within European markets, pork exports to Ireland recorded a signiicant 50% drop compared to the previous year, whist exports to Germany and the Netherlands recorded also a drop in volumes of 5% and 19% respectively.
In addition, exports of sausages and bacon were both under half of the volumes shipped in the same month in the previous year. In contrast, exports of offal continued to show strong growth, with 12% year-on-year growth.
Overall exports in May totalled £51.1 million, 2% more than in the previous year.
“In May, UK imports of fresh and frozen pork continued to track below the previous year, although the rate of decline was not as large as we have seen in recent months,” Ms Rusk commented.
Imports from almost all major source nations recorded a reduction in volumes, including Denmark (-13%), Spain (-20%), Ireland (-34%) and the Netherlands (-44%).
Volumes from Germany bucked the trend, however, increasing by almost a quarter, although this was not enough to compensate for the decline in volumes from elsewhere.
In addition, import volumes of bacon and sausages both fell by around a quarter compared to the previous year. Meanwhile, processed meat imports (including hams, charcuterie) recorded a 14% increase on the year, with a particular uplift in product from Spain (+650%) and Poland (+48%).
Import prices remained higher than year earlier levels, so the value of imports was only down 11% on the year, at £183.9 million.
document, plus table, chart
European Pork Production is Supported by Strong Demand from China
Written by IndexBox
via GlobalTrade - July 28th, 2020
IndexBox has just published a new report: ‘EU – Pork (Meat Of Swine) – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.
Despite the decline in pork consumption in the EU and the UK, domestic producers may receive support due to growing demand from China.
The European Union and the UK together are the largest pork supplier to the global market, and the second-largest consumer in the world, only China is ahead. On the contrary, producers in China are facing serious problems due to the forced reduction in animal numbers in the wake of the African swine fever epidemic.
According to FAO forecasts, pork production in China may fall to 34 million tonnes in 2020, which is almost 17 percent lower than in 2018. The shortage of products in the local market is offset by growing supplies, mainly from Europe and Latin America, in particular Brazil. The United States, the world’s second-largest pork exporter, is losing the Chinese market as a result of a protracted trade war with Beijing, which imposed a 72 percent tariff on US pork in 2019.
In 2020, Europeans can enjoy not only an increase in supplies to China but also rising world prices for pork. This is especially important when the borders for export to Russia are closed due to mutual sanctions. After four years, this market can be considered lost for the Europeans due to the rapidly growing production of Russian farmers.
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Exports in the EU and the UK ...
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