March 28, 2012

As Dutch pork exports fell marginally, Danish exports of fresh and frozen pork were 5% higher in 2011 than the previous year.

China accounts for nearly 50% of global production and consumption of pig meat. However, given the scale of the industry, small production changes can have a significant impact on price. During summer of last year, Chinese pig meat prices rose to record highs. Since then, there has been a steady fall in prices.

According to the AHDB European Market Survey for March, pig meat prices in China are now less than 5% higher than their level a year ago.

Some of the major factors contributing to falling prices in China are the expansion of the Chinese pig herd as a result of improved profitability, government subsidies and warmer weather, which led to a lower incidence of disease outbreaks this winter.

The Chinese government has recently released its 12th five-year plan for agricultural development. The plan aims to increase Chinese pig meat production by 6% by 2015. It also sets out goals to modernise the industry and improve productivity.

2011 witnessed a contrast in Dutch and Danish pig meat exports. While Danish exports of fresh and frozen pork were 5% higher in 2011 than the previous year at over 1.2 million tonnes, Dutch exports of fresh and frozen pork fell marginally in 2011, compared with 2010, despite a rise of 2% in production.

The growth in Danish exports emulates an increase in pork production over the same period and some increase in export demand. Trade with other member states of the EU rose by 3% on year. Shipments to non-EU states rose by 10% but still only accounted for 29% of trade.

Dutch pig meat trade with other EU member states dropped by 4% on-year, whereas exports to non-EU markets increased by 20% to make up 17% of the total. The average export price increased 6% on-year. By value, Dutch exports to non-EU markets increased by 30%.