June 22, 2007

High tariffs pull down EU pork imports to Japan

High tariffs on frozen pork has been pointed the drop of European pork imports to Japan.

Japan has been importing less EU pork meat during the first third of the year compared to 2006 as the European share of the Japanese pork market fell by 6,500 tonnes to 72,400 tonnes from January to March this year, figures from the British Meat and Livestock Commission (MLC) show.

In contrast, Japan's total imports during the period rose by two percent, or 6,000 tonnes, from 242,700 tonnes to 248,700 tonnes.

Most of Japan's European pork supplies came from Denmark, who saw a 10 percent drop in its trade with the country, despite being Japan's third biggest pork importer.

The MLC said that Japan operates a Pork Differential Duty import tariff system whereby imports of frozen pig meat - which tend to be cheaper, lower quality cuts - attract a higher duty obligation than for more expensive, higher quality cuts, which are more likely to be chilled

Shipments from Denmark are almost exclusively frozen which accounts for higher tariffs, a possible reason for the drastic drop, according to the MLC.

Imports are expected to decrease overall in 2007 as a result of historically high levels of frozen stocks. Imports from France and Hungary also fell substantially, but together these accounted for only two percent of Japan's pork imports over the four month period.

The US is Japan's largest supplier, accounting for 36 percent of supplies. Japan imported an additional 9,500 tonnes of pork from the US between January and April, with supplies comprising a mix of both fresh and frozen cuts in order to minimise import duties.

The MLC said that imports from Canada also saw an improvement by almost 10 percent or 4,900 tonnes, but remain 25 percent lower than for the same period of 2005 as the Canadian industry remains in decline.