January 31, 2023

 

Danish Crown says pork demand in China remains subdued

 

Jais Valeur, chief executive officer of Europe's largest pork producer Danish Crown, said pork demand in China remains subdued and normalisation could take up to six months, Channel News Asia reported.

 

Despite the relaxation of the China's COVID-19 policies, pork demand in the country remains weak as many people continue to avoid restaurants.

 

Valuer said he does not see any signs of Chinese imports increasing, adding that the Chinese market would likely normalise in six months.

 

Due to increased domestic production, low prices, and sluggish demand, China's imports of pork, the most popular meat in the country, have been cut in half over the last 18 months.

 

Danish Crown also announced 550 job cuts in Denmark and Germany, with 400 of those coming from its Essen, Germany, plant, where capacity is being reduced by 40%. The company announced earlier this month that it would close a plant near Hamburg that employs 200 people.

 

In 2019, Danish Crown opened a processing plant outside of Shanghai. The plant is currently operating at around one-third capacity, which is largely unchanged from levels during the lockdown.

 

Danish Crown produces nearly 20 million pigs annually.

 

China, the world's largest pork producer, increased its pork output last year to its highest level since 2014, thanks to a summer price surge that encouraged farmers to fatten pigs more than usual. However, China's Ministry of Agriculture and Rural Affairs urged farmers to reduce excess pork output this month.

 

Slow Chinese demand has affected the European market. African swine fever outbreaks in some European countries, including Germany, have pushed Spanish producers to increase output for imports to China.

 

-      Channel News Asia