February 2, 2017
China imported less pork in 2017; domestic production up 2%
Chinese fresh/frozen pork imports in 2017 fell drastically by 25% to just over 1.2 million tonnes from the previous year, reflecting the ongoing recovery in Chinese domestic production.
In the last quarter of 2017 alone, Chinese fresh/frozen pork imports fell 13% year-on-year to 296,000 tonnes. This was a continuation of the downward trend for pork imports seen since the second quarter of 2017, AHDB Pork reported.
The pork division of UK's Agriculture & Horticulture Development Board said major pork-exporting countries recorded drastic declines in shipments to China in 2017. Proportionally, Denmark recorded the largest drop, with imports falling 44% year-on-year, followed by Germany and the US, whose imports fell 39% and 23% on year-earlier levels, respectively.
The UK, however, recorded year-on-year volume growth to China as it shipped almost 46,000 tonnes of fresh/frozen pork last year, up 6% on 2016. A few minor exporting countries, most notably Mexico, also increased shipments.
"This declining import demand reflects the ongoing recovery in Chinese domestic production", AHDB said. Domestic pork production in 2017 was expected to have increased 2% year-on-year as the expansion of larger farms continues. This, in turn has put downward pressure on Chinese pork prices, making it more competitive with imported pork.
Enhanced living standards and income has also reduced the pace of pork growth in the world's second-largest economy. While pork is still the most favoured meat by the Chinese, consumer demand for other protein sources including chicken, beef and lamb has grown, especially among the more affluent consumers.
According to AHDB Pork, the latest industry reports anticipate Chinese pork production to increase in 2018, supporting the continued reduction in imports.
However, AHDB Pork noted that in some cases it may be more economical to import pork as the domestic pig industry, which has to contend with lack of efficiency in the pig supply chain, has not fully transitioned. "Generally, slaughtering plants are not within the vicinity of pig production areas and there is a lack of modern chill chain infrastructure. These challenges present issues to the industry", it explained. Rick Alberto
