February 20, 2018

EU pork exports decline 9% in 2017

Overall exports of EU fresh/frozen pork in 2017 declined 9% compared with the previous year, totalling just under 2.1 million tonnes, according to the latest statistics from Eurostat, AHDB Pork reports.

The fall is despite a rather strong return to growth in December, which registered a gain of 9% on year-earlier levels to reach 181,900 tonnes.

The pork division of the Agriculture & Horticulture Development Board said the decline was reduced in value terms as the average unit prices were higher than year-earlier levels. At €5.1 billion (US$6.294 billion), exports in 2017 were only 3% less than the 2016 levels.

The overall decline was driven by falling Chinese import demand, with shipments to this market declining by over 25% for the year. However, the decline was partially countered by increasing exports to alternative markets, most notably the US and, to a lesser extent, Japan and the Philippines.

Increased shipments of frozen bellies were key to driving growth in exports to the US last year, the AHDB Pork said.

The AHDB Pork noted, though, that the EU managed to gain some market share on the key Chinese market at the end of 2017, with the US and Canada losing out despite offering lower average unit prices.

"This might bode well for EU export prospects this year. However, with North American production expected to expand further this year, competition on the Asian markets will likely continue to heat up", it said. Rick Alberto