March 27, 2018

EU pork exports decline 2% in January

The EU's pork exports in January declined 2% to 183,000 tonnes compared with the same month last year, AHDB Pork reported, citing the latest data from Eurostat.

The value of exports was also down, by 5% on year-earlier levels, at €423 million, as average prices declined 3%, reflecting a drop in farm gate prices.

Asia continued to dominate the market, despite a significant 22% decline (-17,000 tonnes) in shipments to China compared with last year. Chinese pig prices have been declining significantly since mid-January, suggesting the market is currently oversupplied. These lower domestic prices also reduced the competitiveness of imported products. Exports to Hong Kong also fell, by 32% (-3,500 tonnes) year-on-year during the month.

Other Asian destinations partly counteracted the decline in shipments to China. Exports to Japan increased 15% (+3,800 tonnes), while South Korean volumes were up 28% (+5,700 tonnes) and the Philippines grew 42% (+2,600 tonnes) year-on-year.

Demand from the US was also strong, with volumes increasing 71% on year-earlier levels to 10,800 tonnes, despite rising domestic production.

Offal exports

Offal exports were also down in January, by 13% compared with the previous year, to 105,000 tonnes, With lower average unit prices, the value was down, by 21%, at €129 million. Lower shipments to both China (-18%, 13,300 tonnes) and Hong Kong (-34%, 6,400 tonnes) drove the overall decline.

With Greater China accounting for around 70% (60,200 tonnes) of EU offal exports, expansion to other destinations could not compensate for the lower Chinese demand. Nevertheless, EU offal exports to most smaller markets increased year-on-year in January.