May 4, 2017

China continue to offer opportunities for pork exporters

Chinese pork imports in the first quarter increased 21% to 346,000 tonnes compared with the same period in 2016, AHDB Pork said, citing the latest figures from the Chinese customs.
 

Still, there has been a considerable slowdown compared with 2016 when volumes were more than double those of 2015.

The EU remained the primary supplier of pork to China, but at 69%, the market share had dropped by four percentage points compared with the first quarter in 2016. Growth in Spanish shipments remained strong, at 42% year-on-year, but Germany saw a relatively modest growth of only 6%.

Expansion in German shipments has been limited as seven plants had their export licences suspended in February. In contrast more Spanish plants have been able to obtain licences to supply China.

Danish exports showed a 19% decline year-on-year, but the UK maintained export growth, with volumes up 17%.

Outside the EU, Canadian shipments showed a 52% growth on 2016. Its market share increased compared with the first quarter last year by two percentage points. According to the pork division of the UK Agriculture & Horticulture Development Board, this development was likely aided by competitive unit prices, below those of the other key exporters. Canada is now the third-largest single country supplier.

While shipments have not yet returned to record levels seen in mid-2016, AHDB Pork noted signs that volumes may be picking up. Imports were up 48% on the year in February, a traditionally weak month due to the post-Chinese New Year lull in demand. At 124,000 tonnes, March also boasted the highest monthly import figure since September last year. "These developments were likely influenced by further falls in production", AHDB Pork said.

It said import demand is expected to remain firm and means there are likely to be opportunities for pig meat exporters to China in the coming months. This includes the UK, with China now the largest destination for UK pork exports.