May 11, 2018

Japan pork imports down 2% in 1st quarter

In contrast to strong gains in pork shipments to Japan last year, import volumes in the first quarter were down 2% year-on-year to 220,100 tonnes, according to the latest figures from the Japan Ministry of Finance, AHDB Pork reported.

Value similarly fell 2% to 116 billion yen.

The overall decline was mainly driven by a 6% (-4,000 tonnes) year-on-year drop in shipments from the US. Canada also recorded a 3% (-1,300 tonnes) fall in volumes traded compared with year-earlier levels.

The pork division of the UK levy body Agriculture & Horticulture Development Board said shipments of frozen pork, in particular, from the US and Canada sharply declined 14% and 33%, respectively, during the reviewed quarter.

It said Japan's frozen pork import market is dominated by the EU, which typically accounts for over 60% of the total supplied. Japanese pork imports from the EU were stable during the quarter. Within the 28-member bloc, imports from Spain were up 11% year-on-year (+2,700 tonnes), 13% (+700 tonnes) in the Netherlands, 6% (+300 tonnes) in Germany and 19% (+500 tonnes) in Italy.

Imports from Denmark, normally the largest EU supplier, were, however, down 9% (-2,500 tonnes). This meant Spain became the primary EU trader, AHDB Pork said.

Meanwhile, it was noted that pork wholesale prices in Japan have fallen sharply so far this year, with the March average the lowest recorded since early 2013. "This will have weakened the competitiveness of imported product, and also suggests supplies may be ahead of current demand levels", AHDB Pork said.

Nevertheless, AHDB Pork cited the latest USDA forecasts anticipating that Japanese pork imports could increase 2% (+25,000 tonnes carcass weight equivalent) this year, even as Japanese pork consumption is expected to increase 1% (+36,000 tonnes cwe).