June 8, 2017
Germany dislodged as China's biggest pork supplier
German pig meat exports to China suffered with the suspension in mid-February of the licenses of two major German processors, as reflected in export figures for February and March. The suspension of the licenses of Tönnies and Böseler Goldschmaus by China has since been restored, though.
German export data showed that shipments of pork to China were more than halved in February and March as the interruptions for the two companies took hold, according to AHDB Pork.
Trade was down from nearly 21,000 tonnes in January to 8,300 tonnes in February and 9,400 tonnes in March, although the reduction was not felt in China's import statistics until April.
Germany had been the largest supplier of fresh and frozen pork to China and was also the second-largest supplier of offal. But the suspension of the two export firms left Spain as China's largest supplier by volume (close to 21% of China's total pig meat imports in April), having overtaken Germany in March. However, the pork division of the UK Agriculture & Horticulture Development Board added, it would appear that the main beneficiary might have been Canada, as rapidly rising prices inside the EU have impaired other member states' competitiveness on the global market.
"Canada received a double boost from an interruption in German supplies and the reduced ability of other European nations to fill the gap, either through their lack of ability to respond on price, or a paucity of supplies for export", AHDB Pork said.
It noted that Canadian exporters were able to increase volumes to China to 20,300 tonnes in April, 64% more than the same month in 2016 and around 5,000 tonnes more than in March. "Overall Canada did not fully replace the lack of German product, as China took in less pork in April, as supplies also fell slightly from the US and Denmark".
AHDB Pork said the lifting of the restrictions should enable German trade to build up substantially again and improve market returns on the key German market, the largest in the EU.
