June 17, 2022

Pork from Spain sees rising demand domestically and overseas, as output increases

Pork from Spain sees rising demand domestically and overseas, even as exports to China have declined, as swine production in the country totalled over 5 million tonnes in 2021, compared to less than 3.5 million tonnes ten years ago, the UK Agriculture and Horticulture Development Board reported.

Even with widespread challenges in rapidly rising production costs, production has increased so far this year, but a slight seasonal downturn in clean swine availability is expected.

It's possible to get an indication of changes in supplies available for consumption on the domestic market by adding together production and imports (of which there are very few) and subtracting export volumes (including changes in frozen stocks).

Based on Spain's swine production, import, and export data, there was increased domestic consumption of Spanish pork in the six months leading up to March, despite reports that pork in stores remain plentiful.

Spain has been at the forefront of the recent rapid rise in European pig prices, as Spanish abattoirs have fiercely competed for swine. In these circumstances, we would also anticipate a draw on frozen inventory.

Since the volume of exports to China has decreased, one notable feature of Spanish exports is that they appear to have become much more diverse. While the top 20 destinations still accounted for around 90% of total exports in March 22, as they did a year ago, most markets have recently taken a greater and more equal share of total exports.

Trade with Italy, Poland, South Korea, Japan, and the Philippines has grown significantly. In March 2022, the UK imported 6,000 tonnes of Spanish pork, up from 3,000 tonnes the previous year.

Overall export volumes are lower, at 1.24 million tonnes in the six months to March 2022 compared to 1.33 million tonnes in the same period last year. However, the UK Agriculture and Horticulture Development Board said that Spanish exporters have clearly been working hard to find export markets for pork that was possibly intended for the Chinese market.

-      UK Agriculture and Horticulture Development Board