June 27, 2017

'Export demand props up EU pig meat market'

Amid falling consumer demand for pig meat in key EU markets, export demand is doing the job of supporting the EU market, the pork division of the UK Agriculture & Horticulture Development Board said.

AHDB Pork said that fresh pork has been under the greatest pressure. "What is happening to domestic demand in supporting the EU pig meat market in the coming months could be crucial as EU export markets are becoming more competitive", it said.

In the key German pig meat market, household fresh purchases have declined yet again in the first four months, by 7% compared with the same period last year. The pork price rise, at 4%, was considerably higher than for other meats.

In France and Italy, household purchases of fresh pork also continued to decline. In contrast in Spain, pork is performing better than in other main consuming countries. This has been helped by the recovery in the economy, according to AHDB Pork.

UK household purchases of fresh pork in the first four months were also down. However, up to April 23, they only fell by 1.5%, a considerable improvement on the situation last year, AHDB Pork said.

It said that a good level of internal demand becomes more critical if pig production is to remain profitable and the pig meat market stay afloat. "The increasing retail pig meat prices will inevitably meet consumer resistance at some stage. Falling pig prices would inevitably have consequences not only for the EU as a whole but also the United Kingdom", it further said.