December 17, 2019

 

British pork exporters anticipate increased sales to China in 2020

 

Exporters from the United Kingdom have projected boosted sales to China next year as the latter is still managing an African swine fever (ASF) outbreak, reported CNBC.

 

Chinese authorities said measures to stabilise prices of pork in the country are effective. China has increased trade deals to boost import levels and drawn down on frozen pork inventories.

 

Between January to August 2019, the UK exported more than 45,000 tonnes of pork to China, double the volumes exported in 2018 according to industry press. China is the biggest consumer of pork from the UK.

 

Six new UK plants exporting pig trotters have been approved by Chinese authorities for export in the last few months.

 

Tulip, the UK's biggest swine producer hit more than £1 billion ($1.34 billion) in total revenue annually. Tulip exports swine heads, trotters, hind feet, offal, back and shoulder to China.

 

Andrew Saunders, Tulip agricultural director said abattoirs that export swine to China reported a rise in sales of about 80% year on year. He expected high prices to continue into the next year.

 

Cranswick, another UK swine producer reported a six-month revenue of 7.1% attributed to strong performance in its Far East export markets. The company said the ASF outbreak has provided an opportunity to boost sales to that region on commercially favourable terms.

 

Demand for pork in China is set to rise in late January with the upcoming Lunar New Year celebrations.

 

Rabobank commodity specialists said consumers in China are prepared to avoid pork if prices became too expensive. Pork consumption has fallen by 10% to 15% in 2019 because of food safety concerns.

 

Rabobank also said canteens in schools and factories in China have opted for poultry, with a 44% rise reported for chicken breast meat prices year-on-year in May. It projected reduced pork production next year, but expects growth for beef and chicken production.

 

-      CNBC