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China hits Vion hardest with pork tariffs
China will impose substantial import duties on pork from the European Union. The Chinese Ministry of Commerce announced this today (Friday, September 5). The tariffs are the result of a long-running anti-dumping investigation by Chinese authorities. Among Dutch pig slaughterhouses, Vion will face the highest tariff.
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The anti-dumping investigation began in June 2024. The Chinese ministry's publication shows that Vion is facing the highest tariffs among Dutch slaughterhouses.
China has differentiated between companies that cooperated with the anti-dumping investigation in the past period and those that did not. A 62,4% tariff will apply to companies not on the lists provided by the Ministry of Commerce. All major Dutch processors are on the list and will face lower tariffs.
Lower rates for Westfort, Compaxo and Van Rooi Meat
Imported meat from Vion locations in Boxtel, Groenlo, and Apeldoorn will be subject to a 32,7% tariff. Westfort, Compaxo, and Van Rooi Meat are also on the list and will face tariffs of 20%. Danish Crown will face tariffs of up to 31,3%. The tariffs will take effect on September 10th.
European pork producers managed to slightly increase their export volumes this year after years of decline. Up to and including June, 2,13 million tons of pork and by-products were shipped to China. This is 1,7% more than the same period last year.
Uncertainty has been reduced
Industry insiders indicate they are still studying what was published today and what the implications might be. Whether this will impact prices remains to be seen next week. However, it is certain that it will ultimately cost margins. It is also not entirely clear whether the tariffs will also apply to meat that is already in transit, for example.
Incidentally, it is also indicated that the fact that there is now clarity is a positive development. The results and potential consequences of the anti-dumping investigation also caused uncertainty among importers, something that never has a positive effect in trade.
Today's publication also states that the measures are "temporary." What exactly this means is unclear, but according to those involved, it "may offer opportunities for industry organizations and politicians to discuss the rates and work towards the most favorable solution possible for all parties in the sector."