Dutch pig export fat buyer in China

Of all major European exporters, the largest percentage gain in the first 3 months of this year was achieved by the Netherlands. Pork sales in the Netherlands increased by 24,1% to 24.960 tons. In addition, sales of by-products showed an increase of 5% to 26.305 tons.

Total Chinese pork imports rose by 3,2% to 334.259 tonnes in the first quarter of this year. However, the import of by-products recorded a minus of 20,8% to 214.991 tons. This means that the Netherlands is doing better than the market. 

Germany and Denmark
What is striking is that other major European exporters (such as Germany and Denmark) actually saw sales decline. It should be noted that Chinese demand only started in March and that the first 2 months were still relatively weak. Another cause of the decline in the country is the declining number of slaughters, which simply means less meat is available.

Outside Europe, Canada and Brazil in particular are benefiting from the increase in demand from China. Pig exports from the United States have been severely curtailed by the trade war the country is fighting with China. There are signals that white smoke about an agreement is on the way, but that is not the case yet. Due to the decline, the Netherlands has surpassed the United States in terms of sales volume in China. 

Disrupted trading relationship
Canadian pig exports are now threatened because the country has a diplomatic conflict with China. In December, Canada (at the request of neighboring America) arrested the CFO of telecom giant Huawei; According to the Americans, the company is a spider in the web of Chinese espionage practices. Huawei is said to have violated the American trade boycott with Iran.

China is outraged by this action by Canada and is therefore threatening to stop the export of a huge number of agricultural commodities, including pork. Meanwhile, the import of Canadian rapeseed has already partly come to a standstill. The official Chinese explanation is that the shiploads contained too many vermin.

Canadian pork is also blocked by Chinese customs because the paperwork is allegedly not in order. Several analysts know better and regard the Chinese statements as a fallacy. In their eyes, it is an act of retaliation for the arrest of Huawei's CEO.