Pork exports from the European Union are expected to be 12% higher than last year by the end of the year. A comparable export level is expected for 2020. This is apparent from a recent publication by the European Commission.
The spread of African swine fever (ASF) in China is investigation report as the main driver of export growth. As a result, the pig population in China has shrunk considerably and a gap has arisen between the production and consumption of pork in the country. This cannot be absorbed by import in the short term.
Experts estimate China's pork production will fall from 20 to 35% in 2019, which would double the global pork trade. ASF is also spreading in other Asian countries, including Vietnam and Cambodia. Consumers will partly define their meat consumption differently, especially with poultry meat.
Export to China is growing strongly
In the first four months of 2019, EU pork exports to China grew 37% compared to the same period last year. This means China has a share of 43% in total exports. Exports to Vietnam have almost doubled to a share of 2%. Total EU exports of pork grew by 17% and offal by 6%. Total exports of pork from the EU are expected to be 2019% higher by the end of 12 and that export growth will be sustained in 2020.
Production does not grow
Despite increasing world demand for pork and rising prices, production in the EU declined. In the first quarter of 2019, there was a 0,7% decrease compared to the previous year. Of the main pork producing countries, only Spain has increased production. Production decreased significantly in Germany, the Netherlands and Poland. The EU pork supply is expected to remain stable this year and to grow moderately next year at around 1,4%.
Prices for both pork and piglets have risen sharply since mid-March and have reached the high level of 2017. Due to higher pork prices, European consumption per capita is expected to fall by 0,5 kg in 2019 (to 32,1 kg).
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.