Background Coronavirus
Corona makes slaughterers and FrieslandCampina insecure
China is in the grip of the Coronavirus. Several large cities are locked and mouth caps cannot be dragged on. The situation is also being closely monitored outside of China. How do Dutch slaughterhouses and FrieslandCampina view the outbreaks of the virus in this important sales market for them?
What started in early 2020 with an outbreak at a cattle market in the city of Wuhan has turned into a real crisis. Meanwhile, the death toll has risen to 170 and nearly 8.000 people have been infected, Chinese authorities said. The World Health Organization (WHO) is meeting today, January 30, whether to declare an international emergency.
Almost all of China is on its ass. Cities are almost extinct and many people stay at home as a precaution. The holidays around the Chinese New Year, which took place last weekend, have been extended by a week. The question is whether agricultural exports, such as pork and dairy, will be affected. For the time being, there is mainly uncertainty, according to a tour.
'Don't panic yet'
According to Addy van Rooi, director at Van Rooi Meat, Chinese demand was already at a low ebb because of the celebration of the Chinese New Year. The European cold stores are therefore full of meat and everyone is waiting for China to re-enter the market. Still, he's not panicking. "Apart from the Coronavirus, we had already calculated that Chinese demand would still be tame. Historically, it will take a few weeks for China to start importing pork again." He does think that the Corona virus may disrupt exports if the normal rhythm of life in China does not get going quickly. "However, apart from the Corona virus, I am positive about the sales opportunities in China."
David van Someren, meat seller at Compaxo Zevenaar, also speaks of uncertainty. "When the cities are locked down for a long time, it becomes logistically difficult to ship pork. For us it is extra difficult that we have to think 6 to 7 weeks ahead, because the containers are on their way for that long. Imagine that can't be released, then you obviously have a big problem."
Also Vion is in uncertainty, it was announced at the beginning of the week. The slaughterhouse is encountering logistical problems due to the closure of cities. The Chinese importers are adopting a wait-and-see attitude, which puts a brake on pork exports.
Travel ban at FrieslandCampina
Jan Willem ter Avest, spokesman at FrieslandCampina, talks about looking for coffee grounds in this uncertain situation. "In view of the celebration of the Chinese New Year, we have adjusted the supply, as is customary in other years." He cannot estimate whether dairy exports will be affected in the longer term.
FrieslandCampina has already taken measures internally. For example, as a precaution, employees no longer travel to China. This travel ban does not only apply to Dutch staff, but also to employees in the surrounding Asian countries. "Furthermore, we follow the orders of the Chinese authorities for the activities we do on site."
Wouter Job
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