Inside Pigs
Germany sees pig sales falling
After South Korea stopped importing German pork due to an ASF outbreak, it was feared that China and Japan would also suspend their imports. China has indeed stopped its pork imports from Germany and the Philippines is also imposing an import ban on German pork.
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The Chinese Ministry of Agriculture and Chinese Customs announced on Saturday (September 12) that direct and indirect imports of pork products from Germany will be banned. The Philippines is also suspending imports from Germany from today (September 14).
In the meantime, discussions are being held to reach a regionalization agreement. The aim of the talks is to distinguish between infected and non-infected areas so that exports to China from ASF-free parts of Germany are still allowed. This construction already applies to the European market.
With the export ban to China, concerns in Germany are increasing. Joachim Rukwied, the chairman of the German Farmers' Association, expresses his concerns: "China is our most important export market for pork outside Europe. Especially for pork that is hardly consumed in Europe." According to Rukwied, it should be possible for pork to continue to be supplied from ASF-free areas.
Protection measures
Germany already had a package of emergency measures in place that allowed for rapid action. The installation of an electric fence was completed on Saturday. This fence, with a length of 12 kilometers, surrounds the area where the infected animal was found. In the meantime, the search for further infections continues. The German Minister of the Interior has promised that helicopters will be equipped with thermal imaging cameras to assist in the search.
European pig market in dire straits
The German infection is hitting the pig market hard. On Friday (September 11), the German pig price fell sharply. The expectation is that the end of the price drop is not yet in sight. The chairman of the German Farmers' Association therefore calls on all those involved in the food chain to provide help to pig farmers in this crisis situation.
European consequences
Although Germany is still allowed to export from ASF-free zones within Europe, the situation also has major consequences for the European pig market. Now that Germany is no longer allowed to export to its largest buyer, China, the European market will have to deal with an oversupply of German pork, which will also affect European pig prices.
As a result, the Dutch and Belgian pig markets, among others, are coming under increasing pressure. The oversupply on the German market undoubtedly affects Belgian and Dutch export opportunities. As a result, supply will also increase in the Netherlands and Belgium, which will further increase pressure on prices. Perhaps the Netherlands can increase exports to China, but this does not apply to Belgium, which has not yet received its export permit after the African swine fever appeared in the country in 2018.