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Brussels foresees a sharp drop in pork exports

12 October 2020 - Redactie Boerenbusiness - 5 comments

The European Union is forecasting a 2021% decline in pork exports for 10. This is apparent from the European Commission's autumn report on developments in the agricultural markets.

The significantly lower estimate for the export of European pork in 2021 is partly due to the outbreak of African swine fever in East Germany. The growing Chinese pig population and the production of pork in 2021 also contribute to the reduced export. In addition, the consumption pattern in China is shifting. Due to the problems with African swine fever in pig farming in recent years, the Chinese pig herd has been cleaned up.

Opportunities through regionalization
Much will depend on the effectiveness with which Germany manages to fight the ASF outbreak. Just as important is the willingness of trading partners to accept regionalization of the European pig market, writes the EU directorate of the European Commission. As a result, Spain, Denmark and the Netherlands may be able to partly take over the lost German pork export.

Over the whole of 2020, pork exports will grow by 2% compared to last year. The contrast between the first and second half of the year is great. The effect of the African swine fever outbreak in East Germany remains limited because in the first half of 2020, an extra 15% was exported, compared to the same period last year. This was due to increased demand from the Philippines and the United States, as well as unprecedented export volumes to China. 

No rapid shrinkage in production
The agri-directorate of the European Commission does not yet assume a rapid contraction in European pork production. EU production decreased by 2020% in the first half of 0,9. Volume decreased in Germany, France, Italy and Poland, but pork production increased in the first half of 2020 in Denmark and Spain. These countries have expanded their pig herds. This was also the case in Ireland.

Total EU pork production picked up again in the third quarter, reflecting favorable prices, the return of consumer demand after the corona pandemic and the return on investment. A 2021% increase in pork consumption in the European Union is expected in 1. Over the whole of 2020, consumption in the EU is likely to fall by 1%. On average, more than 30 kilograms of meat per year is consumed in the European Union per capita.

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Comments
5 comments
13 October 2020
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/varkens/ artikel/10889633/brussel-voorzit-forse-exportdaling-porkvlees]Brussels foresees a sharp decline in pork exports[/url]
Pig farmers participating in the warm remediation have chosen a good moment. We will never again experience the combination of the high prices that we have experienced due to avp in China and a warm remediation.
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champion 14 October 2020
read article?? due to avp in Germany less export!! they no longer have an export license, that's why.
14 October 2020
Yes and in particular I have read the report of the European Commission, the biggest threat is the repopulation of the Chinese pig farms.

Even without AVP in Germany, exports will fall;
"Export growth (set to -10% in 2021) would not have continued even without an ASF outbreak in DE." "the unprecedented exports to China in 2020 would not have increased further, as China
may start to recover its own production and continue to diversify consumption of (imported) meat."

Agree with you that the current price drop is due to avp in Germany. And that in turn has to do with the fact that not enough meat can be frozen for export outside the eu. "The bottleneck that limits exports outside the EU is the freezing capacity. In all of Europe 101% of the freezing capacity is already used, ergo it is impossible to freeze more. The void left by Germany cannot be filled by other Member States (which would help to decongest)." The meat trade was and is not prepared or does not feel the need to guarantee sales opportunities, the failure costs of this end up with the farmer. Otherwise we would have been able to take advantage of avp in China for a while.
V23 14 October 2020
I also think that the lack of freezing capacity is the main cause of the price drop/pressure on the market.
Despite the warnings, it seems that the meat trade/slaughterhouses were not prepared for the arrival of AVP in Europe.

It will also not be easy to create more freezing capacity within two years. However, the parties have in any case chosen to seek the solution in substantial price reductions on the purchasing side. Failure costs of the chain are returned to the farmer. After all, you expect more from parties that claim to create added value for the farmer, who say that they are indispensable for the sale of our meat and act as if they guarantee the sale. It's more like they're just bobbing along on the waves of the market.
If the Netherlands wants to become an important player in the pig market again, something has to change. Normally we could have benefited from the demand for meat from China for a while.
Jan 18 October 2020
Slaughterhouses and the meat trade fail to guarantee meat sales. No added value for the farmer. But if they can pass on the failure costs to the farmer, what is the need for these parties to guarantee sales / to provide added value for the farmer. They only function as conduit/ "box pushers". Block to the leg! They will still have to work hard to switch to a value-adding link, the rudder has to change, that transition will have to be made by more chain partners.
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