Inside Pigs
Canada and US working on AVP trade protocol
The United States and Canada are coming up with a new trade protocol to halt the trade in pig products only briefly if African swine fever (ASF) occurs in the wild boar population. How is the Canadian pork trade progressing and what are the expectations for this year?
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If either country discovers ASF in wild boars, a new trade protocol will come into effect. According to the protocol, trade between the two countries will be halted as soon as ASF is discovered in wild boars. But when affected areas are demarcated and outbreaks are under control, trade restrictions are reduced to the regionalization principle. This means that pork can be exported from ASF-free areas again.
The trade in pig (meat) between neighboring countries is of great importance. Canada is still working to reduce the oversupply of pigs ready for slaughter caused by the corona crisis. According to recent estimates, more than 100.000 pigs are still hanging over the market in Eastern Canada due to the loss of slaughter capacity due to the corona crisis. This is expected to further stimulate the export of pigs ready for slaughter in the first half of 2021.
pork export
China is also a major buyer of Canadian pork. Total pork exports grew by 20% last year, and exports to China more than doubled. This was at the expense of volumes to other countries, as stated in the recent analysis by the US Department of Agriculture (USDA).
It remains to be seen whether export volumes to China can continue this year. There are currently no fewer than 8 slaughterhouses that are faced with an export ban to China due to corona-related problems.
It is estimated that approximately 2/3 of export volumes are currently affected by the temporary Chinese import ban. Regaining access to the Chinese market is important for overall export volumes. In order to fill the gap in export volumes until then, Canada is trying to increase pork exports to countries to which less was exported due to growing Chinese demand.