Inside Pigs
Brexit increases Chinese share in Danish exports
Brexit has caused shifts in Danish pork export flows. The export volume to the United Kingdom has dropped considerably. In the first months of the year, the Danes still benefited from strong Chinese demand for pork.
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De Pig herds in Denmark have been growing strongly for some time now to see. This increases the amount of pork produced, which the largely self-sufficient country must sell on export markets. Total exports increased due to increasing exports to Asian countries. Exports to the United Kingdom, which has always been an important destination for the Danes, are taking a serious hit.
Line 2020 continued
After the Danes already managed to increase the export volume in 2020, this trend is now being continued. The total exported volume in the first quarter of 2021 was 550.540 tons. This is an increase of 11,2% compared to the first quarter of 2020. This quantity includes the country's total pork exports, including by-products and live animals (converted to carcass weight). The export of live animals showed a decline (-8,4% to 103.450 tons). Meat exports increased by 17% to 447.000 tons.
The fact that export volumes continued to grow despite the adverse consequences of Brexit was mainly due to China's purchasing appetite. The amount of pork exported to the Asian country increased by 20% to 168.930 tons. Sales to South Korea (+267%) and the Philippines (+200%) were also significantly higher. A total of 291.450 tonnes were sold outside the EU.
Germany most important European customer
Within Europe, Germany remained the main buyer of Danish pork and live pigs. The total amount of exported product (meat and live pigs) decreased by 11,5%. This was mainly caused by lower exports of live pigs. Of the total exports to Germany, 46% consists of live animals. A plus was achieved in sales to Poland (+2%) to 73.680 tons and Italy (+34,6%) to 37.020 tons. Exports to the United Kingdom were 18,9% lower. Total exports to the country amounted to 37.590 tons in the first quarter of this year.
Denmark's total export dependence on countries in Asia has clearly increased. With the recent decline in Chinese demand for pork, it will become clear in the coming quarters whether volumes can be maintained. Danish pig prices, like many other European prices, fell sharply last week. The price for slaughtered pigs was adjusted downwards by €0,08 to €1,52 per kilo.