Tuesday, June 18, 2024

European pork industry on edge

Europe's pork industry faces a "nightmare scenario" of lower prices and falling profitability if China restricts imports from the region, industry executives and analysts said Friday.

Reuters news agency reports that Chinese firms have asked for an anti-dumping probe into pork imports from the European Union.

The risk comes after Europe imposed anti-subsidy duties on Chinese-made electric vehicles.

China imported $6 billion worth of pork, including offal, in 2023 and more than half came from Europe.

"The full suspension of EU pork exports to China would be a potential nightmare scenario for the pork supply chain, with implications across the EU," said Justin Sherrard, global strategist for animal protein for Rabobank.

China buys ears, noses and feet, for which there is little demand from European customers. 

"It would take time, but may be possible for EU exporters to find alternative markets for the pork muscle meat cuts that are currently shipped to China," Sherrard said.

"However, I doubt alternative markets could be found for EU pork 'variety meat' exports that are currently shipped to China.

Spain is the largest exporter of pork to China globally, selling about $1.5 billion of product every year.

China has been able to ramp up its own pork production following a disastrous outbreak of African Swine Fever in 2018 and recently there has been a surplus of pork in the country.