Spanish pork industry barely keeps up with exports
Spain has increased pork exports by 9.2% in the first seven months of this year compared to the same period of 2018 due to strong demand from China. "The Spanish market is in a totally unusual situation at this time of year. We find a price of € 1,451 / kg live and weighing 110.53 kg live and 85.77 kg carcass, both the highest of the last 5 years in this week of October," reported Mercedes Vega, General Director for Spain, Italy and Portugal, Genesus Inc.
The weight of processing is significantly higher due to demand and because the producer is interested in optimizing its costs by increasing the sales weights. All production that is not going to export to Asia, stays in the EU at prices that do not help the industry to recover sales margins as usual in previous years. In the first seven months of the year, exports have increased by 9.2% compared with 2018, (1,119,583 tons in 2018 vs.1,222,188 tons in 2019), she mentioned in the report.
Export to Asia has increased from 32.75% (2018) to 38.40% (2019) of total exports. Exports to China lead the way with an increase from 15.80% (198,424 tons in 2018) to 22.4% (306,645 tons in 2019) from total exports.
"The increase in pork exports is driven by two very important factors:
1. The packing plant of the Pini Group has started operating in August, absorbing part of the production.
2. The number of packing plants allowed to export to China has increased. Currently, there are 35 certified plants," added Mrs. Vega. Nevertheless, Spanish pork exports are expected to remain at this level for a while due to the fact that freezing capacity has been reached.
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