The UK still works on figuring out the international pork trade
For the first two months of the year, UK saw no growth in pig meat exports, despite the fact that Germany, one of the largest pig producers in the EU, has been banned in several third-markets due to an ASF outbreak in wild boars population. There were benefits gained by Spain and some other countries but none for the UK, concluded Stuart Ashworth, QMS Chief Economist, in one of his markets reports.
Focusing on the value of the export market and trade opportunities, Mr Ashworth said that although the UK is around 66% self-sufficient in pig meat and pig meat products, there are some cuts with limited UK demand meaning exports continue to play a key part in maximising carcase revenue for pig meat processors, just as the price of imported product does.
“The pig meat sector provides an interesting case study for the significance of international trade and the terms and conditions on which they take place. This includes the measures taken internationally at the border to protect animal health and food safety, and how they impact not only on farmgate prices but productive capacity,” said Mr. Ashworth.
Incursion of disease can significantly destabilise the marketplace and border control measures to prevent, or reduce, the risk of a disease incursion are a key component to minimising the public and private cost of controlling a disease outbreak.
“It has been well documented how measures taken to control African Swine Fever (ASF) have devastated the sow herd in China and, to a lesser extent, in several European countries. For example, compared to 5 years ago, Romania reports a 14% smaller sow herd and Poland a 5% decline. Measures taken to control animal disease locally can significantly impact on trade, again as the global pig market shows. The reduction in the sow herd in China resulted in significant growth in import demand from there. For example, the UK and the EU nearly tripled exports to China between 2018 and 2020,” continued Mr. Ashworth.
The global pork sector illustrates the challenge, with recent reporting of ASF in Germany resulting in China banning imports of German pork and temporary closure of some pig processing plants due to Covid-19 controls in the UK led to the removal of approved supplier status by China for those plants.
“The consequence of restrictions on individual sites is to compromise their competitiveness with plants still able to trade with China. So, while the EU reported a 30% growth in pig meat exports to China during January and February compared to the same period last year, with Spain gaining at Germany’s expense; the UK saw no growth at all,” he added.
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