China dispute with EU creates turbulent time for pork trade
© Tim Scrivener An ongoing trade dispute between China and the EU is having a knock-on effect for pig producers throughout Europe and the UK.
EU pork exports to China have come under scrutiny and will be subject to a yearlong anti-dumping investigation by China’s Ministry of Commerce, in retaliation for duties being imposed on Chinese electric vehicles by the EU.
A spokesperson for the China’s Ministry of Commerce indicated on 20 June that the country could levy provisional anti-dumping tariffs on EU products.
See also: Red meat exports add billions to value of UK livestock
The investigation is due to cover both fresh and frozen pork as well as offal, and will focus on products intended for human consumption.
Rob Mutimer, chairman of the National Pig Association, said the pork trade dispute was undoubtedly a threat to the UK industry as well.
“If the EU are banned from exporting pork into China there will be an awful lot more pork on our market. We hope the situation is stable for another 12 months.”
China provides a crucial export market for both UK and EU pork, especially for fifth-quarter products.
About 13% of the EU’s total pork production is exported, predominantly to Asia, with China being the single largest export destination, according to the EU Commission.
The numbers
- 13%: Proportion of EU pork production exported
- 185.6p/kg: Equivalent EU grade E average deadweight pig price
- 6%: Fall in EU pork exports during first four months of 2024 compared with last year
Pig prices
Finished pig prices in the UK have remained stable over the past six months, with the EU-spec standard pig price (SPP) averaging 210.56p/kg last week.
Mr Mutimer said: “We’ve seen a relatively flat market. Disappointingly, prices are 10p below where they were this time last year.
“I think some of that might be the fact we have had a very poor demand due to the wet barbecue season so far.”
On the Continent, grade E deadweight pig prices dropped slightly this week to 220 euro cents/kg (185.6p/kg), leaving them 10.4% below the same time last year.
Izzy Shohet, red meat analyst at AHDB, said:
“Falls in EU production have limited export opportunities, as total pigmeat (including offal) exports have fallen by 6% from 2023 in the year to date [January to April], to sit at just over 1.3m tonnes.
“The majority of this decline has come from falling exports to China, which sat 83,000t lower in the first four months of 2024, to 363,000t.”
Sow prices have also fallen, reportedly due to legislation in the EU restricting sales of sow meat in supermarkets.
African swine fever
There have been 3,668 reported cases of African swine fever (ASF) in wild boar and 143 cases in domestic pigs in Europe so far this year, according to Defra’s latest outbreak assessment.
Germany recently reported its first case of ASF for the year in its domestic pig herd, resulting in local restrictions being imposed in the country.
Defra considers the chance of ASF entering Great Britain through live animals as a medium risk.
However, it considers the risk of ASF entering through human-mediated routes – via products of animal origin – as high.
The Pirbright Institute has been working with researchers to try to develop a safe and effective vaccine for ASF.