UK pig prices stay near 210p/kg despite global trade turmoil

Global pork exporters are battling to gain a foothold in the Chinese market following trade disruption between the EU and China.

Despite this, both EU and domestic prices remain steady.

The EU-spec standard pig price (SPP) lifted tentatively to 209.84p/kg deadweight in the week to 17 August.

Prices have remained within the same 3p/kg price range since January.

Meanwhile, the European price (grade S) remains largely unmoved so far during August at just over 187p/kg.

The gap to the equivalent UK reference price stands at 24p/kg.

See also: NFU joins calls for more government action on import controls

EU pork exports have traditionally targeted China.

However, ongoing trade disputes have left the EU looking at new markets.

They have also created opportunities for other exporters such as Russia and Brazil to capitalise on the Chinese market.

Russia began exporting to China earlier this year after several pork traders were approved for export.

Yuri Kovalyov, general director of Russia’s National Union of Pig Breeders, told global news agency Reuters: “For us, these trade tensions represent a chance to showcase our competitiveness in the Chinese market.”

Competing proteins

Pork exports to China face further challenges with increased competition from other proteins, an oversupplied market, and demographic shifts all having an impact.

A recent RaboResearch report suggested that companies would need to consider changes in the types of products being offered to meet the needs of consumers in China.

Chenjun Pan, senior animal protein analyst at RaboResearch, said: “The market is gradually moving away from pork towards poultry, beef, and seafood, which are favoured for their perceived health benefits.

“Additionally, the older generation’s adoption of e-commerce, food delivery, and convenience foods marks the end of past consumption behaviours.”

However, certain opportunities for pork exports do remain.

Figures from RaboResearch indicate that per capita meat consumption in China has doubled during the past 30 years to 72kg in 2023.

Shifting consumer demand

Pork exporters have been advised to focus on a “consumer-centric approach” rather than providing one-size-fits-all products in large volumes when supplying the Chinese market.

Ms Pan said: “Today’s consumers expect more than just a product.

“They seek a comprehensive value proposition that includes good service and valued experiences.”

“How to eat well instead of how to eat more has now become the focus of many Chinese consumers.”

As Farmers Weekly went to press midweek, reports were emerging that China also plans to investigate imported dairy products from the EU.

Ms Pan concluded: “These changes in China’s animal protein markets present a unique set of challenges and opportunities.

“Companies that adapt to these new consumption trends with agility and consumer focus are set to thrive in this dynamic environment.”