AHDB Pork Weekly Export Bulletin
21 November 2016
Limited supplies of pork for export translated to stable shipments to China during September. Exports to the Netherlands, Denmark and Hong Kong, likely for re-export, fell back more than 20%. Offal exports, led by a decline of shipment to China, were also down 14%. There was a 12% rise in UK pork exported to Germany, reflecting the increase in sow slaughtering during September. Despite lower shipments, pork exports are up 16% year-on-year to £21.7m in September.
Once again, China dominates the news with the momentous announcement by Danish Crown of its investment of €43.9m in a cutting and retail packing plant in Shanghai. This news is very welcome, as on one hand, it confirms the rise of value added pork products to China from Danish owned factories, including the UK. And on the other, it indicates a long-term commitment of the People’s Republic of China for importing pork, without which, this new plant could not be built. Danish Crown already has a strong commercial and marketing structure in Mainland China and is the recipient of a large EU co-funded pork promotion programme.
AHDB Pork participated in Food & Hotel China (FHC) (7-9 November) in Shanghai and Anufood in Beijing (16-18 November). FHC was very successful but trade is somewhat back from last year. All companies reported good engagement with existing suppliers and good meetings with new ones. The feedback is that presence on the stand and product samples helped cement some new business. FHC was much more competitive than last year, with more countries present and a big push from Canada Pork. British turnout was also high at Anufood. However, the show was uneven, with the large attendance on day 1 not matched by day 2 and 3.
One striking comment on Brexit and the EU from Josef Efken of Thünen Institut, at the German Meat Congress was: “International meat trade needs corporate development, open markets, stability and the rule of Law”.
The European Commission has been trying to ascertain the cumulative impact on the agricultural sectors of the 12 trade agreements on agriculture currently under negotiation. Significant gains are predicted for the pork and dairy sectors and losses are forecast for the European beef sector. For pork, this would mean a price rise of 3% and a production increase of 1%.
The British Pig Association, sponsored by AHDB Pork, will hold high level talks next week with the Punjab government and we will attend two agricultural exhibitions to support our project and hopefully over the next two weeks, sign the Memorandum of Understanding between the British pork sector and the Punjab.
AHDB Pork and the British Pig Association had a small presence on the British Livestock stand at Eurotier (15-18 November, Hanover), the largest livestock exhibition in the world.
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