JAPAN - Porcine Epidemic Diarrhea virus (PEDV) continued to constrain Japanese and North American pork production in the first half of 2014, leading Japanese pork processors to import large volumes of frozen pork to secure supplies and hedge against further price increases.
In addition to North American products, Japanese importers accelerated their supply diversification, buying significantly larger volumes of EU pork, and nearly triggered the pork special safeguard (SSG).
Japanese pork consumption in the first half of 2014 was flat, though as beef prices are projected to climb still higher, consumers may buy more pork in 2015 despite higher prices.
As Japanese production recovers from PEDV and frozen stocks work their way through the market, Japanese pork imports are expected to fall in 2015.
However, as Japanese and North American production begins to recover from the worst effects of PEDV, Russia’s import ban on EU pork may reinforce patterns that emerged as a result of PEDV as EU producers seek buyers for their additional exportable supply through summer 2015.
You can view the USDA GAIN: Japan Livestock and Products Annual 2014 report by clicking here.
ThePigSite News Desk