While the European and domestic pig meat markets remain difficult, pig prices and demand in many international markets have increased dramatically over the past 18 months. In Euro terms, pig prices have increased strongly in exporting countries such as the US, Canada and Brazil on the back of a rising global demand for pork and the economic recovery of many of the larger importing nations such as Russia and Japan. This, combined with a depreciation of the Euro against the US dollar, has resulted in European pig meat being more competitive in international markets.

Total EU pig meat exports increased by 13 per cent or almost 400,000 tonnes in 2010. This growth has continued into early 2011, with export volumes for the first quarter ahead by 26 per cent with higher volumes shipped to all exports markets, with the exception of Australia. Almost half of exports consist of lower value products such as fats, lards and offals.

The greatest increase in shipments has been to South Korea following the destruction of one-third of the national herd due to an outbreak of foot and mouth disease (FMD). Recently, the South Korean authorities announced a doubling of the quantity of pork to be imported tax-free this year to 260,000 tonnes, in an effort to combat the 40 per cent increase in meat prices since January.

Russia is by far the most important export market for the EU accounting for almost one-third of EU exports with volumes 16 per cent higher in the first quarter. The Russian authorities announced that, from 15 June, all meat imports from three Brazilian states will be halted, providing further opportunities for EU exporters. The prospects of EU and Irish exports remain strong for the rest of the year.