China accounts for nearly 50 per cent of global production and consumption of pig meat. However, given the scale of the industry, small production changes can have a significant impact on price. During summer of last year, Chinese pig meat prices rose to record highs. Since then, there has been a steady fall in prices.

According to the AHDB European Market Survey for 23 March, pig meat prices in China are now less than 5 per cent higher than their level a year ago.

Some of the major factors contributing to falling prices in China is the expansion of the Chinese pig herd as a result of improved profitability, government subsidies and warmer weather, which led to a lower incidence of disease outbreaks this winter.

The Chinese government has recently released its 12th five-year plan for agricultural development. The plan aims to increase Chinese pig meat production by six per cent by 2015. It also sets out goals to modernise the industry and improve productivity.

2011 witnessed a contrast in Dutch and Danish pig meat exports. While Danish exports of fresh and frozen pork were five per cent higher in 2011 than the previous year at over 1.2 million tonnes, Dutch exports of fresh and frozen pork fell marginally in 2011, compared with 2010, despite a rise of two per cent in production.

The growth in Danish exports emulates an increase in pork production over the same period and some an increase in export demand. Trade with other member states of the EU rose by three per cent year on year. Shipments to non-EU states rose by 10 per cent but still only accounted for 29 per cent of trade.

Dutch pig meat trade with other EU member states dropped by 4 per cent year on year, whereas exports to non-EU markets increased by 20 per cent to make up 17 per cent of the total. The average export price increased six per cent year on year. By value, Dutch exports to non-EU markets increased by 30 per cent.

Further Reading

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