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EU Capitalises on Tightening of Chinese Pig Supplies

28 January 2016, at 6:00am

CHINA - During 2015, much of the global pig market has been experiencing low pig prices and a plentiful supply, bolstered by improved efficiencies and a low feed price.

The opposite has been true in China, which experienced a significant drop in its breeding sow herd, in turn leading to a tightening of supplies and an increase in the pig price.

With demand for pork outstripping domestic supplies, export opportunities were evident to the Chinese market.

From April 2015 onwards, the wholesale pig price rose steadily, greatly exceeding levels seen in 2013 and 2014.

Imports to China grew significantly during 2015, bolstered by the increase in EU imports – accounting for 74 per cent of all imported pork.

EU pork was attractive due to the weak euro and the glut of supply, exacerbated by the trade ban imposed by Russia. But will this strong demand for imported pork continue?

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