China’s imports expected to pick up
German bacon and cull sow prices which have a big bearing on EU pig prices held steady over the past week.
In another bit of good news on the export front, the lucrative UK market, where prices are falling (shedding another 1.05p last week) but are still nearly 20% above German prices, saw volume sales of fresh and frozen pork up 3% on the previous year for the 12 weeks ended October 8. This was the first year-on-year growth in the UK’s fresh pork sales recorded for a 12-week period, in more than 12 months. And with a 7% rise in average retail prices, expenditure on pork was 10% higher than year earlier levels during the period. Despite the substantial decline in China’s imports in recent months, which creates a risk of over-supplied global markets, China’s imports are expected to pick up somewhat over the rest of the year. Pork imports fell 27% in the first eight months, hitting the EU hard because rising European prices reduced competitiveness.
Like the EU, the US has been affected by the decline in Chinese demand for imported pork this year.
Volumes from the US destined for China were back 47% year-on-year during the third quarter of this year, declining to just 19.3 thousand tonnes.