Bord Bia looks at cashing in on Asian swine fever crisis
Food agency commissions research as disease hits Chinese production, writes Samantha McCaughren
BORD Bia is commissioning research into the opportunities for Irish pig meat in Asia, as several countries in the region are hit by African swine fever. The disease is endemic in China at the moment, with production falling from 54 million tonnes to around 36 million tonnes, while it has spread to a number of nearby countries.
Peter Duggan from Bord Bia’s meat division said that the agency wanted to identify the opportunity in five countries — Vietnam, Laos, Cambodia, Thailand and Myanmar.
The disease has not yet reached Thailand, but the country is not expected to escape it.
“With African swine fever, it is going to take a long time for these countries to recover,” said Duggan. “There is no vaccine available, and a lot of the leading analysts expect that production will be impacted in the region of 30pc to 50pc in those markets.”
There are around 400 producers of pig meat in Ireland. “There will be ongoing opportunities,” said Duggan. He said that they may well be niche opportunities.
Ireland produces 300,000 tonnes of pig meat. Production has been increasing due to productivity gains. However, producers are cautious about expanding too much, despite significant increases in pig meat prices.
“There is a lot of debt involved if you are going to build on to units. Building new units or piggeries is quite expensive,” said Duggan.
African swine fever is already in eastern Europe, with fears growing that it could reach west European production.
Traditionally, the domestic market consumes 50pc of the pig meat produced in Ireland.
Cuts not consumed here, such as offal or pork belly, are often exported outside the EU to so-called third markets. Other countries in Europe are also looking into the opportunities in Asia. However,
Duggan said that Ireland’s island status could give it an advantage.
He added: “In terms of the disease risk, we would have a lower exposure. In terms of having confidence in getting a consistent supply of pig meat, customers in Asia would have that reassurance.”
Bord Bia recently issued a tender for research into the markets on behalf of producers.
“There is going to be a lot of supply chain mapping and understanding how these particular markets operate,” Duggan said.