ccg

China’s Demand for Pork Rises; the UK Enters as the Biggest Supplier

China’s imports of pork from other countries are likely to increase with the aim to stabilize the high demand and the short supply for the domestic needs. The UK pork producers are expecting to raise their supply as the Chinese piggy farms had been severely affected by the African Swine Fever (ASF) that killed pigs widely across China.

Declining Pork Consumption in China

With this sever impact of ASF in China, it is expected that the Chinese producers may not be able to satisfy the pork demand for the domestic needs in 2020. Pork has been the Chinese’ most popular meat and the country is likely to increase its pork import till the next year.

Generally, the demands for pork increases tremendously in the month of January because of the Lunar New Year celebration in China. However, there is a fear among the people as the country has no sufficient stock for the needs of people for the next year.

Rabobank officials stated, “The Chinese consumer was prepared to avoid pork if the prices were too high. Chinese pork consumption had dropped by 10% to 15% in June 2019 and continued declining across 2019 due to food safety concerns related to ASF.”

As a result of the ASF-related issues, the prices of healthy frozen pork and hog prices increased and people started looking for the other meats. Rabobank officials continued, “Chinese canteens at schools or factories had switched to poultry and chicken breast meat prices had risen by 44% year on year by May 2019. The bank forecasts that for 2020, there will be less pork produced but other markets such as beef and chicken will grow.”

As reported by a media, “The ASF impact in China would help the Far East export markets as it had created the opportunity to increase sales into this region on the commercially favorable terms.”

The UK Emerging the Biggest Supplier in China

As Beijing authorities reported on Monday, December 16, 2019, “The efforts to stabilize prices have achieved results. China has been drawing down on its frozen pork inventories as well as fast-tracking trade deals to raise the level of imports.”

The UK pig producers are likely to fill the existing shortage of pork supply in China. According to a Chinese industry press, “In the first eight months of 2019, Britain shipped more than 45,000 metric tons of pork to China which was almost double the 2018 volumes.”

The press continued, “In the last few months, six new U.K. plants have approved to export pig trotters to China.” With this new development, the UK will be the biggest supplier of pork for China.

Tulip, the biggest pork producer in the UK, has been supplying pork in China for over many years and could generate total revenue of more than $ 1.34 billion each year. Andrew Saunders, the Agricultural Director at Tulip, commented, “Its abattoirs that export to China have had an increase in sales of around 80% year on year.”

Saunders continued, “Chinese demand for pork growth had been happening since August 2018 and China had now witnessed a 25% reduction of its domestic pork production due to ASF.” Saunders explained that the export of pork to China would continue till the next year.

I’m Roshan, a journalist, blogger and music lover. I like covering global news related to finance, business, and technology. Focusing on the collection of true and reliable information, I rely on working by conducting interviews with business leaders and talking to the inside sources of companies.

You can reach out to me at: [email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *