South Korean demand drives Chilean exports
In the first half of 2015, Chilean pork exports totalled 64,000 tonnes, up 17% on a year earlier to a record level with South Korea driving much of this increase.
The 69% increase to South Korea is linked to the depressed domestic production as the country is recovering from outbreaks of PEDv and FMD. Chilean exports to China increased by 20%, a result of the reduced breeding herd. In contrast exports to Japan have decreased by 29%, mainly due to the country recovering from breakouts of PEDv in 2014. High stock levels and subdued consumer demand have also reduced import demand. Volumes of pork going to Russia have continued to increase, by 66% on the same time period in 2014. This follows sanctions placed by Russia on some of its traditional pork suppliers leading to higher demand from other exporters.
Exports to the EU in the first half of 2015 have fallen by over a third compared to the same period last year. Despite this, Chile has remained as the largest exporter to the EU, with a 31% market share in the same period based on EU import statistics, even though it shipped just 1,100 tonnes in the first six months of the year.
Despite overall demand for Chilean pork continuing to grow, the overall unit price for the first six months of the year declined by 13% in US dollar terms given the decline in the global market so far this year. This left the overall value of exports up by only 2% at US$190 million.