China drives Canadian export growth
In the first nine months of 2016, Canada, the world’s third largest pork exporter, shipped 9% more pork than a year before.
This was almost entirely due to exports to China more than trebling. Remarkably, China actually overtook the United States as Canada’s leading market (in volume terms, at least) in the second quarter of the year. Growth did slow somewhat in the latest three months but the volume was still twice its level in the same period of 2015. Among other markets, only Japan and Mexico took more Canadian pork in the first nine months of this year, while sales to the key US market were down 9%.
Trade was helped by a fall in the value of the Canadian dollar against its US equivalent. This meant that while unit prices were 3% higher in Canadian dollar terms, they were 2% lower in the US currency. The net result was that the value of exports over the nine months totalled C$2.32 billion, 12% up on a year earlier.
Canada has recently signed a trade agreement with the EU, which will give it access to an increased tariff-free import quota for pork. However, the latest data shows that the EU is not currently a significant market for Canadian pork, so it is unclear how quickly shipments will grow. In the first nine months of this year, less than 1,000 tonnes of pork was shipped from Canada to the EU, a reduction compared with the same period in the previous two years. On the other hand, imports of EU pork into Canada were higher, rising by 55% to 14,100 tonnes, largely offsetting a fall in imports from the US.
Stephen Howarth, Market Specialist Manager
Stephen.email@example.com, 024 7647 8856