Smaller decline in EU pork exports in July
The sharp year-on year decline of 31% in EU pork exports in the second quarter of 2017 slowed down to 16% in July.
Of the top ten markets it was only China that showed a decline in July compared to a year earlier. In January-July 2017 EU exports were down 14% given the 38% fall in trade with China but with increases to most other markets.
Pork exports in July amounted to 159,000 tonnes although it was just shipments to China that disappointed, 45% down on July 2016 at 52,000 tonnes. However, China remained the largest market for the EU. Exports to Japan, the second largest market, were up 11% year-on-year. Sales to other Asian markets also performed well with South Korea, Hong Kong and Philippines up by 14%, 17% and 28%, respectively. Of the other top ten markets, exports to the Congo doubled over July last year to 2,300 tonnes while shipments to the Ivory Coast were up 26%. Exports to the United States increased by 43% to 8,900 tonnes, although they were actually 13% less than in June 2017.
Despite the overall export volume from the EU remaining below July 2016, the unit price of fresh and frozen pork was well up given higher pig prices in the EU this year and generally firm global market with the exception of China. The average price increased by 10% on the same month last year in spite of the 10% reduction obtained on the Chinese market.
Pig offal exports were not so much affected by the slowdown in the pork trade, and remained fairly static in July against the previous year, falling by less than half a percent to 101,000 tonnes. While volumes to China fell by 14% on the year earlier to 56,000 tonnes, shipments to other key Asian markets increased. Hong Kong and Philippines, the second and third largest markets, took 42% and 34% more than a year ago. Among smaller markets, South Korea, Vietnam and Japan all took more.
In January-July 2017 the offal trade has held up somewhat better than for pork being just 6% lower than a year earlier. Taking all pig meat products into account, including offal, the total value of EU exports in July was €603 million, nearly 5% down on July 2016.
Dorian Harris, Analyst
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