Danish pork exports remain up in 2018
Between Jan-Sep 2018, Danish fresh/frozen pork exports rose by around 3% year-on-year to total 840,000 tonnes.
Despite an increase in volume terms, the value of shipments has declined by 10%, to DKK 12.4 billion (€1.7 billion). Increased pig production throughout Europe, competition on global export markets, as well as concerns surrounding ASF, have been putting pressure on the pig price.
Trade with European nations accounted for the bulk of fresh/frozen export increases. Deliveries to the EU as a whole are up around 5% (+28,000 tonnes). Within this, shipments to Germany are up 24,700 tonnes (+10%) in the period, totalling 266,000 tonnes. Meanwhile Poland (+6%) and Italy (+10%) also continue to receive more Danish product. In contrast, shipments to the UK, Denmark’s third largest market, decreased by almost 8% (-7,700 tonnes) to total 93,000 tonnes.
Trade with non-EU countries declined by 1% (-2,600 tonnes) in the period to September 2018. Decreased shipments have been primarily fuelled by lower exports to China, down 18% (-10,800 tonnes) to now total just 48,500 tonnes. Shipments to Denmark’s largest non-EU market, Japan, also declined slightly in the period. Although Japanese import demand has remained stable, increased competition from Spain, Canada and the Netherlands resulted in Denmark losing market share. Exports to Japan totalled 82,000 tonnes (-1.4%).
Across the other pig meat categories, there have been increases in exports of bacon (+24%), processed hams (+1%) and sausages (+6%). Collectively, exports for these categories totalled 102,000 tonnes. The vast majority of the increased demand for these categories has come from the UK, collectively up 22% to total 51,000 tonnes. Meanwhile, exports to South Korea have decreased by a third to total 1,500 tonnes, and shipments to Algeria fell over 70% to just 400 tonnes.
Exports of live pigs remained elevated in 2018. Live exports in the year to September totalled 11.7 million (+4%). Deliveries to Germany were slightly down on the year, and instead the overall growth was primarily driven by higher exports of weaners to Poland (+10%). Low finished pig and weaner prices have weighed on live exports, with total value down 20% compared to 2017.
Tom Forshaw, Analyst
Tom.Forshaw@ahdb.org.uk, 024 7647 8647