According to figures presented by French experts this Wednesday, China imported as much pigmeat in the first six months of this year as it did for the whole of last year.
“China has skyrocketed and this has thankfully replaced what we used to export to Russia,” said Jan Peter Van Ferneij of the French Pigmeat Institute in reference to the Russian ban on European food imports.
According to Thierry Meyer of France’s largest meat processor Bigard, who chairs the export committee of the industry body Inaporc, Chinese demand peaked between February and June this year and drove the global price recovery, with 43,000t imported on average every week, “as much as the whole French production”.
The second semester will remain strong, albeit at lower levels
“The second semester will remain strong, albeit at lower levels,” he added. “Chinese buyers slammed on the brakes in June and July because they needed to rebuild their cash reserves, but they are back now and demand will remain high at least until the Chinese New Year [end of January 2017].”
In addition to direct shipments – China has now overtaken Italy as France’s top export market – demand there has also had a domino effect within the EU.
“It is good that the Germans export so much to China – those products are not staying on the European market,” said Van Ferneij.
Listen to an interview with Jan Peter Van Ferneij in our podcast below:
He added that China was becoming a higher-value market, with growing demand for prime cuts. This is true on the traditional offal market too. Meyer said that pig’s ears fetched higher prices than boned loins in China.
We know how dependent we were on Russia and we saw how much it cost us
Philippe Bizien, chair of Brittany’s pig farmers committee, sounded a note of caution: “We know how dependent we were on Russia and we saw how much it cost us. Now our reliance on China is even greater,” he said.
Speakers identified other overseas opportunities, including Japan, the world’s second largest pork importer, where prices are double European ones. French researchers are exploring ways of extending the shelf life of fresh meat to put it on the four- to five-week boat trip to Japan, where it commands a 40-50c/kg premium over current frozen shipments.
The stringency of Japanese sanitary controls also means that exporters approved there are in a good position to gain access elsewhere in Asia. This is how Spain, Europe’s fastest growing exporter, has been progressing in the region recently.
Mexico an option, Russia not to be ruled out
Meanwhile, Meyer said that Mexico offered good prospects. Russia should not be neglected for specialist products not covered by the ban, such as fat or pig’s hearts, which sell there for €1.15/kg compared with 25c/kg on the pet food market in Europe.
He added that exporters should focus on their domestic market and those high-value third country exports first, and look at exports to other EU countries as a mere regulation option where not much value can be gained.
Read more
Chinese soaking up pig meat as prices strengthen
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Full coverage: SPACE livestock show
According to figures presented by French experts this Wednesday, China imported as much pigmeat in the first six months of this year as it did for the whole of last year.
“China has skyrocketed and this has thankfully replaced what we used to export to Russia,” said Jan Peter Van Ferneij of the French Pigmeat Institute in reference to the Russian ban on European food imports.
According to Thierry Meyer of France’s largest meat processor Bigard, who chairs the export committee of the industry body Inaporc, Chinese demand peaked between February and June this year and drove the global price recovery, with 43,000t imported on average every week, “as much as the whole French production”.
The second semester will remain strong, albeit at lower levels
“The second semester will remain strong, albeit at lower levels,” he added. “Chinese buyers slammed on the brakes in June and July because they needed to rebuild their cash reserves, but they are back now and demand will remain high at least until the Chinese New Year [end of January 2017].”
In addition to direct shipments – China has now overtaken Italy as France’s top export market – demand there has also had a domino effect within the EU.
“It is good that the Germans export so much to China – those products are not staying on the European market,” said Van Ferneij.
Listen to an interview with Jan Peter Van Ferneij in our podcast below:
He added that China was becoming a higher-value market, with growing demand for prime cuts. This is true on the traditional offal market too. Meyer said that pig’s ears fetched higher prices than boned loins in China.
We know how dependent we were on Russia and we saw how much it cost us
Philippe Bizien, chair of Brittany’s pig farmers committee, sounded a note of caution: “We know how dependent we were on Russia and we saw how much it cost us. Now our reliance on China is even greater,” he said.
Speakers identified other overseas opportunities, including Japan, the world’s second largest pork importer, where prices are double European ones. French researchers are exploring ways of extending the shelf life of fresh meat to put it on the four- to five-week boat trip to Japan, where it commands a 40-50c/kg premium over current frozen shipments.
The stringency of Japanese sanitary controls also means that exporters approved there are in a good position to gain access elsewhere in Asia. This is how Spain, Europe’s fastest growing exporter, has been progressing in the region recently.
Mexico an option, Russia not to be ruled out
Meanwhile, Meyer said that Mexico offered good prospects. Russia should not be neglected for specialist products not covered by the ban, such as fat or pig’s hearts, which sell there for €1.15/kg compared with 25c/kg on the pet food market in Europe.
He added that exporters should focus on their domestic market and those high-value third country exports first, and look at exports to other EU countries as a mere regulation option where not much value can be gained.
Read more
Chinese soaking up pig meat as prices strengthen
EU sanctions put Russian farmers on the pig’s back EU sanctions put Russian farmers on the pig’s back
Full coverage: SPACE livestock show
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