Forums
New posts
Forum list
Search forums
What's new
New posts
New resources
Latest activity
Trending Threads
Resources
Latest reviews
Search resources
FarmTV
Farm Compare
Search
Tokens/Searches
Calendar
Upcoming Events
Members
Registered members
Current visitors
New Resources
New posts
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Forum list
Search forums
Menu
Log in
Register
Navigation
Install the app
Install
More options
Contact us
Close Menu
Forums
Agricultural Media
News, PR, Shows and Events
Firm export demand from China offsets weak domestic pork consumption
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Agriland RSS" data-source="post: 6787429" data-attributes="member: 105608"><p><img src="https://s3-eu-west-1.amazonaws.com/files.thefarmingforum.co.uk/images/agrilanduk.JPG" alt="" class="fr-fic fr-dii fr-draggable " style="" /></p><p></p><p>Written by Rachel Martin</p><p></p><p>Prime pig producer prices in GB have been relatively stable in the early weeks of 2020, contrasting with their traditional seasonal downward trend, according to the latest market analysis by Quality Meat Scotland (QMS).</p><p></p><p>At price-reporting GB abattoirs, the Standard Pig Price (SPP) stood at <strong>162.8p/kg</strong> deadweight in the second week of February, up slightly from 162.4p/kg at the turn of the year.</p><p></p><p>According to Iain Macdonald, senior economics analyst with QMS, the recent price stability has taken the producer price from a year-on-year increase of 16% as 2020 began, to an 18.4% lead in the second week of February.</p><p></p><p>“This has come despite Defra slaughter statistics suggesting higher production in January,” said Macdonald.</p><p></p><p></p><p></p><p>Meanwhile, domestic consumption has been weak. Kantar reported an <strong>8.6% reduction</strong> in spending on pork by GB households compared to a year earlier in the 12 weeks to January 26.</p><p></p><p>“Higher retail prices mean that the quantity of pork sold fell further, however, sales of processed pork products have been more stable,” commented Macdonald.</p><p></p><p>Since the UK is only 59% self-sufficient in pigmeat production, international trade introduces significant market forces to the equation.</p><p></p><p>UK trade statistics reveal significant falls in imports and rises in exports during 2019 so the net balance of imports has fallen, tightening supplies on the UK market.</p><p></p><p>“Growth in exports came almost entirely from increased deliveries to China/Hong Kong which more than doubled from a year earlier during the final quarter of 2019, giving this market a 45.6% share of exports in 2019, up from 24.9% in 2018,” added Macdonald.</p><p></p><p>Official Chinese Government statistics indicated that by October 2019, the country’s pig population had contracted by around 40% as a result of the African Swine Fever outbreak, which first appeared in China in August 2018.</p><p></p><p>While industry sources suggest even larger declines, a 40% reduction in China lowers global pigmeat production by 20%.</p><p></p><p>With pork a staple of the Chinese diet, and market research suggesting that as many as a quarter of Chinese consumers would be willing to buy pork at any price, a strong rise in import demand has pushed up farmgate prices across the world over the past year.</p><p></p><p>“The wholesale pork price in China had nearly tripled from early 2019 to a peak of 52 yuan/kg (£5.75/kg) as November began,” said Macdonald.</p><p></p><p>“However, a surge in imports helped stabilise the market and global traders reported weaker demand in December.</p><p></p><p>“UK trade figures support this as although exports were more than double year-earlier levels, they did fall back sharply from an annual peak in November.</p><p></p><p>“By the year-end, Chinese wholesale pork prices had eased to 43 yuan/kg (£4.75/kg) and GB and EU producer prices stopped rising,” he added.</p><p></p><p>In early 2020, the evidence points to a renewed supply crunch in China. In the run-up to the lunar New Year celebrations on January 25, Chinese wholesale prices rose by around 10%, reaching 47 yuan/kg (£5.20/kg).</p><p></p><p>However, at this time attention turned from animal health to human health with the conformation of a coronavirus outbreak in China.</p><p></p><p>Measures introduced by the Chinese Government to control the outbreak contributed to demand from the foodservice sector plummeting while retail distribution was severely disrupted. Additionally, global traders reported market access challenges, due to shortages of staff at the ports and in customs.</p><p></p><p>However, once price reporting resumed on February 10, a further tightening was evident, with pork prices climbing to around 50 yuan/kg (£5.50/kg).</p><p></p><p></p><p></p><p>“In short, the level of supply in the world’s largest pork market remains well below the quantity demanded by its people, keeping imports strong and pig prices across the world at record highs. Given the scale of production losses in China, it will take years to recover,” said Macdonald.</p><p></p><p>“These recent developments in China show how quickly an animal health or human health issue can destabilise the global red meat market,” he added.</p><p></p><p>The post <a href="https://www.agriland.co.uk/farming-news/firm-export-demand-from-china-offsets-weak-domestic-pork-consumption/" target="_blank">Firm export demand from China offsets weak domestic pork consumption</a> appeared first on <a href="https://www.agriland.co.uk" target="_blank">Agriland.co.uk</a>.</p><p></p><p><a href="https://www.agriland.co.uk/farming-news/firm-export-demand-from-china-offsets-weak-domestic-pork-consumption/" target="_blank">Continue reading on the Agriland Website...</a></p></blockquote><p></p>
[QUOTE="Agriland RSS, post: 6787429, member: 105608"] [img]https://s3-eu-west-1.amazonaws.com/files.thefarmingforum.co.uk/images/agrilanduk.JPG[/img] Written by Rachel Martin Prime pig producer prices in GB have been relatively stable in the early weeks of 2020, contrasting with their traditional seasonal downward trend, according to the latest market analysis by Quality Meat Scotland (QMS). At price-reporting GB abattoirs, the Standard Pig Price (SPP) stood at [B]162.8p/kg[/B] deadweight in the second week of February, up slightly from 162.4p/kg at the turn of the year. According to Iain Macdonald, senior economics analyst with QMS, the recent price stability has taken the producer price from a year-on-year increase of 16% as 2020 began, to an 18.4% lead in the second week of February. “This has come despite Defra slaughter statistics suggesting higher production in January,” said Macdonald. Meanwhile, domestic consumption has been weak. Kantar reported an [B]8.6% reduction[/B] in spending on pork by GB households compared to a year earlier in the 12 weeks to January 26. “Higher retail prices mean that the quantity of pork sold fell further, however, sales of processed pork products have been more stable,” commented Macdonald. Since the UK is only 59% self-sufficient in pigmeat production, international trade introduces significant market forces to the equation. UK trade statistics reveal significant falls in imports and rises in exports during 2019 so the net balance of imports has fallen, tightening supplies on the UK market. “Growth in exports came almost entirely from increased deliveries to China/Hong Kong which more than doubled from a year earlier during the final quarter of 2019, giving this market a 45.6% share of exports in 2019, up from 24.9% in 2018,” added Macdonald. Official Chinese Government statistics indicated that by October 2019, the country’s pig population had contracted by around 40% as a result of the African Swine Fever outbreak, which first appeared in China in August 2018. While industry sources suggest even larger declines, a 40% reduction in China lowers global pigmeat production by 20%. With pork a staple of the Chinese diet, and market research suggesting that as many as a quarter of Chinese consumers would be willing to buy pork at any price, a strong rise in import demand has pushed up farmgate prices across the world over the past year. “The wholesale pork price in China had nearly tripled from early 2019 to a peak of 52 yuan/kg (£5.75/kg) as November began,” said Macdonald. “However, a surge in imports helped stabilise the market and global traders reported weaker demand in December. “UK trade figures support this as although exports were more than double year-earlier levels, they did fall back sharply from an annual peak in November. “By the year-end, Chinese wholesale pork prices had eased to 43 yuan/kg (£4.75/kg) and GB and EU producer prices stopped rising,” he added. In early 2020, the evidence points to a renewed supply crunch in China. In the run-up to the lunar New Year celebrations on January 25, Chinese wholesale prices rose by around 10%, reaching 47 yuan/kg (£5.20/kg). However, at this time attention turned from animal health to human health with the conformation of a coronavirus outbreak in China. Measures introduced by the Chinese Government to control the outbreak contributed to demand from the foodservice sector plummeting while retail distribution was severely disrupted. Additionally, global traders reported market access challenges, due to shortages of staff at the ports and in customs. However, once price reporting resumed on February 10, a further tightening was evident, with pork prices climbing to around 50 yuan/kg (£5.50/kg). “In short, the level of supply in the world’s largest pork market remains well below the quantity demanded by its people, keeping imports strong and pig prices across the world at record highs. Given the scale of production losses in China, it will take years to recover,” said Macdonald. “These recent developments in China show how quickly an animal health or human health issue can destabilise the global red meat market,” he added. The post [URL='https://www.agriland.co.uk/farming-news/firm-export-demand-from-china-offsets-weak-domestic-pork-consumption/']Firm export demand from China offsets weak domestic pork consumption[/URL] appeared first on [URL='https://www.agriland.co.uk']Agriland.co.uk[/URL]. [url="https://www.agriland.co.uk/farming-news/firm-export-demand-from-china-offsets-weak-domestic-pork-consumption/"]Continue reading on the Agriland Website...[/url] [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
Agricultural Media
News, PR, Shows and Events
Firm export demand from China offsets weak domestic pork consumption
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…
Top